Budget 2014: Why mutual funds are a safe investment option?

For investors looking for sage investment to see their money grow – they just need to choose the right fund.

Updated: August 19, 2014 9:56 PM IST

By Editorial

Budget 2014: Why mutual funds are a safe investment option?

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Mutual funds have become one of the preferred investment option for people who can part with a small sum every month. A regular investment will see the corpus grow over years and come in handy when you need the funds the most. However, investment in mutual funds is not without risk. It all comes down to the scheme you have chosen to invest in.

We list the benefits of investing in mutual funds:

Low cost and convenience

First and foremost what makes it attractive to even a first time investor is the ease of investment. Add to it a small amount like Rs 500 to start with. For investors looking for sage investment to see their money grow – they just need to choose the right fund. All the mutual funds have professionals who keep tracking the sector and analyse the investment on a periodical basis. Mutual funds give you the option of investing in diverse sectors with just one scheme. You just have to decide your risk apetite.

Transparent and easy liquidity

Mutual funds is perhaps one of the most safe transparent investment option available to investors. The fund houses updates the investors regularly on how his investments are doing in the market and alert him if they feel he should switch to another scheme for better returns. They also give the option to review the schemes and change as per their risk apetite.

Service

The fund houses have experts who help you choose the best investment option. They understand the investment purpose and based on that suggest schemes to invest. This is in total contrast to other options wherein the help is not forthcoming. The fund managers ensure your investment gets the best return and help you choose schemes.

In nutshell mutual fund investment remains a good option if you are not ready for ups and downs of the market and want to opt for a safer investment option.

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