When it comes to share trading and investing, it’s best to leave it to the professionals. A skilled investment advisor, such as Ashika Stock Broking, can assist you in maximising your returns while minimising your risks. According to us, at Ashika Stock Broking, mutual funds are the ideal alternative for you as an investor to reach your specific financial goals. Here are a few of the benefits of investing in mutual funds with Ashika Stock Broking:
- A Portfolio with a Wide Range of Assets
Debt and equities are the two basic asset groups in which mutual funds invest. Some funds are solely invested in debt, while rest are hybrid.
The main advantage of investing in a mutual fund with Ashika Stock Broking is that you have exposure to a wide range of stocks and fixed-income securities. For example, if you invested Rs. 1,000 in stocks directly, you would most likely receive only one or two shares. If you invested in a mutual fund, on the other hand, you would receive a basket of different equities for the same money. When a few securities in a portfolio do poorly, the others make up for it. Mutual funds provide diversification in this way. If you’re a novice investor who doesn’t want to waste time researching stocks, mutual funds are a good option.
- A lot of Variety
One of the major advantages of investing in mutual funds with Ashika Stock Broking is this, i.e., there are many active schemes, giving you plenty of options. You can choose funds that fit your risk tolerance, time horizons, and personal financial objectives. The less-risky are debt funds, followed by hybrid funds, which are medium-risky, and equity funds, which are the riskiest. The payoff, on the other hand, is proportional to the risk. The greater the risk, the greater the reward.
There are several options even within these broad categories. A large-cap equities fund, for example, will be less volatile and provide lower but consistent returns. Mid-cap and small-cap equity funds, on the other hand, might have a lot of ups and downs but have the potential to provide larger returns over time.
- Take Advantage of High Liquidity
You can purchase and sell your units at any moment if you invest in open-ended mutual funds. The fund’s net asset value (NAV) for that day determines your entire redeemable or buyable value. Closed-ended funds, like open-ended funds, can be liquid. Closed-ended funds are listed on an exchange after the New Fund Offer (NFO) ends, despite the fact that they have a fixed duration. These funds can be easily bought and sold once they are listed on a stock exchange.
There is always a high level of liquidity whether you buy open-ended or closed-ended funds with Ashika Stock Broking. It’s worth noting that some Mutual Funds, such as Tax Savings Funds (ELSS), have a three-year lock-in term.
- Purchase a Lump Sum or set up a SIP
Flexibility is one of the benefits of mutual funds. You can either make a one-time investment or set up a SIP with Ashika Stock Broking to invest in little amounts over time. If you have any spare cash, a lump sum investment is a good option. We. at Ashika Stock Broking, advocates investing through a systematic investment plan (SIP) because you can invest small sums (rather than lump sum). The cost of purchasing mutual fund units may also be reduced due to rupee cost averaging.
- Small Amounts Can Be Invested
A SIP can be started with as little as Rs. 500 per month. The advantage with Ashika Stock Broking is that you don’t have to wait for a long time to accumulate enough money to invest. As a result, you’ll be able to make the best use of your cash and maximise your profits.
Investing in mutual funds with Ashika Stock Broking can be cost-effective. When buying stock directly, you must pay fees such as brokerage and the Securities Transaction Tax (STT). The more transactions you have, the higher your costs will be. Mutual funds have an advantage over individual investors in that they conduct large-scale transactions and thus profit from economies of scale. They may, for example, be able to obtain lower brokerage rates, which would benefit mutual fund investors. Because they deal in big numbers, a debt fund may be able to negotiate higher interest rates from debt issuers.
- Lower your tax burden
Finally, one of the advantages of mutual funds is that they can help you save money on taxes. Under Section 80C of the Income Tax Act of 1961, you can lower your taxable income by up to Rs 1.5 lakh by investing in an ELSS fund.
Also Read: A Beginner’s Guide to Saving and Investing