Mutual funds are increasingly becoming popular among the current generation. If you must know, this kind of investment is ideal for those who do not have the time to handpick the preferred stocks but wish to invest in different schemes, at the same time, with different investment objectives. With mutual funds, you can enjoy proper management, lesser transaction costs, easy liquidity, diversification of portfolio, etc.
There are several advantages of investing in mutual funds. Here are a few that you might want to take a note of
It ensures proper and well regulated management of funds.
There is diversification of portfolio, which means lower risks.
There is a disciplined investment approach.
The transaction costs are much lesser.
Mutual funds are an easy liquidity option.
Mutual fund is a vast topic and offers a plethora of options. You may invest in equities, tax saving funds, balanced funds, etc. through lump sum, Systematic Investment Plans (SIPs), Systematic Withdrawal Plan (SWPs), New Fund Offers (NFO 's) and Systematic Transfer Plan (STPs). You can leverage your mutual fund units (selected funds only) for a margin so you can trade in derivatives and equities through our cross margin facility. This means, that you have the benefit of trading for short term without losing out on staying in on mutual funds in the long run.