While the benefits of mutual fund investment for retail investors are well-documented, even corporates can take advantage by investing in this financial instrument The flexibility and convenience on offer by mutual funds can help corporate investors fortify their finances and be prepared for emergencies Let’s see the various benefits you, as a corporate investor, can reap by investing in mutual funds.
Augmenting profits is one of the major goals for any enterprise. Investing company money in mutual funds can help you bolster revenues significantly Note that most organizations have idle cash lying in their accounts on weekends and holidays when there are no transactions Roughly, there are 130 days when no transaction happens By investing money in mutual funds during this time, you can create more wealth.
Among several mutual fund investment options, if this money is parked in an overnight fund, which has a residual maturity of one day, you can earn decent returns. Figure this: If you have Rs 50 lakhs as idle cash every month in your account and invest the money every weekend and holiday(s), you can potentially gain Rs 2 lakhs Doing so for years can amplify profits by several notches To put it otherwise, it helps businesses create an additional source of income.
Delayed payments from clients, losses in a project, going over budget, etc., are some pressing issues affecting most corporations Events like Covid-19 can make matters worse Financial prudence calls for being prepared for such contingencies, and investing in mutual funds can help organizations do that
In other words, when you invest business money in mutual funds you ensure your organization’s finances aren’t stretched in the event of an emergency Among several mutual fund options, investing in liquid funds, which invest in instruments maturing in 91 days, you can build a corpus for your business that can come in handy during rainy days As the underlying securities of these funds mature in 91 days, these are relatively safe from credit and interest rate risk
Liquidity refers to the ease with which you can convert your investments into cash.There could be instances where businesses might be in need of funds on short notice Traditional instruments like FDs may not fit into the scheme of things as breaking it before its tenure attracts a penalty
Also, it could involve a lot of paperwork However, things are radically different with mutual fund investment As a corporate investor, you can redeem your investments in a few clicks online, and the money gets credited into your business account within 1-2 days.
Markets are on tenterhooks Volatility is here to stay due to rising inflation and ongoing geopolitical strife In such a scenario, debt funds can be a safe haven for investors looking for decent returns with capital safety.
Shootih, India’s first Business Wealth Management Platform, recommends relevant mutual funds that you can choose to invest in as per your desired tenure, thereby aiding you in making an intelligent choice
Now that the benefits of investing company money in mutual funds have become apparent, the question is how can you, as a corporate, do so in a simple and hassle-free manner This is whereAI-driven mutual fund investment platform for corporates, Shootih comes into the picture.
By offering investment opportunities in a gamut of mutual funds, Shootih is India’s first business wealth management platform that helps you maximize gains from your business’s idle cash. With Shootih, you can:
● Identify investment opportunities in mutual funds as per your risk tolerance and investment horizon
● Get a 360-degree view of your investment holdings
● Make mutual fund investments in a single click
● Get instant alerts on investment opportunities
To know more about this first-of-its-kind mutual fund investment platform for corporates, book a call with our product manager today!
Prudent investment in mutual funds can help corporates address several business pain points Not only can it aid them in growing their profits but guarding their finances against systematic and unsystematic risks If you are yet to invest business cash in mutual funds, get started today with Shootih
Disclaimer: Mutual fund investments are subject to market risks, read all scheme related documents carefully.
The content of this blog is not intended to serve any professional advice or guidance and Shootih takes no responsibility or liability in whatsoever manner for any investment decisions made by the readers of this blog or other blogs. Readers should seek independent professional advice before making any investment decision based on the information provided on this website
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