4 reasons why the popularity of mutual funds is increasing in India

When it comes to money, investment is one of the most important things one can do to increase the amount of return. This helps to improve the monetary balance and also improves the economic condition of the investor. India has got a large number of investors who have different assets on which they can invest. In such a socio-economic scenario, the popularity of mutual funds is fast increasing among the masses.

In the present era, several regular investors are gaining interest in mutual fund investments. Earlier, there were certain myths about the possible risks related to the expenditure on mutual funds; however, the scene has changed now. Most of the investors of recent times are keen to minimise the risks of mutual fund investment by the dedicated study of different kinds of investments.

There are some prominent reasons why the popularity of mutual funds are increasing in India. Here, the top four reasons are enlisted in details:

Management of mutual funds is professional

When it comes to investments done in the mutual funds, the investors generally take a more professional approach. There are nominal instances where an investor might invest in a mutual fund without professional consultation. The mutual fund experts usually analyze all vital aspects of the investment, such as the type of asset, tenure of the investment and the probable amount of return.

Mutual fund investments, for any new investor, can be appropriate as the expert can instruct him about the perfect stocks to buy. He also tells the investor about the ideal time to buy it.  Moreover, a handful of banks are into dealing with mutual fund investments today. Thus, investors are ensured with prominent security.

A mutual fund is diversified

Mutual fund investments in India are rapidly gaining popularity as it provides investors with prominent diversity. In the case of mutual fund investment, one can easily invest in multiple ventures. This can efficiently reduce the risk related to the investment. Investing in various stocks can balance any probable risk, thus keeping the returns in balance. The mutual fund experts always instruct the investors in regards to the best investment.

Any investor in India can go for different mutual fund direct investment, thus resulting in the elevation of popularity in the country. Apart from diversity, mutual funds have either too short or no lock-in period. This is entirely different from all other types of investment plans as they have elongated lock-in periods.

More returns are enhanced with mutual funds

Indian investors primarily possess an aim to gain a higher amount of return when it comes to any investment. Higher amounts of profits in the case of mutual funds help it to gain popularity among the masses. Business people from all over the country are gaining the interest to opt for mutual fund investment. Debt funds can be of lower risk for the investors as the rate of interest of the Indian banks are going down. Furthermore, the diversification of the portfolio and the rupee-cost averaging can also enhance high returns.

In the current condition of inflation, the mutual fund with lower risk is turning out to be the best way how an investor can maintain excellent economic stability.

Mutual funds are investor-friendly 

One of the main concerns relating to mutual funds is investor-friendliness. The prominent mutual fund providers in the market deliver the convenience of online handling. At present, it is just a matter of some clicks to invest in the mutual fund. Every investor can automatically put their monthly investments in the SIP (Systematic Investment Plan). It can be done with the help of the auto-pilot mode. This mode enables an automatic debit of the total amount of monthly investment from the investor’s account.

 Thus, the investor can enjoy the utmost comfort while handling an online mutual fund. This is another main reason for the increasing popularity of mutual fund investments.

Apart from the factors mentioned earlier, there are some more reasons that are responsible for which the popularity of mutual funds is increasing in India. Many investors often turn reluctant over carrying the mutual fund investment forward due to the diminishing interest by time. Mutual funds with auto-pilot mode can help the investors to maintain the discipline ultimately.

In India, many banks have started dealing with the plans for mutual funds. Experienced investors can now easily choose a particular type of investment depending on the preference and goal. More people are making decent money simultaneously with the investors by giving them professional instructions. The experts are also responsible for enhancing the awareness of mutual fund direct investment and its advantages among the new investors.

To meet the keen competition, the banks dealing with mutual funds are hiring a large number of experts. It is resulting in the improved popularity of mutual fund in the country. The investor base of India has now become decently knowledgeable about the tactics to gain from a mutual fund by avoiding the probable risks.

Author: Robin Gupta