“I make no attempt to forecast the market—my efforts are devoted to finding undervalued securities.” Warren Buffett

Diversification

[{"selector":"#anim-ac0e4e64-02c9-4152-81c8-fa5fd1ca3b4e [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-2.6944872357751213%, -0.04890641337609025%) scale(1.1953125)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-2409c790-b0db-4852-9a62-1520058249d7","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a1d266ea-201b-4b53-b365-25a4afb01e10","keyframes":{"transform":["translate3d(-114.02985%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b19d615b-9c39-41c6-b6ae-4cdf682fad31","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-72a8bf62-8bf8-4028-b411-692b16fee159","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}]

Professional Management

[{"selector":"#anim-9bda80f0-b76e-4315-a1d5-7ca16312a37b [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-8828f4f8-cd86-4052-b68d-0f87da6397c9","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-29606007-6bfc-4a66-bd36-5c4ecdfc6cd6","keyframes":{"transform":["translate3d(-113.15069%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-be3318c8-2035-4663-9db7-675d0c7cd5d6","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e377783e-a477-4c69-92c1-d4391b145f77","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Mutual funds are managed by the particular experienced investment professionals who have the expertise to select proper securities and manage portfolios actively .This can give better returns than an individual investor managing their own portfolio and funds.

Economies of scale

[{"selector":"#anim-c3084ba0-68e6-42c6-b84b-86c385185a86 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-17.75892862130629%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-2ba0cd50-a32f-484c-8c8b-c3fae512c5b9","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a1a50a36-253f-4be8-bf57-4283dc353f2c","keyframes":{"transform":["translate3d(-113.25967%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7ec7a3f8-69f9-4f4c-bd59-9ba471edc7b4","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-22a24ea1-0946-4a7d-b0d9-082f8a172587","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}]

Flexibility

[{"selector":"#anim-90127726-f1e5-4a13-893c-9686a9d09bbb [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(6.253451865618176%, -0.5948302923109258%) scale(1.2512562814070352)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-bf88e1cd-2d2a-4511-a1a4-eb9926fdf909","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2a46c1ce-3a31-4521-9dba-42e6b167a369","keyframes":{"transform":["translate3d(-114.87342%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-69db1063-6910-4528-b8bb-046a6ffe638f","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-78ebea7a-7ed3-4a4a-80dd-21938b841273","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}]

Automatic investments

[{"selector":"#anim-5dc76de3-d10c-450a-aa19-a15cb3895388 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-6.36862465373019%, -9.98345652544101%) scale(1.2164502164502164)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-782a072a-e7ab-485b-831e-2b4564790f25","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8aa702ac-77f9-4863-ba82-1dbf1f2ffed5","keyframes":{"transform":["translate3d(-114.32927%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-911cd9f3-8bf5-47c7-a59d-7aa925426b32","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-89ca48d4-ef2f-4883-a6cc-d44ba1597b38","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}]

Tax benefits

[{"selector":"#anim-b98d8d87-668e-49e8-b311-da1c6d8f1407 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(7.834080324106097%, 7.227847394954825%) scale(1.2840909090909092)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-1cfea7e9-bb3f-40de-b248-108c2e82ccfc","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c30f9d9a-3a3a-4fb9-ac65-e6a77efb517e","keyframes":{"transform":["translate3d(-115.2381%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-fdbf332a-8bc8-4ec5-8ac2-fb3faea3ea37","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0bb6d6c5-1c7a-44de-ba58-55b561d934c4","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}]

Low investment amounts

[{"selector":"#anim-28696c23-68f1-429f-9149-28dbeb02de8b [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(3.1847118483169794%, -9.803921491866395%) scale(1.196078431372549)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-70227f67-dcea-4098-989f-43487c0af326","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-894b8303-8e5b-4883-9a8b-46832500251e","keyframes":{"transform":["translate3d(-113.15069%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-63e04e0a-22a6-48b1-a352-cbce556fa3d0","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ad412603-3519-403f-9031-3f7c10ed74b8","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}]

Share With Other And Read More Like This

[{"selector":"#anim-64a1e2d4-244b-47c3-b3b7-e543a1208c91 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(8.001673918886743%, 8.918830839523169%) scale(1.3378378378378377)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-1f1619bf-1603-47d3-97fa-ed4435750e15","keyframes":[{"transform":"rotate(-540deg) scale(0.1)","opacity":0},{"transform":"none","opacity":1}],"delay":0,"duration":1000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both","iterations":1}] Learn more

“I make no attempt to forecast the market—my efforts are devoted to finding undervalued securities.” Warren Buffett

Diversification

Mutual funds invest in a basket of securities like stocks and bonds. This diversification helps reduce the overall risk of investing compared to buying individual stocks.

Professional Management

Economies of scale

As mutual funds pool money from many investors, they can negotiate lower trading costs resulting in higher returns. Expenses are also spread out over many investors.

Flexibility

There are many types of mutual funds like equity funds, debt funds, hybrid funds etc. Investors can choose funds aligned to their investment objectives and risk appetite.

Automatic investments

Many mutual funds offer Systematic Investment Plans which allow automatic regular investments. This makes financial planning and investing easy.

Tax benefits

Investments in some mutual funds get tax benefits under various sections of the Income Tax Act if held for more than 1 year.

Low investment amounts

Mutual funds allow investments with low amounts like ₹500 per month. This allows participation from retail investors with limited capital.

Share With Other And Read More Like This