Mutual funds are one of the great investing options for individuals with no prior knowledge about investing. The best thing about mutual funds is that it can be started with just Rs 500 a month. There are many reasons stating why mutual funds should definitely be a part of your wealth building portfolio.
Backed by a dedicated research team, investors are provided with the services of an experienced fund manager who handles the financial decisions based on the performance and prospects available in the market to achieve the objectives of the mutual fund scheme.
Higher Return Potential
Based on medium or long-term investment, mutual funds have the potential to generate a higher return, as you can invest on a diverse range of sectors and industries.
Safety & Transparency
Fund managers provide regular information about the current value of the investment, along with their strategy and outlook, to give a clear picture of how your investments are doing.
Moreover, since every mutual fund is regulated by SEBI, you can be assured that your investments are managed in a disciplined and regulated manner and are in safe hands.
Probably the biggest advantage of mutual funds is that it can be started out with as low as Rs 500 through systematic monthly investment. It is one of the best options for young investors who are just starting out.