Raising Money through Mutual Funds is the New Mantra
Mutual Fund is an open-ended type of fund operated by a capital investment firm that raises money from a group of investors. The collected fund is then invested in shares, stocks, bonds, and other market securities, in accordance with a standard set of requirements. You can invest online in the best mutual fund companies operating in India.
It is a mediator that brings together a group of investors to invest in a diversified managed basket of capital market securities at a relatively low price. Investing in top mutual funds is the most viable option for the investors that offers convenience, choice and liquidity. Thus, it is one of the best avenues that provides your money a chance to flourish.
Benefits
Investing in Mutual Funds through Cognus Capital Invest offers you a gamut of advantages. These include:
Diversification
An investment can be made in a variety of securities like shares, bonds, etc. The diversification helps in reducing the risks of the portfolio across different sectors and companies.
Professional Management
These funds are managed by industry professionals who possess considerable experience and expertise in delivering a much better return.
Choice
You can select the fund on the basis of expected return and risk profile.
Convenient
As mutual funds are managed by the professionals, you have a convenience to choose the suitable schemes. You also have an option of regular investment or withdrawal options.
Liquidity
There is no restriction as you can invest or redeem your open-ended funds anytime.
Government Regulations
All the mutual funds in India are registered with SEBI. They are subject to government regulations.
Flexibility
You can easily transfer your funds from one scheme to other according to the current market value
Risk Minimization
This investment reduces the potential risks of losses.
Types of Schemes
Investments in Mutual Funds can be done through a bouquet of investment options. The various alternative are equity funds, balanced schemes, gilt funds, debt funds, sector funds, MIPs (Monthly Income Plans), index funds, MMFs (Money Market Funds) ETFs, etc.These categories are designed to allow investors to choose a suitable scheme on the basis of risk they are willing to take.
Most of the MF schemes have "growth oriented" or "dividend-oriented" plans. In equity Schemes, our team invests in equity shares of firms that offer returns in the form of capital appreciation. The performance may not be consistent because it involves a high risk.
It will depend on the performance of the company that the fund invests in. On the flipside, this type of fund has a high-return capability since equities have a historical record of performing outstandingly than other asset classes.