In India, legal status of Mutual Fund is a trust. Where investors are beneficiary. As name suggest, investors money are pooled and invested with a common goal. This is very popular and time tested method of investing in West. Now in India it is rapidly gaining popularity. Lots of advantages are there for you if you invest through Mutual Fund. These are :
 |
Professional Management | |
Proper Asset Allocation |
|
Proper Diversification | |
Low Cost. |
|
Liquidity | |
Transparency |
|
Flexibility | |
Affordability |
|
Tax Benefit | |
Choice of desired Scheme |
|
Very strict well regulated financial operation. |
Yes, there are few disadvantages also, but we feel these are blessing in disguise.
(a) No control of the actual investment.
Our Opinion :
Do you have time to analyse hundreds of investment option regularly before making any investment decision. It is always easier to do analysis on recent form of Indian cricket team or research on their strength and weakness. But what about if you get a chance to play for India ? In investment also it is easier to track the fund manager’s performance than to do it yourself. We can compare fund manager’s performance with others. Make rational decision in the light of multiple factors relating to investment.
(b) Investment management fee.
Our Opinion :
Fund Houses transact on bulk. So in a bargain price the transaction fees are cheaper for them. On the other hand if you transact for your own then you will not enjoy the same bargain price what fund houses get.
Above all if some one work for you, a reasonable fee is always due to him. Is not it ?
(c) Choice of appropriate Scheme :
Our Opinion :
This is the area, where our service work for you. We provide unbiased analysis before suggesting schemes and our suggestion is always client centric.