Mutual Funds is one of the best investment instruments to create wealth over the long run.
What makes it good investment option:
Just about anyone can invest
Very significant.Just about anyone. Even for a sum of Rs 500, an investor starts investing in a mutual fund.
Fund Manager at the helm
Investors in mutual funds who don’t have specialization as well as time to manage their investments in equity markets can opt for mutual funds managed by professional fund managers and enjoy the appreciation of wealth over a long run.Generally, for novice investors, it is a difficult task to decide what stocks to buy, how much to buy and when to sell.
In case of mutual funds, professional fund manager manages your money. This is the person who decides what to buy for you, when to buy it and when to sell.
A mutual fund is able to diversify across several companies thus diversifying your investments. With a small investment in mutual funds, you can buy stocks in some of the top Indian companies through a mutual fund, which may not be possible to do as an individual investor.
Apart from ELSS, you can withdraw your money from a mutual fund on an immediate basis.
Under the current tax laws, you can get an annual income tax benefit of up to Rs. 1.50 Lakh if you invest in Equity Linked Savings Schemes, ELSS. However, the minimum term for these schemes is 3 years and you cannot withdraw your money before that time
ELSS Mutual funds thus can provide you tax benefits and at the same time generate substantial returns.