1.Mutual funds offer the benefits of diversification.
2.Through mutual funds, you outsource the task of managing your funds to a professional manager, who ensures your funds are invested in the right place as per risk appetite.
3.Mutual funds are highly liquid. You can sell your units freely and quickly, if you have opted for open-ended mutual funds.
4.By investing in mutual funds, you save broker fees, commissions, professional management fees, and so on. Mutual funds charge little to manage your funds.
5.Most mutual funds are tax-efficient. Tax on LTCG (Long-term Capital Gains) on equity-oriented mutual funds, are Nil up to 1 Lakh a year. In case of debt funds, LTCG only applies if you hold them for 3 years and you enjoy the indexation benefit. ELSS funds are exempt under Section 80C up to a maximum limit of Rs 1.5 Lakh a year.
6.You can start by investing an amount as low as Rs 500 via SIPs.
7.With Systematic Investment Plans or SIPs, your money automatically gets debited from your bank account towards mutual fund investments.
8.AMCs are governed by SEBI. Hence, they are safe and transparent.
9.You may either choose to invest in Mutual Funds through SIPs or as a lump sum.