The 7th of every month has been declared Mutual Fund Day, a day to think about your future, and to take the smart step towards securing it. We believe, while it’s great to enjoy your present, it’s equally important, if not more, to financially secure your future.  Take a vow this 7th to invest in mutual funds for a richer, more fulfilling future. And when it comes to mutual funds, FundsIndia is always the right option!

What are mutual funds?

A mutual fund is a pool of money managed by a professional Fund Manager.It collects money from a number of investors who share a common investment objective and invests the same in equities, bonds, money market instruments and/or other securities.

Why should you invest in mutual funds?

Mutual funds are one of the best ways to earn higher returns. They are managed by experts who spread your investments across different asset classes and actively monitor them to deliver the best returns.

What are the benefits of investing in mutual funds?

So many! But to name a few,

Higher Returns: Mutual funds have the potential to give higher returns, when compared to traditional investing options such as bank FDs, NSCs, PPF etc. The returns earned from most funds are exempt from taxes (equity) or offer attractive tax benefits (debt), when held for longer duration. You can build a sizeable amount investing in mutual funds, and benefit from the effect of compounding.

Flexibility: Mutual funds allow you to rebalance your portfolio to suit your needs. Depending upon your risk appetite, age and income, you have the flexibility to shift between equity and debt mutual funds.

Liquidity: Mutual fund investments can be redeemed as and when needed, providing easy liquidity. They come with little or no lock-in periods.

Why do we need a dedicated day to invest every month in mutual funds?

Setting up a Systematic investment plan (SIP) is the most popular method of investing for retail investors. In this method of investing, an investor commits to investing a certain amount of money on one or more dates every month regardless of the market condition. For example, you could choose to invest Rs. 5000 every month on the 7th in a particular fund.

The advantage of investing in this manner is that it takes the market timing decision making out of the investor’s hands. The investor does not have to think whether the market is high or low or whether it is a proper time to invest. Also, the regular investing instils a sense of discipline to the process. Due to these factors, the average cost of investing for the investments made tend to be lower than typical point in time investment methods. Also, it enables investors to invest small sums of money over a long period of time turning their monthly savings into productive investments. In short, SIP is a vehicle for disciplined, regular, long-term investment on an auto pilot mode.

At FundsIndia, we are big supporters of systematic investments, and we have created many services around this method of investing. Apart from the plain vanilla Regular SIP, we have variants like Flexi SIP, Alert SIP, Step-up SIP, and  Portfolio SIP that could suit the requirements of different types of investors. We also have advanced techniques such as Value averaging investment methods.

How do you get started?

Easy! Just sign up for a free-for-life FundsIndia account and let the experts do the work for you. FundsIndia is India's friendliest investment platform. We provide our investors easy access to a wide range of investment products like mutual funds from leading fund houses in India, corporate osits, stocks and much more in one convenient online location. In short, we are your one stop shop to build wealth!