"ADVANTAGES OF INVESTING IN MUTUAL FUND"


 Mutual fund have been an untouched sector for soo long but it has gain a growth as investors are now becoming aware of it due to promotion and need of investment for future income growth.

Mutual fund is best for those investors who do not have knowledge of the share market, but wish to do investment. Mutual Fund is considered to be a great
source for saving and to increase the investment money. It is considered to be an investment opportunity for retail investors from short to long run (depends
on investors).



Future is uncertain and in such a case there is always a need to do a research to understand the benefits of investment. So, here are some benefits or advantages of doing investment in mutual fund.

1. Management of funds through professionals- Mutual fund are managed by professional managers or fund manager who have skills,knowledge and experience in the field and also they invest according to the investors risk taking capacity and requirement of investor which give better return to the investors.

2. Portfolio management- It refers to investment of funds in different sector or different stock. Mutual fund allows investment in different shares, bonds which help in reduction of risk in the portfolio. One equity fund have 35 to 40 stock and 25 to 30 bond and other securities which offer a wide variety of options to the investors.

3. Liquidity- Open ended funds offer liquidity to investors in which they can easily withdraw their amount at any time without any fees, this encourages investors to invest and withdraw amount at any time and it also provides flexibility to investors.

4. Convinent option- mutual fund offer SWP (systematic withdrawal plan) and STP (systematic transfer plan) to the investors through SWP investors can withdraw fixed amount at a fixed date and the amount is deposited in the investor\"s bank account. Investor can start SWP if minimum investment balance in the mutual fund scheme is Rs. 25000.

STP allows investors to transfer the amount to the scheme of the same fund house the minimum STP depends on the fund scheme and fund it can start from Rs. 1000 and has no specific upper limit


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