A number of benefits accrue when one invests through a mutual fund and a few for the ease of reference are as listed below. Mutual funds are of a great use for all those with the urge to invest in stock market but do not know ABC of stock market. One will be better of investing through stock market due to following factors.
Safety
Reduces Risk
Automatic Reinvestment
Reduces Risk
Daily Pricing
Less risk
Income Tax rebate:Under section 80L of Income Tax Act ,the income of the investors is exempted from income tax. Sncome of the investors is exempted from income tax. So this further helps the investors to have more savings
Transparency
Flexibility
Daily Pricing
2. However no investment is without risk factor and it is best to know them and same are as stated below:
Fluctuating-Returns
Misleading Advertisements
Taxes- Fund managers are not considering your tax liability as selling by them may trigger your long term capital gains tax.
Dilution
Costs
No Guarantees
Automatic Reinvestment
22 May 2009
Mutual Funds Investment: Pros and Cons
Mutual Funds Investment: Pros and Cons
2009-05-22T14:28:00+05:30
Analyst
Mutual Funds|
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