- Bitcoins recently touched the value of $13k
- Stephen Roach, Yale economist, terms it as a "Dangerous Bubble"
- 9 pointers that give Mutual Funds the edge over cryptocurrencies
The cry for new avenues of investment is getting louder day by day. Now that cryptocurrencies like Bitcoin are registering an astronomical value of $13k, people are wondering whether they have missed the bus. Well, not exactly, there are many avenues which are more viable when it comes to ease of access and transparency.
Mutual funds, for example, is an excellent example of such product which not only makes your investment profile diverse but it can also offer you tax benefits which the cryptocurrencies fail to cater.
Here is why you should invest in mutual funds –
1. Diverse Investment Portfolio
Investing in mutual funds will diversify your investment asset allocation. This will save you from the volatility of the stock market and hence minimize your risk exposure.
You can track your investment and its current value online. All the required information about the fund’s holdings, performance and assets are available to all investors.
3. Options Galore – The more the merrier
There are different types of mutual funds which you can choose to invest in, depending on your risk-taking ability. There are bond funds, stock funds, sector funds, money market Mutual Funds such as Debt Funds, and Balanced Funds among many others.
4. Managed by Fund Managers
Every fund is managed by a fund manager. These fund managers are responsible for monitoring the performance of the fund, reviewing your investments and realigning your asset allocation in order to gain optimal returns.
5. Lower Investment Thresholds
If you are wondering that you need a lot of money to invest in mutual funds then let us notify you that you can start even with a meagre sum of Rs 500! Isn’t that awesome?
6. Periodic Investment and Withdrawal Option
Mutual Funds promote systematic investing and give investors several options to make investing a regular habit. With a Systematic Investment Plan (SIP), you can invest a certain fixed amount of money in Mutual Funds on a monthly basis for a specific tenure.
Few funds also allow you to withdraw a portion of your investment made into those funds.
8. Automatic Reinvestment
You can also choose to reinvest any profits paid to you by the Mutual Funds. This allows you to benefit from the power of compounding.
9. Highly Regulated Investment Product
Mutual Fund is a highly regulated investment product which means it is always under the scanner of the concerned board and authorities. It is regulated by SEBI (Securities and Exchange Board of India) which has laid down strict guidelines for all mutual fund activities. Due to this, the investors can take comfort in investing as there is a regulator to protect their interest.