Are you planning to invest in mutual funds? But a little confused as you are not much aware with the basic concept of mutual funds. You don’t have to worry as MoneyMindz, Financial Advisory Portal, advices you with the necessary details of mutual funds helping you be confident while investing. The demand for products facilitating investments has grown over time in search of a better lifestyle. Adding to it the depreciating value of the currency has forced investors to look at a diverse array of investment solutions which can help them grow their wealth. A convenient way to increase potential returns and gain access to financial markets is provided by mutual funds. This is also a reason why the importance of mutual funds is growing.
Mutual Funds “Sahi Hai”?
Mutual funds are created as baskets of investments, which invest into financial instruments like stocks and bonds according to their defined investment objectives. Investing in them allows an investor to gain access to asset classes like equities, bonds or fixed income securities, commodities, and even bullion.
These investment vehicles are created by fund companies under the aegis of an investment trust and are owned by investors who buy units or shares in them. They are pools of investment formed from the money invested by investors in exchange for units or shares. They are managed by an investment team with portfolio composition decisions being taken by a fund or portfolio manager. The manager, with the help of research analysts, decides which instruments, stocks or bonds, go into an investment portfolio or fund, and which need to be sold off.
Importance Of Mutual Funds
For investors, one of the most prominent benefits that mutual funds provide is convenience. By investing in a single fund, they can gain access to a broad range of the financial market. A typical diversified equity fund can spread out the money across tens of stocks with some portion invested in fixed income securities as well.
Further, if an investor wants to focus on one segment of the market, for instance, large-cap stocks, funds focused on this segment can spread out the investment across multiple large-cap stocks in just one transaction of purchasing the fund. If the investor were to try to do that themselves, it would take a lot of effort, transaction cost, and time to create an individual large-cap stock portfolio. The situation with investing in bonds is even more difficult if one tries to do it individually rather than taking the fund route.
Ease Of Investment:
Apart from this, mutual funds are easy to buy and sell. One can either engage the services of a distributor or agent to transact in funds or do it over the internet themselves. In case of the latter, the transaction amount is debited from or comes directly to the bank account linked to the mutual fund account depending on whether a fund has been bought or sold.
Spoilt For Choice:
This feature follows from the convenience aspect discussed above. Investors have several choices when it comes to mutual funds. And given their investment objectives, funds provide access to a wide range of financial instruments, sectors, and strategies.
Earn.Save.Spend. This is the cycle of money that we live by every month, if not every day, of our lives. By now, we’re sure you know the importance of saving. Perhaps, you’ve even realized the significance of investing. When you invest, your money multiplies. Your investment choice can, obviously, significantly impact the rate at which your money compounds. Kuber Mindz, Financial Adviser guides you with the correct choice of mutual funds for investing.
For more information visit www.moneymindz.com or give a missed call to 022-62116588.