Mutual funds

[yusuf_ma09]

Hello there

I want to know about mutual fund whether it worth investing in mutual funds now

 

[5paisa]

Mutual funds work on the power of compounding, which means if you invest today, then your investment will grow after a period, owing to the growth of the market.
Following are the benefits of investing in mutual funds
Invest In Equity Mutual Funds To Reap These Benefits-
1. Capital Appreciation -
Equity mutual fund investments offer capital appreciation when the NAV of a fund increases. NAV of a fund rises if the market value of that fund’s portfolio holding increases. When investors’ capital appreciates in value, equity funds re-invest the profit. Thereby, empowering investors realise long-term growth by way of compounding.

2. Dividend Income -
When equity funds earn profit in the form of dividend on the underlying stocks in its portfolio holding, it pays investors in the form of dividend income.

3. Tax Rebate -
Returns on equity mutual fund investments are exempt from taxes (returns on investments held for more than a year). That apart, dividends on equity funds are tax-free in the hands of investors.

4. Expert Management -
Investing in stock market requires knowledge of markets, patience, discipline and time.Investing in mutual fund comes with the benefit of expert professional management wherein an expert fund manager manages the pool of money invested by investors.

5.Liquidity -
Investment in stocks do not provide much liquidity when the need arises, but investment in mutual fund units do. For instance, open-ended mutual funds units can be bought and sold anytime.

 

[rakhidollar]

A mutual fund is a professionally-managed investment scheme, usually run by an asset management company that brings together a group of people and invests their money in stocks, bonds and other securities