Today there are various ways and also options to invest in, ranging from recurring deposits to postal saving schemes. But investment in mutual funds has grown quiet massively and still growing. The reasons for such growth in mutual funds can be attributed to the fact that investment in them can be done with ease.
Today time is a big constraint for people, a few people have the time to follow shares and understand the volatilities involved in share market. It is rightly said that stock market is gamble. So people today want someone to look after there investments and suggest them regarding there investments. In this situation mutual funds come to their rescue.
Firstly a professional and qualified fund manager manages mutual funds. Though investors have the capacity and capability to Asses and understand a financial instrument but still an analytical and wise decision making capacity of a fund manager is very beneficial.
And also the investors are saved from the task of keeping track of there investments, not only this since mutual funds allow to invest in diversified stocks it reduces the risk burden. Many companies today have schemes like balanced equity funds which help them to reduce the risk pattern for example tata balanced mutual fund, hdfc balance fund etc.And one of the major advantage of mutual funds is that an investor can invest with small amounts whenever he has corpus funds with him and also they can be redeemed easily as and when the investor wants if he is investing in open ended funds.
Today time is a big constraint for people, a few people have the time to follow shares and understand the volatilities involved in share market. It is rightly said that stock market is gamble. So people today want someone to look after there investments and suggest them regarding there investments. In this situation mutual funds come to their rescue.
Firstly a professional and qualified fund manager manages mutual funds. Though investors have the capacity and capability to Asses and understand a financial instrument but still an analytical and wise decision making capacity of a fund manager is very beneficial.
And also the investors are saved from the task of keeping track of there investments, not only this since mutual funds allow to invest in diversified stocks it reduces the risk burden. Many companies today have schemes like balanced equity funds which help them to reduce the risk pattern for example tata balanced mutual fund, hdfc balance fund etc.And one of the major advantage of mutual funds is that an investor can invest with small amounts whenever he has corpus funds with him and also they can be redeemed easily as and when the investor wants if he is investing in open ended funds.
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