Why Mutual Funds Investment is a Good Approach to Attain a Good Return?
‘I want to buy my dream home with my savings’. This is a famous saying and dream of every individual especially of a salaried person. But it requires a perfect financial planning for accomplishing such long term serving goals. Sometimes, people didn’t have enough time to search for good stocks to invest in & they invest in inappropriate money saving scheme that didn’t deliver them good return after the maturity of a policy.
For a person who has a small amount of money to start initially for a specific financial goal, Mutual funds schemes are the best money saving option which allow him to set up an automatic regular purchase plan or Systematic Investment Plan through which the set amount automatically gets deducted from a buyer saving account every month. Mutual Fund Schemes are considered to be the best investment option to attain a good return because of the following reason:
Managed professionally:- These funds are usually managed by professional fund managers who’ve a vast experience and in-depth of every scheme. The professional fund managers actively participate in money allocation in different market instruments like debts; equities etc and diversify your portfolio according to the risk profile and performance of a respective mutual fund scheme. Mutual fund investment is somehow similar to investment in stock markets with an experienced stockiest and here also the diversification of a portfolio holding is a key factor which is done professionally by a fund manager to lower the market risk. A fund manager in such allocation implements his complete experiences in identifying stocks and investing requisite capital from holdings to attain good return from sensitive market.
Investment Costs are Low:- While investing in a mutual fund scheme through systematic investment plan, you as an investor didn’t need to pay commissions for each buy or sale of single security as your mutual fund portfolio is seriously maintained by a mutual fund manager. A professional & experienced mutual fund advisor always chose the no load funds having low expense ratios in order to minimize risk factor associated with such long term financial plan.
Varieties of Available Investment Option:
For every investor, there are several categories of funds available that can suit one’s investment need. Some specific financial goals like retirement and education plans are available for those who seek a long term investment plan but each goal needs different funds to suit the needs of the investor. Investors can also invest in short term plan like bond funds or money market funds, if they’re uncomfortable with a long term financial investment option. Alternatively, investors also have options to invest in more specific investment objectives by combining types of different funds i.e. hybrid funds to attain financial stability.
Know more about types of mutual funds in India
Mutual Funds are Versatile:- Mutual funds are versatile in nature and it can be used by all types of investors. They’re quite flexible and can be used easily by beginners but the professional money managers often use them in a best way to build portfolios for clients. New investors can use a specific mutual fund to start planning for retirement while a big investment firm might use the same mutual funds in a portfolio of funds for major clients to gain maximum output with a right investment.
Mutual funds are no doubts the best investment option for an individual and firms nowadays. However, consulting a professional financial service provider is also necessary to gather information of a respective financial plan. So, start investing in mutual fund schemes and establish your financial wealth for a secure future now.
Mr. Ajay Kumar Jain, M.Sc, Chairman And Managing Director
Being the Chairman And Managing Director, he focuses on holistic investment planning and wealth management and tries to make investment planning simpler for retail and HNI investors. Investor education is one of the prime things that Mr. Ajay Jain focuses on as he believes financial education is the foundation of successful investing. With over two decades of experience, Mr. Jain has made a mark in the Indian mutual fund industry due to his compassion and sheer hard work.