Mutual Fund Investment

Why You Should Be Looking at Mutual Funds Investment Plans

You work hard to earn money, and that’s why it makes sense to invest it for healthy returns. Mutual funds are an investment avenue which needs to be understood. Although proven to be very popular, mutual funds can turn into a risk if not invested in with a financial planner.

How Do Mutual Funds Work?

Quite simply, a mutual fund is a bundle of investments owned by a group of investors and run by a professional money manager. These investments are typically stocks, bonds and other funds.

With a mutual fund investment, you buy units of the fund. When more people invest, the fund issues new units.

Just as there are different types of investors, there are different types of mutual funds. A mutual fund defines an objective, and it is this that determines where it invests.

For example, a fund may invest mainly in government bonds, or shares from a specific category, or in debt instruments, or only in equity. Many mutual funds also invest in a combination of different categories. There can be open and closed-end funds, tax-saving funds, equity funds and growth funds.

Mutual funds are run by portfolio managers. They choose and then decide when to buy and sell investments according to the objectives of the fund.

What Are the Benefits of Investing in a Mutual Fund?

Mutual funds in India are classified on the basis of structure as well as the objective. SRE distributes different types of such funds and some of them are: Open & Closed end funds, Tax saving funds, Equity funds, and Growth funds etc.

Each of the above mentioned funds types have different objectives and cater to different financial requirements of an investor. For instance, the closed end funds have a specific period of maturity and after the period is over, the money can be withdrawn. On the other hand, in case of the open ended mutual funds in India, there is no maturity period, an investor can invest and exit at anytime.

The reason that mutual funds are among the most popular investment choices is because of the many advantages for the investor.

Among these are:

  • Mutual funds are managed by portfolio managers with rich experience of investments. So, your money is handled with care and expertise.
  • Your investment can grow seamlessly, as dividends and interest of the mutual fund can be used to purchase additional units of the fund.
  • With mutual funds, the risk is typically reduced because most funds diversify their investments. A well-chosen and diverse portfolio is thus at your fingertips.
  • Mutual funds are simple to understand and convenient to invest in. You can even buy mutual funds online. The price of entry is low, and unlike equities, for example, there are no price fluctuations throughout the day.

What Are the Advantages of Mutual Funds over Other Investments?

As we’ve already noted, diversification of risk and professionalism are the key features of mutual funds. But they also have other advantages over other types of investment.

Here are some things to keep in mind:

  • Mutual fund investments are very well regulated. In India, the Securities and Exchange Board of India (SEBI) has laid down regulations that all mutual fund providers need to follow. This provides an extra level of safety and security.
  • Mutual funds offer a great deal of flexibility when it comes to the amount that can be invested. You can put a certain amount at one time, or you can even choose a SIP, which lets you invest monthly.
  • There is substantial ease of operation with mutual funds. By investing in mutual fund online, buying and selling is convenient, and thus liquidity is not a problem. Their performance is also easy to track. Transaction costs, too, are lower, as these are shared among a pool of investors.
  • With mutual fund investment in some categories, you can also get tax-deduction benefits under Section 80C of the Income Tax Act.

Why Is the Right Financial Advice Important for Mutual Funds?

Just as sportspeople rely on coaches, and people who seek health depend on doctors, one should rely on a mutual fund financial advisor for best results.

This is mainly because such finance advisors have the skill and experience to assess the investor’s risk appetite and objectives. Once these are known, then the recommendations of the right kinds of mutual funds can be made.

Their knowledge and understanding are essential to judge the quality of a scheme and its compatibility with the clients’ preferences.

The research abilities and patience of a mutual fund financial advisor are also important in when it comes to portfolio reviews or market fluctuations. It is at such times that the investor gains the confidence to remain on the road to his or her financial goals.

Why Sykes & Ray Equities Should Be Your Mutual Fund Advisor

Mutual funds are considered as relatively safe investment opportunity. They offer variety of choice of exposure to different asset classes and sectors according to risk profile and if chosen in a wise manner can provide satisfying returns.

  • Mutual Funds help investors build diverse portfolio
    A mutual fund comes in many types and styles. There are Equity funds, bond funds, sector funds, money market mutual funds and balanced funds. The availability of different types of mutual funds allows investors to build a diversified portfolio even with small investments at low cost and without much difficulty
  • Mutual Funds for Small Retail Investor
    The availability of different types of mutual funds allows investors to build a diversified portfolio at low cost and without much difficulty; the small retail investors can buy them and obtain instant access to hundreds of stocks or bonds. Mutual funds investments as low as Rs.500 can be made and the retail investor gets a diversified portfolio.
  • Professionally Managed by SREs Highly Skilled and Qualified Managers
    Managers at SRE cater to the requirement of mutual fund investors and various mutual fund schemes are advised as per the objective and risk profile.
  • Relatively Safer Investment
    Mutual fund investment plans are considered as relatively safe mode of Investment. Needless to say all investments are subject to market risk.

SRE is empanelled with all leading fund houses and also has a dedicated mutual fund desk which, along with our research team ensures the growth of our clients investments. Moreover, our mutual fund team boasts of an excellent track record when it comes to servicing clients and selecting the best suited schemes depending upon our clients preferences. Apart from this, our research team also provides regular ratings and updates on the Mutual Funds.

We believe that that a mutual fund investment shouldn't stand alone, but be part of a comprehensive plan. That's why we first understand your objectives, and only then suggest the right blend of mutual funds.

At SRE, our guiding principle is to put the client’s needs first. We're proud of the relationships we've built with investors over the years.

We will not recommend a mutual fund simply because of tax benefits, or returns, or safety. We will show you how each one will fit into the larger scheme of things, and how they will help you reach targets.

Get in touch with us, and discover how the right mutual funds can enrich your portfolio.

Mutual Fund Investment for Financial Goals

Working with SRE means your investments would be based on the goals you have set with them, keeping your risk appetite and time horizon in mind. The whole investment process involves proper planning instead of hard selling—something that most of the companies do. Check out how mutual funds can be used for: