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Benefits of investing in mutual funds

Many people take no care of their money till they come nearly to the end of it, and others do just the same with their time


- Johann Wolfgang von Goethe

Benefits of investing in mutual funDsUsually, people opine that investing in mutual funds is a risky investment. However, some people consider mutual funds as the number one priority. But, do mutual funds really have a competitive edge over other investment options?

The answer is, yes.

Let me spotlight a few, yet significant features that give mutual funds an edge over certain investments:

  1. While moving from fixed deposits and unit-linked policies, if you are looking to beat the inflation or fulfilling your life goals, then mutual funds are the answer.
  2. Mutual funds offer the convenience of easy liquidity, like getting the money back even in minutes.
  3. They provide the right kind of diversification like the mutual funds involve investing not in one but many stocks and Many regulators regulate them like SEBI (Securities and Exchange Board of India).
  4. Are mutual funds for the wealthy only? Mutual fund investments are for everyone. Like high risk or low risk. So, you can choose from a wide variety of funds. There are plans for everyone.
  5. Help in accomplishing different kinds of goals: For your child’s education or marriage, you could choose diversified equity For liquidity purpose, you could choose short term funds or liquid funds.
  6. So, do you pay the charges for these professionally managed funds? There is a nominal fund management fee, but these get spread across and hence becomes minuscule.
  7. You get the income tax benefit. You get a tax rebate while making investments, which helps you in optimizing your It is the only shortest (redeem after three years) and the easiest way to redeem while making investments from the income tax perspective, unlike PPF, FD.
  8. The benefit of investing in mutual funds comes from the fact that a combination of equity and debt bolsters the growth of equity and stability of Thus, making mutual funds more beneficial.
  9. Mutual Funds bring you the benefit of compounding Interest on interest.

Now that you have understood the benefits of mutual funds, let us take a deep dive and learn more about mutual funds in the following chapters.

financial advisor in gurgaon

Taressh Bhatia is a CFPCM  cfpCERTIFIED FINANCIAL PLANNER CM and is the founder/partner of Advantage Financial Planner LLP – A firm Registered with SEBI (Securities and Exchange Board of India) as RIA (Registered Investment Advisor).

If you have Liked the blog You can read more in the book – The Richness Principles.
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About ADVANTAGE FINANCIAL PLANNERS LLP: The Firm is registered with Government Of India-The Ministry of Company Affairs as a partnership firm. The firm is registered with SEBI (The Securities and Exchange Board of India) as "Registered Investment Advisors (RIA) under the SEBI (Investment Advisers) Regulations, 2013. Registration with SEBI as "Registered Investment Advisors (RIA) brings more formal approach, risk profiling, disclosure, and transparency. While the firm is a fee-based investment advisor, this brings you the opportunity to get unbiased, researched, accurate, transparent and professional advice. The firm is managed by the founder and its Partner, Taresh Bhatia. The company provides financial planning advisory services from its office in Gurgaon, India. The firm specializes in investment planning, retirement planning, tax planning, personal financial planning and wealth management. About Taresh: Taresh Bhatia is CFPCM CERTIFIED FINANCIAL PLANNERCM. He provides fee-only financial planning advice. He has helped over 300 families plan and organizes their economic life so as to move positively towards their financial goals. Taresh is an expert on financial advice and has three decades of industry experience. Among his qualifications, he is a CFPCM CERTIFIED FINANCIAL PLANNERCM and an MBA from IMI, New Delhi. He is also a member of the Financial Planners' Guild, India (FPGI), an association of Practicing Certified Financial Planners. If you have any questions, please email us at

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