Admin

14/11/2022

.

5 mins read

Mutual Funds Facts

7 Facts About Mutual Funds That Will Impress Your Friends "Mutual Fund Sahi Hain" Almost everyone in the country has heard the above line in advertisements.

Mutual funds are professionally managed funds that diversify the portfolio and aim to provide reasonable returns per the scheme's objectives. Mutual funds are available in various types per the investor's risk appetite and time horizon.

Here we will be looking into some facts about mutual funds.

Fact 1. All you need is Rs. 500 Mutual funds are affordable, accessible financial products. Anyone can start investing with Rs.500 per month through a Systematic Investment Plan (SIP). The low minimum amount has made it easier for people to start investing a fixed amount every month.

Fact 2. Let the magic of compounding happen Compounding is when interests or gains are reinvested to generate additional interest or gains over time. Compounding does its magic with consistent investment over the long-term period.

SIP is an excellent tool for beginners and young investors to start their investment journey. The magic of compounding occurs when the investments are kept untouched for a long time.

Fact 3. Your money is in the expert's hand Mutual funds are the pool of funds deposited by investors that experts manage in the matter. Experts analyse the various investment opportunities and invest funds to create a portfolio to generate reasonable returns per the scheme's objectives.

Fact 4. Diversification and liquidity Mutual funds are a great way to diversify your portfolio. Mutual Funds offer the incredible benefit of diversification by investing in different asset classes and sectors of a particular asset class. This helps to minimise risk.

Moreover, one can quickly redeem their money from their mutual fund folio and get it credited to the bank account.

Fact 5. Get a loan against mutual fund units Did you know that you can pledge your mutual fund units to get a loan from a bank?

Getting a loan against the units of mutual funds you hold is easy, and a few banks offer it to process digitally. The feature enables you to pledge assets for Mutual Funds online and get an overdraft limit in minutes!

By pledging your mutual fund units as security, you can avail loan against mutual funds, whether debt, hybrid or equity mutual funds, at any bank or non-banking financial company (NBFC). The benefit of a loan against Mutual Funds is that your units do not need to be redeemed prematurely. You can keep your systematic investment plan (SIP) unchanged.

Fact 6. The investment horizon depends on the goal The investment must be goal-driven, and by using the goal factor, you can decide the investment period. The same is the case with mutual fund investment.

So, if you have a short-term goal, you can invest in a debt fund per your time horizon. And, in the case of a long-term goal, you can invest in equity funds that have the potential to give good returns over the longer-term horizon.

Fact 7: You don’t need a Demat account to invest in mutual funds Unlike investing in the stock market, you don’t need a Demat account to invest in mutual funds. When you complete the investment formalities, and the fund house opens a mutual fund folio where investment units and the investment amount are credited. When you redeem from mutual funds, the units and the investment amount gets reduced from your investment account.

Conclusion Over the last decade, mutual funds have gained immense popularity in India among all people and investors. Mutual funds are the most favoured investment option for beginner and retail investors.

Mutual funds are a simple, accessible yet powerful tool to create wealth and reach financial milestones. Mutual funds allow investment in various asset classes per your risk tolerance and time horizon. Start your investment journey with a small step like mutual fund investing through SIP.

This blog is purely for educational purposes and not to be treated as personal advice. Mutual funds are subject to market risks, read all scheme-related documents carefully.

Other Blogs

20/6/2024

Mutual Fund Distributors in Vadodara: Empowering Your Financial Future with CKredence Wealth

5 mins

In the bustling city of Vadodara, where financial opportunities abound, securing your financial future is paramount. With the myriad investment option...

20/6/2024

Empower Your Finances with CKredence Wealth Top Mutual Fund Distributors in Pune

5 mins

In the bustling city of Pune, navigating the world of investments and finances can be a daunting task. However, with the right guidance and expertise,...

20/6/2024

Top Mutual Fund Distributors in Mumbai CKredence Wealth

5 mins

Unlocking the Best Mutual Fund Distributors in Mumbai with CKredence WealthAre you ready to delve into the world of mutual fund investments but unsu...

Ckredence Wealth © 2022

Surat (Head office)
B 101/106, Tirupati Plaza, Near Collector Office, Athwagate, Surat 395001, Gujarat, India. T 0261 - 4084444
Mumbai Office
A/6, Ground Floor, Jain Society, Jitendra Road, Malad (East), Mumbai 400097, Maharashtra, India. M +91 98205 72872

Ckredence Wealth Management Pvt Ltd-

CIN: U67120GJ2001PTC039294

Ckredence Investment Services Pvt Ltd.-

CIN: U67120GJ2005PTC045572

Chirag Financial Services -

REGN NO: GUJ/SRT/(17) – 40682

Contact Us

Info Email:
media@ckredencewealth.com

Compliance Email:
compliance@ckredencewealth.com

Grievance Email:
grievances@ckredencewealth.com

Contact No:
0261-4084412

TwitterLinkedInYouTubeInstagramTelegram

Related Links

AMFISEBISCORESSMART ODRSMART ODR SEBI CircularBSEINDIANSEINDIA

Info

AMFI Regd MF Distributor

ARN - 52902

Date of initial reg.

20-09-2007

Current Validity of ARN.

19-09-2024

RIA SEBI Regn No.

INA000016588

PMS SEBI Regn No.

INP000007164

SEBI Regn No.

AP0106360135292

Developed by: