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Personal finance -http://www.fintotal.com Title : Benefits of investing in mutual funds

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Meta description: This article briefly states the benefits of investing in mutual funds compared to fixed deposits and direct equity.

Snippet: Earlier we saw that investing through mutual funds can be more beneficial than directly investing in shares or fixed deposits. How is a mutual fund more beneficial than investing directly in shares? You need not whack your brains: Investing in shares may be Latin and Greek to you. Investing in shares requires knowledge and time. If you don’t know to drive you appoint a driver! That’s exactly is the job a mutual fund does for you. They will do all the driving and you can sit back and enjoy the benefits of stock investing. Flexibility: The minimum amount can be as low as Rs 500. You can invest in weekly/monthly/quarterly/yearly or on one time basis. In most of the mutual funds you can invest anytime and withdraw any time. How is a mutual fund more beneficial than investing directly in fixed deposits? Better returns: The returns in a mutual fund can be a bit higher than your bank savings/fixed deposit. Assume your bank fixed deposit is giving you 8% then you may end up making 8.5-8.75% in mutual funds. So if you have large sums lying in savings account or bank deposits you may end up earning lesser returns compared to mutual funds. Tax efficient: In many cases you may end up paying lesser taxes by saving in mutual funds compared to the fixed deposits.

Breadcrum product stage mutual fund


Benefits of investing in mutual funds  
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