Mutual Funds — Advantages (Part 3)
Whether you are a first-time investor or a seasonal person, a mutual fund is something you should consider on a priority for your investment. However, you should know the advantages of this investment tool before taking this investment into the account. After all, it’s about your money. Here:
· Expert Management: Mutual Fund is preferred amongst all because it doesn’t require the investors to do fund allocation and research regarding the same. Everything is taken care by an asset manager and makes the decision according to your investment. You just need to relax.
· Liquidity: Unless you choose close ended mutual funds, it is comparatively easier to buy and exit this scheme. You are free to sell your units anytime. (Always remember, you are the King) Make sure you keep an eye on surprises like a pre-exit penalty or exit load).
· Investing in small variables: By investing in SIP (smaller denominations), you will get good exposure to multiple asset classes. This will reduce the average NAV buying prices, thus giving you benefits from the market (highs and lows). Regular, monthly or quarterly investments, the choice is all yours!
· Cost-efficiency: Nothing will burn your pocket. You can pick mutual funds according to your budget (subject to minimum investment depending on the fund) else, you can also take an update on the expense ratio of different mutual funds present and choose that fits in your financial goals and budget.
· Painless and Quick Process: The process is pretty fast with mutual funds, Ouch! emotion won’t be there. You can simply start with the mutual fund in an economical way. Managing your portfolio won’t be a headache, the fund manager and his/her team will take care of everything, thus providing you maximum returns.
· Automated Payments: It’s human nature to forget or delay payments due to many reasons. You can opt for the paperless method with your agent or fund house. SMS notifications and timely email will help you in avoiding any kind of negligence.
· One-time Investment: You can plan to invest in a mutual fund as per your convenience and budget. Initially, you can take a step by investing in SIP (Systematic Investment Plan) whether monthly or quarterly. Just in case, if you are having a surplus amount, opt for one-time lumpsum investment like liquid funds.
Like said, the advantages of mutual funds are good to go if you make the right choice. Investing in Gulaq could solve this problem; if you don’t have the knowledge, patience or time to research different types of mutual funds. The homework for picking the top-rated funds for you have been done by Gulaq (launching soon!) Stay tuned!
Read More About Mutual Funds Basic Part 1
Read More About Mutual Funds Basic Part 2
Till then Happy Investing!
*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.