Mutual Funds are professionally managed collective
investment vehicles that help small investors to participate in capital
market. The minimum investment required
by one to participate in the mutual fund is at a minimum amount of Rs.1000/-.
Benefits of investing in mutual funds are as
follows:
1. Potential of decent returns: Since
the Mutual Funds are based on capital markets or designed to imitate the
underlying market structure, there are very high chances that the fund returns
are better versus the actual index movement.
2. Low charge structure and Low entry level : With a low entry level point(Rs.1000) a small/retail
investor can enter in the market getting ownership of Blue Chip stocks which would otherwise not be
possible for him in direct equity. Also,
with the services of highly qualified people, the percentage of administration
costs levied by fund houses is very nominal.
3. Liquidity: In
case of any emergency, the investor can redeem his investments from the fund
within next 24 hours in case of liquid funds and 72 hours in other funds.
Contined......in part 02
Thanks and Regards
Team
Email: saarthifp@gmail.com
