India is an emerging economy that provides stability as well as growth. The advantages of mutual fund
investment in India are many. Some of them are as follows –
Manage your funds online – Mutual fund KYC (Know Your Client) and applications forms can easily be downloaded from the websites of different mutual funds companies, and even the verification process can get done online through video conferencing.
Since you cannot invest in mutual funds in foreign currency and need to open an NRE/NRO account to do so, digital platforms like North Loop
make the entire process seamless and hassle-free. With the option of investing online, you can track and manage your mutual funds from wherever you are and receive regular account statements (CAS) through emails.
Moreover, asset management companies (AMCs) post portfolios disclosures online frequently to ensure that investors like you stay informed and updated.
Exposure to expert-managed portfolios– Mutual funds
are one of the most popular investment options in India because of their exposure to professionally managed portfolios of equities, bonds and other securities.
When investing in mutual funds, you get allotted with fund units based on the amount spent and professional fund managers manage this pooled investment that ensures you earn optimum returns
High Return – There are generally three types of mutual funds that is equity, debt and hybrid. While equity mutual funds do come with higher risks compared to other investment options, say bank fixed deposits, but they also possess scope to provide higher returns as they are completely market-linked.
If the performance of the stock market goes up, investments in equity mutual funds can give high returns.
On the other hand, if you are a risk-averse investor, you can invest in debt mutual funds that are similar to fixed deposits
in terms of their return as well as risk profile as they primarily invest in fixed-income instruments.
High liquidity – As compared to investment options like bank fixed deposits
which get locked-in for a fixed tenure, mutual funds offer considerably higher liquidity, especially if they fall in the category of debt mutual funds. That is because debt mutual funds invest in short-term financial instruments like treasury bills, commercial papers, and other forms of debt securities that come with short maturity periods of around 91 days. Most importantly, debt mutual funds do not come with a lock-in condition which means that you can withdraw your money whenever you want to.