Why Go For Mutual Fund Investment Plan?
                     Mutual Fund Investment Plan
Why Go For Mutual Fund Investment Plan?
Mutual funds give you the ability 
to easily invest in increasingly 
complicated financial markets. 
Mutual Funds could be Equity 
funds, Debt funds, Hybrid Funds 
or International FoF. A large part 
of the success of mutual funds is 
also the advantages they offer in 
terms of diversification, 
professional management and 
liquidity.
Mutual Fund 
Basics
Why Do People Buy Mutual Funds?
Mutual funds are a popular choice among investors because they generally offer the 
following features:
 Professional Management - The fund managers do the research for you. They select 
the securities and monitor the performance.
 Diversification - or “Don’t put all your eggs in one basket.” Mutual funds typically 
invest in a range of companies and industries. This helps to lower your risk if one 
company fails.
 Affordability -  Most mutual funds set a relatively low dollar amount for initial 
investment and subsequent purchases.
 Liquidity - Mutual fund investors can easily redeem their shares at any time, for the 
current net asset value (NAV) plus any redemption fees.
Mutual Funds
Advantages of Mutual Fund
• Systematiic  iinvestment  pllans,  systematiic  wiithdrawall  pllans  &  diiviidend  
Fllexiibiilliitt reiinvestment.
y
• Avaiillablle  iin  uniits  so  even  a  smallll  iinvestor  can  benefiit  from  iits  iinvestment  
Affffordab strategy
iilliitty
Pottenttiia • The fund managers who iidentiify opportuniitiies for your iinvestments to fllouriish
ll  off  
retturn
• The  benefiits  of  scalle  iin  brokerage,  custodiiall  and  other  fees  transllate  iinto  llower  
Low  costs  for  iinvestors
Costts
•
Regullatto The  sector  iis  regullated  to  safeguard  the  iinvestor''s  iinterests
ry
What are the benefits and risks of mutual funds?
Mutual funds offer professional investment management and potential diversification. They also offer 
three ways to earn money:
 Dividend Payments - A fund may earn income from dividends on stock or interest on bonds. The fund 
then pays the shareholders nearly all the income, less expenses.
 Capital Gains Distributions - The price of the securities in a fund may increase. When a fund sells a 
security that has increased in price, the fund has a capital gain. At the end of the year, the fund 
distributes these capital gains, minus any capital losses, to investors.
 Increased NAV - If the market value of a fund’s portfolio increases, after deducting expenses, then 
the value of the fund and its shares increases. The higher NAV reflects the higher value of your 
investment
All funds carry some level of risk. With mutual funds, you may lose some or all of the money you invest 
because the securities held by a fund can go down in value. Dividends or interest payments may also 
change as market conditions change.
A fund’s past performance is not as important as you might think because past performance does not 
predict future returns. But past performance can tell you how volatile or stable a fund has been over a 
period of time. The more volatile the fund, the higher the investment risk.
Reasons Why You Should Invest In Mutual Fund
When it comes to investment decisions, it’s better to leave it to the experts. A good investment advisor 
can help you maximise returns and minimise risks. So from the expert point of view, the best option for 
you as an investor to achieve your personal financial goals is mutual funds. Here are seven advantages 
of mutual funds
 Diversified Portfolio
 There’s a Fund for Everyone
 Benefit from High Liquidity
 Invest in a Lumpsum or through a SIP
 You can Invest in Small Amounts
 Cost-Efficient
 Reduce your Tax Liability
Click here, to know more about mutual fund investment plan
Thank You !!