What are the advantages of investing in mutual funds?The following are the advantages of investing in mutual funds:
Professional Management: Your money is managed by professionals who have the experience and resources to thoroughly analyse the economy and financial markets, and spot good opportunities.
Diversification: With smaller amounts, you can achieve a higher degree of diversification and reduce your risk.
Liquidity and Convenience: Investing and getting back your money is easy. Also, there is very little paper work, and it is very easy to track and monitor your investments.
Tax Benefits: Some mutual fund schemes offer you tax deductions under particular sections of Income Tax Act. In addition, your returns from mutual funds (dividends and capital appreciation) are also eligible for favourable tax treatment.
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