Mutual Funds
A mutual fund is a type of investment vehicle that pools money from many investors and invests it in a variety of securities, such as stocks, bonds, and money market instruments. Mutual funds are managed by professional investment managers who are responsible for selecting the securities that the fund invests in.
Why Invest in Mutual Funds?
Mutual Funds as an investment option comes with numerous advantages, some of which are listed below
Professional Management
Mutual fund investments are managed by professionals backed by large research teams. It eliminates the need for investors to conduct research and allocate assets.
Diversification
The money is invested in multiple securities, reducing the risk for investors. The underperformance of one will not affect the performance of the fund as a whole.
Tax Benefits
Investing in specific mutual fund schemes can provide a host of tax benefits and reduce your annual tax outgo.