Benefits of Mutual Funds Investment


Mutual funds allow traders to purchase the stocks of a company and make money from the long-term investment. It can help you achieve your short-term and long-term financial objectives. A mutual fund is a type of Equity Investment. Make sure that this investment is subject to market risk, meaning the demand and supply factors in the market can have an impact on the value of the stocks you have purchased from a company listed on stock exchanges. On that note, let’s dive deep into the 7 main benefits of mutual funds investment.

1.   High Returns on mutual funds investments

Owing to the high risk associated with mutual funds, this equity investment can generate higher returns. Though mutual funds can benefit all types of traders, it is highly recommended for long-term buyers who are willing to keep the stocks for at least 1-3 years.

You could make an investment when the shares are available at a low price. Mutual funds might be associated with a high risk, but they guarantee the best returns.

2.  Smooth Management

The best part about mutual funds investment is simple and smooth management. No need to monitor the performance of the stocks every day.

Once you are done investing in a company, you can leave the rest to the fund managers. Each investor is assigned a fund manager who is responsible for catering to all your investment-related requirements.

They handle the transaction on your behalf and track the performance of the company for you. The fund manager guarantees smooth and effective investment profile management.

If you plan on making an investment but aren’t familiar with the stock market, then a mutual fund is the best way to start your investment career.

3. Investment Portfolio Diversification

You don’t have to limit your investment options to the stocks of a particular company. One major benefit of mutual funds is that it allows the investor to diversify the investment portfolio by choosing the shares of different companies. That way if one company fails to perform well in the market, you will not lose all your savings on it.

As long as you have invested in other companies, rest assured that it will counterbalance your losses. Portfolio diversification plays an integral part in mitigating the risks associated with the share market.

Mutual funds are highly volatile. One way to manage the risk is by diversifying your portfolio.

4. Easy to Use

You can invest in mutual funds through three simple ways, i.e. online investment, direct investment, and brokers. A majority of investors choose online mutual funds investment as it is far easier and convenient.

All you need is a valid PAN card. There you go! Once you are done verifying your investment account, you can choose the most suitable shares and complete the transaction.

In fact, mutual funds investment allows you to make your first investment with INR 500 only. You don’t need a large capital to purchase the shares of the popular companies listed on stock exchanges.

Opt for the SIP mode and make your first investment. If you are new to the mutual fund market, consider hiring a professional advisor. They will help you make the best investment decisions.

5. Tax Benefits of mutual fund investments

Mutual funds investment offers you a tax benefit of up to 1.5 Lakh annually. Besides that, you also get tax-free returns. It is available for the investors who hold the stocks of a company for more than 12 months.

On long-term capital gains, you are supposed to pay approx 10% of taxes on the returns, i.e. if the total capital gains exceed the minimum limit of INR 1 Lakh.

6. Mutual fund Easy Liquidity

Another major benefit of mutual funds is easy liquidity. There is no denying mutual funds are highly liquid, which means you can convert your investment into cash at any time.

In other words, you could redeem your returns whenever you want. All you need to do is sell your investments and you will have the money transferred into your bank account.

The redemption process does not take longer than a week. In fact, if your investment is matured, expect the amount to be transferred in 2-3 business days.

Though experts recommend you hold the shares for at least 1-3 years, you don’t have to wait for that long.

6. Systematic Withdrawal Plan

The mutual funds market enables the investor to withdraw a specific amount from their investment to their bank at regular intervals. You get to select the intervals.

Based on this, a certain amount of your investment will be transferred to your bank account at the selected intervals.

So, these were the top 7 benefits of mutual funds investment. Despite being a volatile market, mutual funds can bring you significant profits, especially if you opt for the lock-in investment period.

So, why wait? Register an account on an investment platform and make your first investment.


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The Share Market: A Guide to Trading – Gill Broking

It is, therefore, important to learn both the pros and cons of intraday trading to get a better idea of how this market works and how exactly you can grow your money. In this post, we will walk you through a few advantages and disadvantages of intraday trading. So, keep reading to learn more.

• Beware of fixed/guaranteed/regular returns/ capital protection schemes. Brokers or their authorized persons or any of their associates are not authorized to offer fixed/guaranteed/regular returns/ capital protection on your investment or authorized to enter into any loan agreement with you to pay interest on the funds offered by you. Please note that in case of default of a member claim for funds or securities given to the broker under any arrangement/ agreement of indicative return will not be accepted by the relevant Committee of the Exchange as per the approved norms.
• Ensure that pay-out of funds/securities is received in your account within 1 working day from the date of pay-out.
• Be careful while executing the PoA (Power of Attorney) – specify all the rights that the stock broker can exercise and timeframe for which PoA is valid. It may be noted that PoA is not a mandatory requirement as per SEBI / Exchanges.
• Register for online applications viz Speed-e and Easiest provided by Depositories for online delivery of securities as an alternative to PoA.

• Do not keep funds idle with the Stock Broker. Please note that your stock broker has to return the credit balance lying with them, within three working days in case you have not done any transaction within last 30 calendar days. Please note that in case of default of a Member, claim for funds and securities, without any transaction on the exchange will not be accepted by the relevant Committee of the Exchange as per the approved norms.

• Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your broker settles your account and, in any case, not later than once in 90 days (or 30 days if you have opted for 30 days settlement). In case of declaration of trading member as defaulter, the claims of clients against such defaulter member would be subject to norms for eligibility of claims for compensation from IPF to the clients of the defaulter member. These norms are available on Exchange website at following link: NSE, MCX

• Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin/ collateral MUST remain in the account of the client and can be pledged to the broker only by way of ‘margin pledge’, created in the Depository system. Clients are not permitted to place any securities with the broker or associate of the broker or authorized person of the broker for any reason. Broker can take securities belonging to clients only for settlement of securities sold by the client.

• Always keep your contact details viz. Mobile number/Email ID updated with the stock broker. Email and mobile number is mandatory and you must provide the same to your broker for updation in Exchange records. You must immediately take up the matter with Stock Broker/Exchange if you are not receiving the messages from Exchange/Depositories regularly.

• Don’t ignore any emails/SMSs received from the Exchange for trades done by you. Verify the same with the Contract notes/Statement of accounts received from your broker and report discrepancy, if any, to your broker in writing immediately and if the Stock Broker does not respond, please take this up with the Exchange/Depositories forthwith.

• Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the trading member, compare it with the weekly statement of account sent by broker and immediately raise a concern to the exchange if you notice a discrepancy.

• Please do not transfer funds, for the purposes of trading to anyone, including an authorized person or an associate of the broker, other than a SEBI registered Stock broker.

• Do not deal with unregistered intermediaries (who are not registered with SEBI/Exchanges).

Names and contact details of all Key Managerial Personnel including Compliance Officer

Sr. No.Name of the IndividualDesignationContact NumbersEmail Id
1 Charanpreet GillCEO/
2 Charanpreet GillWhole Time
3 Charanpreet GillCompliance
4Manpriya GillDesignated
5Kewal GillDesignated

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