One of the most essential aspects of life is financial stability. So, to achieve it, it is very important to invest timely and in the right manner. Every individual has two goals; short-term and long-term. However, it doesn’t matter what your goal is; the best way to achieve them is by investing in mutual funds.
To invest in the same, there are tons of mutual funds apps in India available, but in order to get the best returns, it is important to choose the best one. Further, in the back end, these mutual funds are managed by professional fund managers who have the expertise and resources to make informed investment decisions.
What are mutual funds?
As the name suggests, it is a type of investment instrument that pools money from multiple interested investors to purchase securities. These securities include bonds, stocks as well as other assets.
The value of mutual funds is determined by the value of the underlying securities, and a professional fund manager manages it. Moreover, this type of investment scheme offers investors to diversify their portfolios and gain exposure to a variety of assets with a relatively small investment.
What are the pros of investing in mutual funds?
● Start small
One can even start investing with as little as Rs 500/-. So it is not necessary to wait to accumulate enough cash to make investments, as a SIP can be initiated with even this little amount.
● Tax saving
To reduce the taxable income by as much as Rs 1,50,000, investing in an ELSS (Equity Linked Savings Schemes) fund is advisable. This comes under Section 80C of the Income Tax Act 1961.
● Higher returns
If we talk about long-term investments, mutual funds have the potential to generate higher returns than stocks. This is because stocks are generally volatile in nature.
● Lowest lock-in period
If you invest in tax-saving mutual funds, they have the lowest lock-in periods of only three years. This is lower as compared to a maximum of 5 years for other tax saving schemes like fixed deposits, PPF etc.
Which is the best mutual fund app in India 2023?
Bajaj Finserv, without any doubt! Now, I’m not promoting any brand or organization here but just sharing my personal experience so readers can understand and easily invest. Here is a step-by-step guide:
- Download the application via the Play Store/App Store
- Sign up after entering your mobile number
- On the home page, go to the Mutual funds under the Investment Bazaar section
- Explore the funds and move forward as per your suitability
When you plan to invest in mutual funds, keep in mind to use the mutual funds apps in India. This is because, since the onset of technology, investing has become as easy as ordering groceries from your smartphone.