Benefits of Mutual Funds

Mutual Funds

Benefits of Mutual Funds

BENEFITS OF MUTUAL FUND, Friends, in this series of MUTUAL FUND today we will learn - about the benefits of Mutual Fund, what benefits we get from investing in Mutual Fund, and how we can benefit from investing in Mutual Fund is.

Now it is not that, investing in Mutual Fund should only benefit everyone, it also has some disadvantages, so in this topic, we will also talk about the loss or RISK from investing in Mutual Fund.

Also, you visit the below article, so you can easily understand mutual funds.


The biggest reason for undertaking Mutual Fund Investment is lack of information about stock market investment, or lack of time, lack of capital, and control of investment risk.

There are many such reasons, due to which we want to avoid the risk of investing directly in the stock market, and want to invest with the help of mutual funds, so that we can get a better return on our investment.

In this case, if we talk about BENEFITS OF MUTUAL FUND, then it has many benefits, let's talk about some major advantages of mutual funds.


1. Knowledge and experience advantage of stock market expert - 

The biggest advantage of mutual fund investment is that we get the benefit of the knowledge and experience of the experts who handle the fund.

Especially those who do not have any knowledge of the stock market and invest in the mutual fund to earn a better return on their investment, so they get the benefit of their knowledge and experience of the mutual fund manager on their investment.

2. Benefits of Small Capital Investment -

If mutual fund investment is being made every month through SIP, then 500 rupees can also be invested in the mutual fund every month, and also those who have small deposits as savings. This small amount can be invested properly with the help of mutual funds.


A Mutual fund is a diversified investment in itself, where according to the OBJECTIVE of MUTUAL FUND is invested in different industries and sector-wise stocks, and the investor naturally gets the benefit of DIVERSIFICATION.

Especially when our investment capital is low, yet we can take advantage of diversification with the help of mutual funds.

4. Time-saving-

Once an investor, the mutual fund makes an investment, then it is the responsibility of MUTUAL FUND manager, fund houses, and fund manager to invest when it is put your time STUDY and analysis of how stock and How long to do.

In this way, the time of a common investor is saved, and he does his job and business easily, and the fund house is responsible for looking after the investment.


MUTUAL FUND is a WELL REGULATED and ORGANIZED INVESTMENT MARKET in India, which includes the Ministry of Finance, RBI, SEBI, and Stock Market, and thus with the help of Mutual Fund, the common investor gets the benefit of investing in this ORGANISED market.

6. Investment liquidity-

Liquidity means the time it takes to CASH an investment.

Liquidity is a very important thing in any investment because due to lack of LIQUIDITY in the investment, the investment does not work at any time of sudden need or the investment has to be sold cheaply, due to which the investor has to suffer a lot of loss.

One advantage of investing in a Mutual Fund is that we can easily sell the amount invested, as per the pre-fixed conditions of the Mutual Fund on MARKET RATE and CASH it.

In this way, we also get the benefit of liquidity from MUTUAL FUND investment.

7. Benefits of choosing Mutual Fund as per need-

Today there are thousands of offers available in the mutual fund market, and as new offers keep coming, an investor has a lot of options, and the investor can choose a better fund for himself, keeping in mind his needs.

8. Benefits of TAX-

The benefit of DIVIDEND from MUTUAL FUND is TAX-FREE, thus the investor gets the benefit of tax-free investment. Also, there are many different mutual fund offers, in which the facility of saving tax is given by the government.

These are some of the common benefits of a Mutual Fund, apart from this there are many other benefits of mutual fund investment. And some benefit also depends on the investor, what kind of benefit an investor is taking from an investment.


Now let's talk about the loss of mutual funds.


The manager of any mutual fund is a key person who controls the risks and returns of the investment with his knowledge, now the mutual fund manager is also a job person, and if the job is CHANGE, or If the fund is left in the middle for any other reason, then the general investor has to suffer the loss of such change due to the negative loss on PERFORMANCE of the fund.

2. lack of control-

You can not give any kind of advice to a MUTUAL FUND Manager, Mutual Fund Manager has complete freedom to select stock, in such an investor lacks complete control over his investment, and we can only wait that The fund manager should do a good job so that we can get better benefits.

3. No GUARANTEE is given for how much profit will be made from MUTUAL FUND-

There is no guarantee of any benefit or FIXED RATE of RETURN in relation to the profit from mutual fund investment, and sometimes mutual funds either give very little or give negative profit.

4. Mutual fund fee burden-

There is no GUARANTEE of profit from mutual funds, but the fees charged for managing that fund are fixed in advance, and it is debited from the amount invested.

5. Confusion in selecting MUTUAL FUND offer-

There are so many mutual funds offers available in the market today that we are often in a lot of confusion, and do not select the mutual fund quickly - we do not know which mutual fund investment will be better for us, and often we Asking our friends or financial advisor or on the internet these questions keep asking "which MUTUAL FUND is the best for us".



"Mutual fund investment has its advantages as well as some disadvantages," in such a situation, if you have any other type of investment plan or investment option better than the mutual fund, then you can undoubtedly invest in that plan.

But my personal opinion is that "You can invest a part of your investment portfolio in mutual funds", and the other thing-

Before any kind of investment, we should keep our financial planning in mind, only then we can earn better and desired profit.

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