The best way to invest-Mutual Fund
Mutual Fund is a pool of money contributed by multiple investors which is further invested and managed by a professional fund manager. these investments are made in a range of instruments including stocs, bonds and other asset classes. A diversified and balanced form of investment, mutual funds allow investors to earn regular returns and also offer a liquidity in case of urgency.
The Main advantage of mutual funds are:
Higher Return:
Mutual funds have the potential to give higher returns, when compared to traditional investing options such as bank FDs, NSCs, PPF etc. The returns earned from most funds are exempt from taxes (equity) or offer attractive tax benefits (debt), when held for longer duration. You can build a sizeable amount investing in mutual funds, and benefit from the effect of compounding.Flexibility:
Mutual funds allow you to rebalance your portfolio to suit your needs. Depending upon your risk appetite, age and income, you have the flexibility to shift between equity and debt mutual funds.Liquidity:
Mutual fund investments can be redeemed as and when needed, providing easy liquidity. They come with little or no lock-in periods.Now a days there is a lot of mutual funds in the market but we must be carefull before investing.