Low-Cost High-Return Mutual Funds: Finding the Right Balance

Low-Cost High-Return Mutual Funds

Emerging as one of the most trending and popular investment instruments, mutual funds offer quite a simple and effective way of investing in a diversified portfolio of securities, enabling investors to participate in the growth of various financial markets.

Around two months ago, when I started earning, I planned to invest in mutual funds for long-term benefit. Nowadays, investing in the best mutual funds for SIP is super easy. You just need the right application on your smartphone, and you are more than good to go.

What are mutual funds?

Investors to invest in a diversified portfolio of stocks, bonds, and other securities. When it comes to management, it is entirely managed by a professional fund manager or experts who make investment decisions on the investor’s behalf.

The best mutual funds are designed to provide investors with access to professionally managed portfolios, allowing them to achieve diversification, even with small amounts of investment. When an investor purchases shares of mutual funds, the money is basically used to buy securities according to the fund’s investment objectives.

What are its advantages?

●     Diversification

Mutual fund investments allow investors to diversify their investments across a range of securities. This ultimately helps in spreading the investment risk and reducing the impact of volatility in any single security.

●     Cost-effective

This investment scheme offers the opportunity to invest with a relatively small amount of money. This makes them accessible to a wide range of investors, including even those who may not have any means to invest directly in individual securities. So, next time you research for “what are the best mutual funds to invest in?”, start with a small amount.

●     Liquid

Mutual funds are open-ended, which means the potential investor can purchase or sell units at any time based on the prevailing Net Asset Value (NAV). This offers liquidity and flexibility, enabling investors to convert their investments into cash whenever required.

●     Professional Management

Mutual funds are managed by professionals who have expertise of the financial markets and sphere. They conduct well research and analysis to make investment decisions on behalf of the investors. This ultimately helps in diversification and maximising returns.

●     Tax Benefits

There are certain mutual funds in our country, such as Equity Linked Savings Schemes (ELSS), that offer tax benefits to investors. This falls under Section 80C of the Income Tax Act, making them a pretty popular choice for tax planning purposes.

What are the best mutual fund to invest today?

  1. Quant Small Cap Fund Direct Plan-Growth
  2. Quant Tax Plan Direct-Growth
  3. Quant Infrastructure Fund Direct-Growth
  4. Quant Active Fund Direct-Growth
  5. Axis Small Cap Fund Direct-Growth
  6. Tata Digital India Fund Direct-Growth

How to invest in mutual funds?

In my personal experience, I’ve been using the Bajaj Finserv application for over two months now since I started investing. It is one of the best applications to use to invest in mutual funds. Also, it offers Top Performing Mutual Funds to Invest In India.

  1. Download the application
  2. Sign up with your mobile number
  3. Under the Investment Bazaar section, go to the Mutual funds
  4. Proceed as per your requirement

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