Saving for the future has always been a necessity. The ever-growing inflation in today’s world has made it more important to save than it had been ever before.
The growth of inflation is shooting up so fast that just saving is not enough. Investing wisely to take care of the long-term and short-term goals is the mantra to ensure that you meet the demon of inflation.
Fortunately, there are a plethora of instruments available for investment, but sadly very few which can really break the barrier of inflation. In such a scenario, one of the most integral tools of investment is mutual funds.
What are Mutual Funds:
A mutual fund is a collective pool of money collected from a number of investors and managed by a professional Fund Manager. These funds are managed by professional fund managers who manage the funds of the investors to invest in equities, debt instruments, bonds or other securities. The people who invest in a particular fund generally share a common investment objective.
Why to invest in Mutual Funds:
Since the money invested in Mutual Funds is managed by experts, it is one of the best ways to earn higher returns as compared to other forms of investment. The expert fund managers make sure that the total investment is spread across different asset classes and also actively monitor them so that the investors get the best results.
What are the benefits of investing in Mutual Funds:
The three cardinal benefits of investing in Mutual funds are higher returns, flexibility and liquidity.
With the various options available to an investor to choose between equity, debt and balanced funds based on the investor’s risk appetite, Mutual Funds offer the flexibility which may not be available in any other forms of investment. As the risk taking ability of the investor keeps changing as per the changing age and income, they have the flexibility to switch between different types of funds at almost negligible or no cost.
With hardly any lock-in period for redemption of the investments in Mutual Funds, it is perhaps one of the most liquid options of investment. The investors have to the option to redeem the funds fully or partially as and when the funds are needed for any contingency.
The returns from Mutual Funds are totally tax free if they are equity linked or the investments in the Funds offer attractive tax benefits if they are debt linked if they are held for a longer period as specified under the provisions of the tax laws. With a potential to give much higher returns as compared to the traditional investments options, the benefit of compounding if remained invested for a longer period, the investment in Mutual Funds help in building up a sizeable corpus.
The dedicated Mutual Funds Day:
Systematic Investment is one of the keys of investing wisely since it not only instilling a sense of discipline but also spreads the average cost of investment thus making it lower than the typical point of investment methods.
Enabling the investors to invest small sums of money over long period of time and also easing out the requirement of taking market timing decisions are other benefits of systematic investment.
The 7th of every month has been declared as Mutual Fund Day, the day dedicated to think about securing your future and taking a vow to invest in Mutual Funds for securing a richer future.
Suggesting a Fund for a Friend:
Through the Mutual Fund Day, Reliance Mutual Fund aims to reach out to all the investors in India, to build awareness and consideration towards Mutual Fund, so as to help investors to fulfill their dreams by investing in the asset class of their choice.
What better way to build the awareness of wise investment than to suggest the most beneficial form of investment to our friends and relations about whom we care. Fund For A Friend is an amazing initiative by Reliance Mutual Fund wherein we can log in to the Facebook page and suggest the type of funds that our friend would be interested in based on our understanding of his risk taking appetite.
Let’s get investing.
It’s never too early to start investing and every moment of delay is opportunity lost. So let us all take a vow to invest systematically on the #MFDaysOn7th and also suggest and recommend our friends to do so. Because Day In or Day Out, it is always a MF Day out!