kuldeepofs-blog

[kuldeepofs-blog]

Our today’s financial planning is the building block of our future finance and mutual fund software helps to manage them all with ease!

[kuldeepofs-blog]

Why Should You Put Your Money in Mutual Funds?

Before deep diving why should your money to mutual funds first we need to know what exactly a mutual fund is?

Mutual Fund:

Mutual funds are professionally managed funds that collects money from many investors to invest in stock market, bonds and other assets. They are usually organized by an advisory firm for the purpose of specific investment goal. With this one can buy stock of the company and can become a part of the owner.

Types of Mutual Funds: There are largely three types of Mutual Funds.

Equity Funds These invest in shares of the companies. The main purpose of this is wealth creation. These funds have potential to generate higher returns and are best for long-term investments.

Fixed Income Funds or Bonds These invest in fixed income securities like Government Bonds, Commercial Papers and Debentures etc. These are relatively safer investments as they provide stable and steady income.

Hybrid Funds These invest in a mix of equity and bonds to yield better returns. These type of funds are meant to diversify away a little of your equity risk by exposure to debt, while maintaining decent returns as well.

Coming back to the point what is the need of mutual fund and why should you put your hard earned money to mutual funds?

Higher Returns Mutual funds are the best option to invest in for higher returns with minimum risk that traditional investment options. And investing in equities through mutual funds is an excellent way to enjoy the higher returns, but with much lesser risk.

Professionally Managed Mutual funds are professionally managed by fund managers or certified financial advisors whose everyday job is to track the markets and manage investments. They use mutual fund software to keep your portfolio updated. They spend hours analyzing the performance of companies and advise you which would give you better returns. They know when to buy funds, and more importantly when to sell them.

Small or No Lock-in Period Most of the traditional investments instruments come with long lock-in periods which make it hard for you to take your money out in case of emergencies where you need instant money. But in mutual funds, there is small or no lock-in period. You can take your money out when you need it. Experts recommend if funds are kept for at least three years or more than that (until your goal of investment in accomplished) then you will really get good returns.

Convenience The investing in mutual funds is very easy. The whole process is offered online by many firms in the industry. Mutual funds distributors or IFAs use online mutual fund software which will provide you the complete insight of your investment. You can easily track your investment and can get complete report of your investment even on your mobile within seconds.