Today everybody are aware of various investment options. Infact, investors are aware of the pros and cons of risky investments like stock markets.
Yes, Stock Markets are volatile! No doubt about it! But if you choose safe route of investing indirectly in stock market through mutual funds, you will end-up enormous benefits.
Benefits of Investing in Mutual Funds–
- Mutual Funds are professionally managed
- They are cost-effective
- You can invest with as low as 500 rupees (minimum)
- There is no maximum limit for mutual sip, you can choose as per your convenience
- Mutual Funds can beat inflation in the long run
- Reduces volatility when invested for long term
- Mutual Fund sip works best in volatile conditions which is not possible in direct equity
- Helps to build compounding power to your investments
- No need to time the market
- You can continue with your work, no need to check stock prices frequently
- You can either renew or cancel sip whenever you want
- You can cease sip temporarily if your economic conditions are worsening
From the above, we can conclude that Mutual Funds are safest route to achieve your long term goals. If you are risk-averse investor, start small and after gaining confidence you can invest more