A mutual funds is a professionally managed type of collective investment that pools money from many investors to buy stocks, bonds, short-term money market instruments, and/or other securities.
Anyone and everyone can invest in equity mutual fund through SIP mode. One can start investing with just Rs 500 a month, A SIP allows regular periodic investments through ECS (Electronic Clearing Service) process where money gets automatically deducted from your bank account every month at a predetermined date
Financial goal-oriented fundsIf you have long-term financial goals, equity mutual fund can be one of the best vehicles to achieve the goal. The funds are categorised into large-cap, mid-cap, small-cap, etc. and accordingly the returns vary from fund to fund. The higher the risk associated, the more you have chances of getting higher returns to achieve your target amount.
Portfolio Diversification
Professional management and well regulated
Low transaction costs
Liquidity
Tax benefits