Mutual funds investment can multiply your wealth.
- Minimal risk as compared to other investments.
- Portfolio diversification is possible - meaning that you don’t put all your eggs in one basket.
- More chances of success and profitable returns thanks to investment diversification.
- Mutual funds are actively managed and employ a professional fund manager whose performance parameters are directly linked to the performance of the fund scheme.
Investments in a mutual fund through a particular AMC can be switched - meaning that the investment can be redirected into another mutual fund scheme at any time depending on market conditions.
- ELSS investments can help you save up to Rs.1,50,000 from taxation under Section 80C.
- Mutual funds provide higher potential returns than any other type of investment avenue.
- Mutual funds can be invested through a method called SIP

Mutual funds are an investment tool that pools money from several investors and invests it in company stocks, bonds, government instruments, etc. in order to generate a profit for investors. This profit may be paid out as dividends to investors (dividend plans) or reinvested by the fund for capital appreciation (growth plan), There are many different types of mutual funds based on various characteristic differences. Most mutual funds try to diversify their investments into as many different companies and industries as possible, and some invest in only specific industries and sectors of the economy. Some funds aim for high-risk-high-reward strategies, while some opt for low-risk-regular-income strategies. There’s a huge variety of funds to choose from, and a large number of Asset Management Companies (AMCs)/fund houses. that offer excellent schemes for all types of investors. Some banks and financial distributors also sell mutual funds.