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Unknown but fascinating aspects of mutual funds

Mutual Funds

Looking to invest in mutual funds in India? You should take into account several little known but fascinating aspects of mutual funds. You can take a closer look at the possibilities of SIP Funds which minimize your risks along with examining larger mutual funds risks alongside. Here’s taking a look at a few things that you should keep in mind:

Mutual funds are not just tailored for market experts

Mutual funds in India are not only for expert investors. Even an average investor can start an SIP in India for investing in mutual funds. The growing possibilities and convenience linked to SIP Investment India have naturally made this a profitable avenue for regular citizens. Mutual funds are also suitable for people who are not as aware about details of securities and investment choices. These funds are managed professionally by expert fund managers post intensive market research and are greatly beneficial in turn. It is a cost-effective way to get professional fund management and common people may invest without added worries.

All mutual funds are not tailored for long-term results

Mutual fund performance is subjective and depends upon multiple factors. It all depends upon your own financial goals and horizon for investment. It depends on whether you will invest in long or short term funds. There are several short term or midterm funds which fulfill diverse purposes and objectives as well.

You will not always have to invest a sizable amount in mutual funds

You can simply start an online SIP investment in mutual funds. You do not have to always invest a sizable amount in these investment channels. You can start investing with a sum as low as Rs. 500 every month. In fact, you can even invest via a lump sum of only Rs. 5,000 or so or one-time investments of this amount. You can also subscribe additionally with a sum of Rs. 1,000 in most mutual fund

Mutual funds deploy investments in bond and stock markets along with money market instruments

Mutual funds deploy investments in bond markets, stock markets and money market instruments like commercial papers, treasury bills, collateral borrowing and lending obligations and certificate of deposit among other options. Many such instruments are unavailable for retail investors owing to higher ticket size for minimum order quantity and hence retail investors can readily take part in these investments via mutual fund plans.

It is not compulsory to hold mutual fund units in the demat mode unless it is an ETF (Exchange Traded Fund)

For other plans inclusive of close-ended schemes such as FMPs (Fixed Maturity Plans), it is completely up to the investor whether he/she wishes to hold units in the regular physical account statement or demat mode.

There are multiple types of mutual funds in the country. You should take financial advice and guidance before taking any final decision. Make your choice carefully while going through all available details alongside. These are some of the most interesting facts about mutual funds that help in demystifying them to a large extent.