Online investment and management of mutual funds is a breeze – here’s a simple guide on why you need an MF investment online.
Every investor with definite financial goals to realise, makes a beeline for a suitable mutual fund (MF) investment. It all depends on which scheme you choose, what its investment horizon is, what its growth curve has been like since inception, and the kind of management that the fund manager offers.
If you are mulling over the idea of investing in a suitable mutual fund product, consider the important reasons to do so:
* Lower risk through diversification. Every investment, especially a market-linked one, carries some element of risk, and mutual funds also do. However, mutual fund products with a healthy growth curve since inception are good bets, and they offer risk mitigation especially if you stay invested for a longer period of time. The risk can be managed better via efficient asset allocation and choosing the right kind of scheme to align with your goals.
* Tax efficiency and liquidity. All MFs today offer tax rebates under Sec 80C of the Income Tax Act, 1961. The benefit is extended up to Rs 1.5 lakh per financial year. Mutual fund products also do not attract LTCG (Long Term Capital Gains) tax on returns when you sell the equity fund after one year. However, debt funds incur some amount of LTCG tax. On the subject of selling the fund, do note that mutual fund investments in India are also quite liquid: the fund house helps you encash the underlying asset quite easily in case you need to release the funds for an urgent purpose. The fund manager can also advise on the best times to buy and sell the MF.
Why invest in mutual funds online?
The online medium offers ease and interactivity when it comes to monitoring and managing your investments.
Yet, a surprisingly large number of people continue to hire the service of investment brokers and planners to invest in MF schemes. While it is fine to take advice on mutual fund product planning and choosing the best one to suit your goals, do note that you can apply for the mutual fund online by yourself without any assistance.
Leading fund houses in India encourage investors to apply for mutual funds online. Following a simple online registration process, you can start trading and purchasing suitable MF schemes after researching them on the fund house’s portal or on other sites. Your fund manager is also at hand both online and offline to offer strategic inputs from time to time.
Online MF management is much easier – you can tap into your fund’s NAVs, check historic performance, study market indices and see the current status of the fund with just the flick of a smartphone screen.
Keywords: MF, apply for mutual fund online, mutual fund products