4 reasons to invest in mutual funds online

Everyone’s heard of mutual funds , but few people understand the importance of investing. Young would-be investors in 2018 would rather spend Rs.5,000 today than invest it to earn Rs.50,000 tomorrow. The right mutual fund investments have helped intelligent investors of this generation rake in massive amounts of wealth. Here’s 4 reasons why the “spend-it” generation should embrace the “invest-it” lifestyle:

  1. Higher returns: When compared to other types of investments, equity-based funds have managed to deliver between 11% - 15% returns over the last 10 years which is much higher than fixed deposits, recurring deposits, or even gold or real estate..
  1. Short or no lock-in period: Most traditional investments that offer a respectable amount of returns come with a minimum lock-in period. Fixed deposits, recurring deposits, etc. all have lock-in periods which means that invested amounts are tied up until maturity. Most mutual fund schemes have no lock-in period (or a very small lock-in period) and can be redeemed as and when the need arises. Even ELSS - Equity Linked Savings Schemes - which are tax-saving investments, only have a lock-in period of 3 years as opposed to 5 years with FDs for similar tax benefits.
  1. Professionally managed: Mutual fund schemes are professionally managed to ensure that they beat their benchmark returns and provide the maximum benefit to investors. Fund managers are qualified to study the markets and shift investments around accordingly. Rest assured, your money is in capable hands.
  1. Diversification: Mutual funds enable investors to spread their investments to cover a wide range of companies/investment opportunities. Rather than taking the huge risk of investing all your funds in one stock, mutual funds own a portfolio of stocks from different sectors, thus spreading out the total invested amount to minimize the overall investment risk.

You can browse through and invest in the best mutual funds of 2018 online through FundsIndia and benefit with custom recommendations from our award-winning advisory services.