Why You Should Consider Investing in Mutual Funds Today
Investment done at the right time helps you to be financially stable in the long run. In India, mutual funds are considered a wise investment as it helps you grow your wealth exponentially with time. When you opt for this investment plan, you generally go for the best performing mutual funds India to ensure your money is safe and growing.
There are two types of goals, i.e. Short term and Long term. However, the goal doesn’t matter, as one of the best ways to grow your money is by investing in the best mutual funds.
What are mutual funds?
Mutual funds, managed by a funds manager or portfolio manager, is an investment scheme that pools money from investors and uses it to buy a diversified portfolio of bonds, stocks or other securities. These funds are basically bought and sold on a day-to-day basis at the net asset value (NAV) price, which is calculated at each trading day’s end. Moreover, the value of investors money fluctuates based on the performance of the funds in the portfolio.
However, it is always advisable to first research and develop the best performing mutual funds and then invest carefully.
What are the benefits of mutual funds?
It allows investors to put their money in various securities such as bonds, stocks, or other securities. This investment across different assets ultimately helps them to reduce the overall risk.
Save on taxes
If you invest in an ELSS (Equity Linked Savings Schemes) fund, you’ll be able to reduce your taxable income by as much as Rs 1,50,000. This falls under Section 80C of the Income Tax Act 1961.
You can even start with as little as Rs 500. Yes, you heard it right. A SIP can be initiated with as little as this amount so that you don’t have to wait to accumulate enough cash to make investments.
Investing via mutual funds is relatively cost-effective and economical. This is because when you buy equity directly, you have to pay brokerage as well as the Securities Transaction Tax (STT) costs. The larger the number of transactions, the higher the costs.
How to invest in mutual funds?
Long gone are the days when people used to travel to financial institutions to understand and invest their money. Around three months ago, when I was planning to invest, I went on the internet and searched for the ‘best mutual fund to invest today’ and ended up downloading the Bajaj Finserv application.
Believe me, it is one of the most convenient applications to use when it comes to investment. Along with it, I also use it for all kinds of digital payments.
- Download the application from the Play Store/App Store.
- Sign up by entering all the required information
- On the home page, go to the Mutual funds under the Investment Bazaar section
- Explore and go ahead as per your suitability