Mutual funds are currently a popular investment choice and you should consider buying them due to several important reasons. Some of them are listed below:

Professional Management: Not everyone is well-versed with stock markets. The fund managers do the required research on your behalf. They select the securities to invest in and also monitors their performance.

Diversification: Mutual funds allow you to buy a bit of all kind of investments. This is possible because your investment is combined with money from other investors, which is then put into a pool of investments. Hence, the portfolio of the investor gets diversified via a single mutual fund investment. Otherwise, you’d have to own individual stocks or bonds.

Affordability: Most mutual funds have a pretty low minimum investment amount. You can purchase a mutual fund at an amount as low as INR 500/ month if you opt for best SIP plans.

Liquidity: If you have invested in mutual funds, then you can easily redeem your shares at any point of point for the current NAV plus the redemption fees (if any).

Wide variety to choose from: Mutual funds have something for everybody. Everybody’s needs are different and you’ll surely find something that suits your needs. A young investor can take greater risk and so they can invest in an equity fund.

Also Read: Three Money Habits To Be Learned From A Self-Made Millionaire

5 reasons why you should buy Mutual Funds?

What is Lorem Ipsum? Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

Why do we use it? It is a long-established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem Ipsum will uncover many websites still in their infancy. Various versions have evolved over the years, sometimes by accident, sometimes on purpose (injected humour and the like).

Where does it come from? Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old. Richard McClintock, a Latin professor at Hampden-Sydney College in Virginia, looked up one of the more obscure Latin words, consectetur, from a Lorem Ipsum passage, and going through the cites of the word in classical literature, discovered the undoubtable source. Lorem Ipsum comes from sections 1.10.32 and 1.10.33 of “de Finibus Bonorum et Malorum” (The Extremes of Good and Evil) by Cicero, written in 45 BC. This book is a treatise on the theory of ethics, very popular during the Renaissance. The first line of Lorem Ipsum, “Lorem ipsum dolor sit amet..”, comes from a line in section 1.10.32.

The standard chunk of Lorem Ipsum used since the 1500s is reproduced below for those interested. Sections 1.10.32 and 1.10.33 from “de Finibus Bonorum et Malorum” by Cicero are also reproduced in their exact original form, accompanied by English versions from the 1914 translation by H. Rackham.

2 thoughts on “5 reasons why you should buy Mutual Funds?”

  1. Pingback: Smart Tips for Higher Returns with SIP Investment Plan

  2. Pingback: The Basic Difference between Mutual Funds and Fixed Income Investments

Comments are closed.

No posts found!