Get A Good Return On Your Invested Amount

Get A Good Return On Your Invested Amount

Among all the options in the finance market these days, people love to go for the mutual fund more. This is the option where one can start an investment as low as 500 rupees per month. The flexibility offered to the investor by the mutual fund companies is the strongest side that has proven useful to the investor, and it is the main driver of the popularity of this investment avenue in the market. Though there are ample options in the market available as far as the investment is concerned, each of them has either high risk or low return. The mutual fund is the only tool where one can get a moderate return at moderate risk.

The mutual fund:

For the small investors who are concerned with the safety of their money invested, the mutual fund is the safest option. One can go for the direct mutual fund investment after a little research or advice from an expert. The investment system here is too simple. One can also go for the online option where he needs to fill certain details in a form online and transfer the money via net banking or another online option.

The investment:

For every investment in this segment, one is provided with units that are of equal value to the invested amount if there is no charge. In a mutual fund, one can find the systems such as open-ended and closed-ended where one can either withdraw the money as and when required or he has to keep money invested for a particular duration. There is also the ELSS type which can help one save income tax on the amount invested in this type of mutual fund. Every company has a specific person who is responsible for the investment of the fund in the share market. He is known as a fund manager. He needs to see the market and decide which shares he can have a better value in a short period. Hence, he can invest money or withdraw from the market according to which the profit is decided and the NAV is also derived from such transactions only.

The redemption:

Those who have gone for the direct mutual fund investment via online mode can place the request via online option also else one can ask the company to take redemption request in offline mode. In a couple of days after the request, one can have the credit of the concerned amount in his account. Hence the moment one needs to have his amount or withdraw, some of the amounts can easily get it as and when he needs the same. Overall one can say that the system of a mutual fund is much transparent, and one can easily know how much fund he has and what is the NAV of a concerned day.

The investment, as well as the withdrawal system in a mutual fund, is quite investor-friendly. It is also an option where one can go for investment in instalments and create a good portfolio over a period. Hence it has been the choice of many investors in the present era.

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