Are Mutual Funds Safe?

Whenever we open our TV sets and see a commercial of a mutual fund, we hear a person speaking at a psychotic speed “Mutual fund investments are subject to market risks. Please read the offer documents carefully before investing”. This one statement would intrigue you and put up a question in your mind “Is investing in mutual funds safe?”

7 reasons why you should invest in Mutual Funds

  • Professionally Managed: Mutual funds are managed by experts through thorough research in a safe and secure manner, thus, keeping your money safe at all stages.
  • Diversified Portfolio: The Mutual funds hedge or nullify the effects of losses on one investment with profits on another, exposing low risk to you.
  • Liquid: You can withdraw your investments at any time you want, unless the fund has a specific lock-in period, thus, ensuring crystal liquidity.
  • Flexibility: An investor can hive off the struggle of issuing a cheque every month by facilitating ECS on your bank account, thus, enabling you to invest while you rest.
  • High Returns:You continue to reap the benefits through inflation-adjusted so that you don’t feel the pinch in your old age.
  • Low transaction cost: The costs are low when compared to a direct investment in a capital market.
  • Government Regulated: The SEBI continuously monitors any malicious activities and ensures bonafide investments in the market, thus, keeping you and your money in safe hands.

 

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