The Simple Benefits of Investing in Mutual Funds in India

Aren’t we all bogged down about the different investment options that are available for us? One of the first things that come to our mind when we are thinking about making investments is mutual funds. There are many benefits and most of them are way better than investing in any other form.  Well, here are simple financial gains you can get out of investing in them –

Image Credit: LendingMemo.com

1.       Beat Inflation: Without having to think too much, you can beat inflation and hence get good returns. Instead of having to put your money into the standard saving accounts in your bank, you can make your money grow via mutual funds. While you invest in the savings account of your bank, you get just about 6% interest – that does not beat inflation which is close to 10% on an average. So, mutual funds would always be a smarter investment as compared to a basic bank investment.

2.       The Convenience Factor: As compared to investing in the stock market or even real estate, investing in mutual funds is a lot easier. There is a lot of documentation when you are going to invest in real estate or the stock market – on the other hand, investing in mutual funds in India is really easy. Not too much documentation or details to be shared.

3.       Tax Saving Benefits: the biggest advantage you get by investing in mutual funds is that you get tax exemptions from the government too. That means you are able to save money apart from the growth that comes your way. Completing the limit of your tax exemption is a must of a goal and you can do that easily by investing smartly.

4.       Cost Factor: With all the investment points that are present in the market today, you need to be very choosy about where you put your money. It does require a lot of research, but especially if you are putting larger sums of money. This is the case with real estate especially – the cost of investment is really high. When it comes to mutual funds though, your costs are lower and thus, it is affordable.

5.       It’s a Mixed Basket: It is never advisable to put all your money into a single point of investment. You need to keep your investments as diversified as possible and thus you have a wide array of assets. There are plenty of short, medium and long term options that are virtually tailor made for you.

6.       Accessible Investments: Unlike how you get stuck with many investments – stock market, real estate or even gold, mutual funds can be liquidated any time. There are many schemes that can be used based on the net asset value at any time.

7.       Crystal Clear: One of the best advantages you get with mutual funds is that you always aware of the investment value and growth. Plus, each mutual fund is regulated by SEBI and that guarantees that your money is kept in the right place.

There is no doubt that there are plenty of benefits when you make smart investments. The entire idea is to plan the money you have saved towards mutual funds. Not only would you be saving money, you would be making money.