For every individual, it is necessary to find some of the best options where he can get a better return on his savings. There are ample avenues available in the market with the help of which one can fulfil his desire of making the investment earn for him. Among the safe and secured tools of investments, the mutual fund can prove as the best and most rewarding. The advantages associated with mutual funds can help one get the desired amount at a certain period. The system of investment in this option is easy and user-friendly, and hence even one who is not much tech-savvy can also invest here.
What is a mutual
fund?
A mutual fund is an
option of investment where a pool of amount is created by the AMC which is
received from various investors and invested in the share market. The benefits
received in the market helps one to have increased value in the unit prices.
There are open and close-ended funds. The open-ended funds are one where the
investor can get the amount back at any point of time while in close-ended
funds there is certain lock-in period and hence the amount gets blocked for
that period. The ELSS funds returns
are the best motivator for the investors as there are many companies in the
market which offer the investment options to the general investors.
Why invest in mutual
funds?
Investment in a mutual
fund has a number of benefits, and that is why for a common investor also it
proves much useful as a tool for the small to large investors. The ELSS funds returns need to be checked
before investing the amount with the date of inception as those funds which are
relatively new and still offer good return can be the best option for one who
wants short term benefits. There is also a systematic investment plan where one
can get benefits irrespective of the movement of the market. The investor of
the mutual fund is provided with a folio number as well as units allotted to
the investor. Hence one can know the value of his investment on a daily basis
also. The calculation in a mutual fund is also simple, and one can get it done
without the help of an expert also. The units also need to be multiplied by the
Net asset value of the units which can help one get the total value of the
units.
The investment in
this option can be done for a few years to a few months which is another added
advantage. The investor can also get the ECS done which means the amount is
directly debited from his account and credited to the company. Hence one does
not need to pay by cheque. The redemption of the units can also be done in one
go or in parts which can help one get required amount withdrawn while keeping
other amount as earning from the market. Hence the advantages of the mutual
fund are countless, and ELSS is one of the best options to go for.
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