Are Mutual Funds really an actual nail-biting investment?

Mutual funds time and time again have raised a bunch of questions in the minds of investors and have also answered all of them. Doubts in relation to mutual funds are getting simpler as they have made their way through mobile apps. Despite their growth, mutual funds are identified as petite contenders in the Indian money market. Why is that an issue? To begin with, mutual funds provide you liquidity which means you as an investor can redeem the capital at any point in time. Furthermore, without mutual funds, you would be missing out on investing in diversified and multiple schemes that are ought to yield you returns! In addition, saving funds for an investment in mutual funds does not become an obstacle, as they provide you with the flexibility to invest in smaller amounts. Having a saving fund via a Systematic Investment Plan (SIP) is the convenient way to kickstart your journey in mutual funds.

Considering these benefits and much safer times for MF performance, scripbox is one of the best apps that would bring you veteran advice and comprehensive investment management. In this app, you are benefited from a tool called mutual fund tracker which assists you with scheme performance and portfolio insights.

Why are mutual funds safe?

A mutual fund is a very easy process. When you and other investors invest in a saving fund, it forms a pool of money. This pool of money helps experienced fund managers to further invest the collected fund in capital markets of multiple companies. What makes your funds safe is the fact that multiple companies as a number reduce the loss to a minimum, if incurred. Moreover, the fund managers are aware of and are constantly forecasting the ups and downs in capital markets.

Gains from mutual funds are taxed in a manner that will ensure tax savings on your returns. Mutual funds come out as tax-friendly whether you invest in long-term or short-term schemes.

SEBI and AMFI are statutory regulatory bodies that regulate mutual funds in order to secure investor’s interests. Every mutual funds company ought to have the same licenses and approvals as that of any bank. Hence there is no flight risk of mutual funds companies.

To sum up, mutual funds are safe. It’s highly preferred to learn more about mutual funds and their schemes before you decide to fund in any capital market. When you do so, scripbox’s mutual fund tracker comes out as a handy tool. Getting regular updates and forecasts of the current capital market is advisable for any investment decisions. With scripbox you will find regular updates and articles that will help you build your understanding of investing and mutual funds.