Why buy mutual funds online or through an adviser

Professional management 

Mutual fund investments give investors access to professional management for their funds. Professional management has many advantages like a clear investment objective, investment based research and prudent investment processes etc. This is one of the many advantages to buy mutual funds online or via an advisor.

Affordable portfolio diversification

Diversification helps reduce the risk of a portfolio and hence gives better risk adjusted returns. Even a small investment, say of Rs 500, gives investor’s ownership of a portion of a diversified investment portfolio.

Economics of scale

Pool of investors together results in large sums of money which gets investors access to professional managers to manage their funds which individual investors cannot do. Along with the higher transaction volume, mutual fund investors get to negotiate better terms with brokers, bankers and other service providers. This is a distinct economic advantage to an investor in terms of cost saving.

Liquidity

Investments like real estate, venture capital, PPF where the investor cannot easily sell his investment in the market or get immediate access to funds as per their needs, are technically called illiquid investments and may result in losses for the investor.

Depending on the type of mutual fund, they can be liquidated, either at any time, or during specific intervals, or at times only on closure of the scheme.

Tax deferral

Mutual fund investors can let their investment grow in a scheme for several years and with this, they can defer their tax liability. This helps investors to legally build wealth faster than would have been the case, if you were to pay tax on income each year.

Tax benefits

Tax saving mutual funds (ELSS) give the benefit of deduction of the amount subscribed (up to Rs. 150,000), from the income that is liable to tax.

Dividend received from mutual fund schemes is tax-free in the hands of the investors. However, dividends from certain categories of schemes are subject to dividend distribution tax, which is paid by the scheme before the dividend is distributed to the investor.

 Long term capital gains is 10% and short term capital gain is 15% and gives mutual funds a definite advantage over other asset classes like real estate, debt etc.

Investment comfort

Investment in mutual funds can be made very easily and additional purchases need minimal paperwork. In today’s world mutual fund investment can be done completely online, you can buy mutual funds online by installing our EzeeHouse App from Google play store.

Regulatory comfort

Mutual funds are regulated by Securities & Exchange Board of India (SEBI) and SEBI has mandated strict checks and balances in the structure of mutual funds and their activities.

Systematic Approach to Investments

Mutual funds let investor invest regularly with a Systematic Investment Plan (SIP); or withdraw regularly with a Systematic Withdrawal Plan (SWP); or move money between two schemes with Systematic Transfer Plan (STP). These approaches promote investment discipline and are extremely useful in long-term wealth creation and protection.

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For More Info :-Best Mutual Funds To Buy Online