Reliable investments through Mutual Funds
Mutual funds are always considered a safe and secure means of investment. One of the top reasons to invest in mutual funds is that it is managed by experts and people who are aware of the current happenings in the market. SEBI regulations require mutual fund distributors to clear their exam and be trained in the field. With expertise and sound advice from people who are constantly watching market trends, mutual funds make a sound investment. Here’s what you need to know about this much in-demand form of investment.
Benefits of Mutual Fund Investments
There are several advantages of investing in a mutual fund. You get to invest in diverse products such as gold, debt, and equity which also reduces the risk you are undertaking. Bajaj Finserv offers you Mutual Funds that comprise of shares, debt securities and more, all designed to give you good returns and minimize risk.
Mutual funds give you liquidity which means you have access to your assets any time you need them. In times of emergencies, you can use these investments to get a loan. The cost involved in mutual funds is lower as these investments work in bulk. At any given point, you can take out a part or entire sum of your mutual fund and reinvest. Alternately, you can reinvest the profits you make for greater returns.
Risks Involved in Mutual Funds
On the flip side, there are certain disadvantages of investing in a mutual fund that cannot be ignored. They are unpredictable because certain mutual funds include investment avenues like futures and options that do carry a higher level of risk. The cost involved will also be high if you opt for an aggressive fund option. There are also tax payments involved in mutual funds. Because your fund manager decides what to invest in, you do not have sole control over the mutual fund. Another disadvantage is that a mutual fund lacks an insurance cover. If you are looking for something else, Bajaj Finserv also has the option of Fixed Deposit with six flexible tenors.
Mutual Fund Application Simplified
Before you apply for a mutual fund, have all the necessary documents ready. Keep copies of bank statements and proofs. You will also need a copy of your PAN card. To meet the mutual funds eligibility criteria, you need to be a resident of India. For NRIs, full repatriation is necessary. If you are a trustee of a charitable organization, you are also eligible to invest in mutual funds. Any International Multilateral Agencies that are approved by the government are allowed to invest.
Bajaj Finserv provides you a wide variety of mutual funds to choose from with features like low transaction cost, liquidity, diversification, and transparency.