Today it is easy to multiply your wealth with the multiple investment options available to invest. Mutual funds are one of the most popular investment options available among the new investors as it provides portfolio diversification and one can start investing with a small amount using the Systematic Investment Plan (SIP). With the advancement in technology, access to the internet and smartphones, smart devices, etc investing money has become way easier. Even a person with basic computer knowledge can start investing. Today there are multiple websites, apps that provide complete guidance to invest in mutual funds. Apps like mycams provide a gateway to multiple mutual funds which include SBI, HDFC, ICICI, Kotak, and many more. You can even monitor and track your investment through this app by adding the funds to the watchlist.
Let’s look at the benefits of investing in mutual funds.
Portfolio Diversification – One of the major advantages of investing in mutual funds is the diversification of the portfolio. This means buying stocks of the different companies at different times. This way if any of the stock prices fall, the other stocks can make up for a loss. As a result, falling off one stock price will not have a major impact on the investments.
Small Amount of Money – You can start your investment in mutual funds with a small amount of money. Since there is the pooling of funds, retail investors can invest their money and can get diversification and access to professional advice to manage their funds. Instead of investing a lump sum amount, mutual funds give the option to invest a fixed amount of money every month by starting a SIP.
Liquidity – Unlike the other investments, mutual funds provide better liquidity. You can enter or exit anytime as compared to real estate, PPF, NPS, etc. Buying or selling mutual funds can be done on a day to day basis based on Net Asset Value. For retail investors, the liquidity feature makes mutual funds the best option to invest among various investments available.
Return On Investment – As compared to the other investment options, mutual funds provide a better return on investment. You can also invest in different types of funds like equity, debt, hybrid, small-cap and large-cap funds based on the financial objectives. Check out the Finity app. It charges no commission, no fee to invest and gives an edge to earn more returns and provides the diverse funds to invest.
Professional Expertise – Professional expertise in managing the funds is also one of the major factors that make it viable to invest in mutual funds. Most of you don’t keep daily track of the stock market. But in the mutual fund, the fund manager keeps a regular check of the stocks and based on that manages the funds daily.
With the apps like Groww, you can also invest in FD’s, stocks, and gold. It is rightly said, “The earlier you start investing, the better it is”. Start investing your money today.