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The advantages of investing a mutual fund is if one of the fund stocks or other securities performs poorly the loss can be offset by gains in another stock or security within the mutual fund.

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10y ago
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meetaveerwani11

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2y ago

There are various benefits of investing in Mutual Funds -

A) Affordable: As much of the population can not invest a significant amount, we have SIP - Systematic Investment Plans which makes mutual funds quite affordable.

B) Easy Investment: SEBI introduced Direct Plans of Mutual Funds in January 2013, this has made investing quite easy.

C) SEBI Regulated: Mutual Funds are regulated by Securities & Exchange Board of India to protect the interests of investors.

D) Faster Disbursal: One can easily sell off mutual funds to meet any of their Financial Goal. Instant Redemption Facility is there.

E) If one invests for Long-term, strategically it can beat the inflation rate.

F) Tax Savings Schemes: One can invest for tax saving purpose as well.

G) Fee-Based Professional Management: As investment is never one time activity. You can hire fee based SEBI Registered Investment Advisors(TrueMind Capital Services) to manage your portfolio.

H) Diversification: To minimize your risk and maximize your returns, Mutual Funds offers excellent diversification.

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