Qualified professionals manage your money,but they are not alone. They have a research team that continuously analyses the performance and prospects of companies. Fund managers are in a better position to manage your investments and get higher returns.
Diversification lowers your risk of loss by spreading your money across various industries and geographic regions. It is a rare occasion when all stocks decline at the same time and in the same proportion.
As a small investor, you may find that it is not possible to buy shares of larger corporations. Mutual funds generally buy and sell securities in large volumes which allow investors to benefit from lower trading costs. You can invest with a minimum of Rs.500 in a Systematic Investment Plan.
The performance of a mutual fund is reviewed by various publications and rating agencies, making it easy for investors to compare funds. An investor is provided with regular updates, for example daily NAVs, as well as information on the fund’s holdings and the fund manager’s strategy.
Mutual funds offer a variety of schemes that will suit your needs over a lifetime. When you enter a new stage in your life, all you need to do is sit down with your financial advisor who will help you to rearrange your portfolio to suit your altered lifestyle.
with rupee-cost averaging, you invest a specific rupee amount at regular intervals regardless of the investment’s unit price. As a result, your money buys more units when the price is low and fewer units when the price is high, which can mean a lower average cost per unit over time.