Usually when you save and invest, it would be for any of the following reasons:
- Income Generation
- Capital Appreciation
- Capital Preservation
Investing is very individualistic in nature. Since your needs and desires are specific to you, what works for you may not work for someone else. The world of investments is constantly evolving and innovating, leaving prospective investors confused.
FundU is an investment product service which selects the right mutual fund product for your specific financial life goal. Whichever stage of your life you are in, we can help you select the right mutual fund product for your specific financial life goal.
Did you think that investing in mutual funds is all about pooling money to invest only in the equity markets? Below are the various types of mutual funds that you could choose from:-
- Equity funds
- Debt funds
- Liquid funds
- Hybrid or balanced funds
- Gold funds
So, you may ask why only Mutual funds?
Mutual funds are flexible: Investment can be made in various schemes investing in money market instruments to corporate bonds to equities. The minimum investment amounts can be as low as Rs.500 with no upper limit. Invested funds can received with 1 to 5 working days depending on the scheme you have invested in. Also there is no charge for maintaining your folio.
Mutual funds are liquid: Liquidity is all about having fast access to your invested money. In open ended mutual funds you can get back your money between 1 to 3 working days depending on the scheme you have invested in.
Mutual funds are transparent and regulated: The money in mutual funds is managed by an experienced professional who keeps looking out for the best opportunities to invest. Besides, the mutual funds publish a monthly factsheet which basically lists out all the important facts that you need to know about the scheme you are invested in. The NAV of the scheme is published on the AMFI website every day. Mutual funds are regulated by the Capital Markets Regulator, the Securities and Exchange Board of India (SEBI).
Mutual funds help you diversify: The different category of mutual funds help you diversify your investments across equities, money market instruments, Corporate bonds, Government Securities etc. Also within a particular category, different securities help you maintain optimum diversification.
Mutual funds help you reduce transaction cost: Since many people pool their savings to invest in the mutual fund scheme, you benefit from a lower transaction costs as compared to what you would have been levied if you would have invested the sum directly into the equity markets.