Mutual Funds
Diversification
Spreads risk across various assets, reducing exposure to individual market fluctuations.
Liquidity
Easily buy and sell fund shares, providing flexibility to access invested capital quickly.
Professional Management
Expert fund managers make investment decisions, saving time and effort for investors.
Affordability
Allows investors with limited capital to access a diversified portfolio of investments.
Equity mutual funds invest primarily in stocks or equities. These funds carry varying levels of risk depending on the types of stocks they invest in.
Benefit’s
- Potential for high returns over the long term.
- Diversification across multiple stocks helps spread risk.
Multi-asset funds invest in a diversified portfolio comprising a mix of asset classes such as stocks, bonds, and commodities. They aim to balance risk and return by spreading investments across various
Benefit’s
- Offers diversification benefits across different asset classes.
- Provides flexibility to adapt to changing market conditions.
assets.
E.L.S.S. funds are a type of equity mutual fund that offers tax benefits under Section 80C of the Income Tax Act in India. These funds have a lock-in period of three years.
Benefit’s
- Tax benefits on investments up to a certain limit.
- Potential for capital appreciation along with tax savings.
Debt funds invest primarily in fixed-income securities such as government bonds, corporate bonds, and money market instruments. They are considered lower risk compared to equity funds.
Benefit’s
- Generally lower volatility compared to equity funds.
- Provide regular income through interest payments.
SIP involves investing a fixed amount regularly in a mutual fund scheme, while SWP allows investors to withdraw a fixed amount regularly from their mutual fund investments.
Benefit’s
- SIP helps in disciplined investing and takes advantage of rupee-cost averaging.
- SWP provides regular cash flows and flexibility in managing cash flow requirements.
