We have all had a share of new year’s resolutions at some point in our lives. Be it learning a new skill, improving a personal trait, or the most common, exercise to achieve the fitness goal. But let’s not forget, it is important to focus on maintaining our financial fitness too. That’s right. The well-being of our finance is as important as our physical and mental health. And Mutual Funds can play a significant role in maintaining this well-being. So, this new year, let’s make an investment resolution and aim to achieve financial fitness with mutual funds.
Here are five reasons why mutual funds investment could be one of the best new year resolution ideas:
1. Different funds for different goals
There is a wide range of mutual funds schemes available in the market, and you can find the most suitable option basis your investment goal, investment tenure and risk profile. For example, if your goal is to build a retirement corpus after 15 years, equity - oriented mutual funds can help you accumulate wealth. Similarly, debt mutual funds could be a suitable choice if your goal is just a year away such as car purchase or home renovation.
2. Professional management
Mutual funds are baskets of securities which are managed by professional fund managers. These professionals have relatively higher knowledge about financial markets and the economy in general. Their experience, combined with in-depth research and market analysis, can help investors make the most of markets and generate risk-optimised returns over time.
3. Easy-to-invest
Investing in mutual fund schemes is a simple and hassle-free process. Registration can also be done online through the website of the mutual fund house. Moreover, with a Systematic Investment Plan, you can even automate periodic payment of the fixed amount in the mutual fund scheme of your choice. Once the SIP is scheduled, the fixed amount gets automatically invested in the fund on the selected date.
4. Handy in times of need
Mutual funds are easy to access; therefore, withdrawing funds from the scheme can be easy and quick. Debt mutual funds that are relatively more liquid can be used to build a contingency fund that can come in handy in financial emergencies.
5. Safe and transparent investment
Mutual Fund investments are highly regulated in India, with a view to safeguard unitholders’ interests. Moreover, fund houses are bound to disclose fund-related information as mandated by regulations to unit holders periodically. This makes the monitoring of funds and your money easy. Therefore, mutual fund investments are relatively safer and more transparent options for investing your hard-earned money.
So, this new financial year, make an investment resolution to start the mutual fund journey and make the most of them to achieve your financial fitness goal.
Disclaimer:
The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The document has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. The sponsor, the Investment Manager, the Trustee or any of their directors, employees, associates or representatives (“entities & their associates”) do not assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such information. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Entities & their affiliates including persons involved in the preparation or issuance of this material shall not be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material. Recipient alone shall be fully responsible for any decision taken on the basis of this document.
Mutual Fund Investments are subject to market risks, read all the scheme related documents carefully.
