Invest in Mutual Funds

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It’s important for investors to carefully consider their investment objectives (their financial goals), risk tolerance, and investment time horizon while choosing funds. Before you proceed you need to be KYC compliant. Check below.

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Mutual funds pool money from many investors to invest in a diversified portfolio of stocks, bonds, money market instruments, and other securities. These funds are managed by professional portfolio managers of Asset Management Companies, who make investment decisions on behalf of the investors to provide them with diversification, professional management, and potential capital appreciation. Following features of mutual funds would justify why you should invest in mutual funds.

Diversification

Mutual funds invest in a variety of securities, which helps spread the risk. Diversification can reduce the negative impact of any individual security on the overall portfolio.

Professional Management

Fund managers analyze market trends, economic conditions, and individual securities and are responsible for making investment decisions based on the fund’s objectives.

Liquidity

You can buy or sell mutual funds on any business day at the net asset value (NAV) price. This allows investors with liquidity to easily convert their investments into cash.

Affordability

Mutual funds allow investors to participate in a diversified portfolio with a relatively small investment. Investors can make additional investments regularly as per their affordability.

Variety of Funds

Mutual funds include equity funds (invest in stocks), money market funds, balanced funds (mix of stocks & bonds). You have to choose your fund based on your goals, risk tolerance, and time horizon.

Regulation

financial authorities in the countries where they operate regulates Mutual funds. Regulations are in place to protect investors and ensure transparency.

Transparency

Mutual funds are disclose their holdings and performance regularly. This transparency helps investors make informed decisions about their investments.

Fees and Expenses

Mutual funds may charge fees and managing expenses. Expense ratio covers the fund’s operating expenses. Sales loads are fees associated with buying or selling fund shares.

Invest in Mutual Funds. Distributor ARN-114400

Save Tax

E.L.S.S investments are eligible for deduction in taxable income of up to ₹1,50,000 under section 80C. E.L.S.S. have the shortest lock-in period (3 years) with possibility to earn higher returns compared to other tax-saving instruments.

DISCLAIMER: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of distributable surplus. Investors are requested to review the prospectus carefully and obtain expert professional advice with regard to specific legal, tax, and financial implications of the investment/participation in the scheme.

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Invest in Mutual Funds. Distributor ARN-114400

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