Mutual Funds
Beat Inflation
Mutual funds are capable of giving high returns in long terms. An average mutual fund scheme easily beats inflation in longer run and a good scheme can give far superior returns.
Safe and Transparent
Indian Mutual Fund industry is one of the best regulated in the world. They are governed by the strict guidelines laid down by SEBI(Securities & Exchange Board of India). They have to give periodic disclosures and information to investors. They operate within the strict regulation by SEBI. Hence it can be treated as very transparent and safe.
Expertise (Fund Managers)
Fund managed by expert fund managers who have knowledge and experience in the field and they are dedicated for the same. They make investments decisions after doing intensive research and analysis of a company & industry. (Individuals generally don’t have time and resources to do research hence best option is to let MF manage your investments)
Liquidity
Mutual funds are highly liquid and can encash easily. Generally one can get the fund in less than 4 to 5 working days.
Diversification
As general saying goes - all eggs should not be kept in one basket, it is very important to have a diversified portfolio. Mutual Fund Investments are diversified into many companies & sectors which make our investments safer and for consistent growth prospects. Diversifying is usually not done / not possible by small investors as individual portfolio needs huge fund to have well diversification but Mutual Fund being a pooled fund, the same is possible.
Tax Efficient
Mutual fund is highly tax efficient. Equity Mutual Funds have Zero long-term capital gain if it is sold after one year and even short-term capital gain (less than one year) is also lower comparatively. Apart from all this, one can use this for tax saving under section 8CCC thru specified ELSS Mutual fund schemes.
Cost Effective
Mutual Funds are much cheaper compared to direct exposure to capital market since one does not need demat account, annual charge to maintain account, charges imposed on demat holdings, stamp duty on transaction are not levied. Moreover Through Mutual Fund route you are getting best expert service with very low cost.
SIP
Systematic investment plan SIP will help to create long terms wealth creation by investing small sum regularly. This will not only help to create wealth it will help a disciplined approach. For details refer SIP section
At Amulya out role is to analyse your need and advice and help you to invest as per your need and requirements