Mutual Funds are a widespread and intelligent investment tool and a great practice for people investing in them. It is a great option for investors because it provides a cost-effective and highly convenient way to capitalize in the ever growing financial markets.
Proper and well thought off wealth management India started in a later stage. The concept of mutual funds investment came in India in late 1900s and approximately in the year 1963. This initiative was taken up by the Reserve Bank of India under the head of the Government of India. The conditions of Indian financial sector were not very well after years of independence and this was a reason why this sector had a slow growth. By the year 1987 the growth accelerated because the non-UTI players entered the financial sector and people showed a keen interest in them then.
Mutual fund performance after its growth compounded to an annual acceleration of 31.25%, especially, in from March 2003 to March 2011. Wealth management solutions were not very keenly appreciated by the people, especially if it means involving a financial consultant. The reason behind this was that people never found any neutral consultant to discuss the overall wealth management India.
Mutual funds investment is considered very advantageous because it provides tax benefits, liquidity, affordability, and professional wealth management with security as well. The major part about mutual funds is that it helps in providing maximum returns by efficiently putting the hard earned money into correct savings. Another benefit if you allow systematically into mutual funds is that it allows you to then invest in debt markets and equities through well thought off investment plans.
By investing in mutual funds an investor can start with an exposure of as less as rupees five hundred which he or she can continue for a longer period of time. A long term commitment with mutual funds can benefit by cost averaging later on. This can get a return of the investment and the amount would be really large which can meet your future commitments.
Securities and Exchange Board of India (SEBI) is the regulatory body of the securities markets and a mutual fund holder is required to be registered with SEBI. In fact, SEBI regulates the securities markets before it can start collecting mutual funds from the public. SEBI acts like an organisation that collects money from fund investors and invests the money in bonds, stocks, short term money-market instruments other assets or securities and perhaps, in a combination of the above mentioned investments.
There are a variety of schemes when it comes to mutual funds and these take care to the needs like, risk tolerance, financial position and return expectations. Financial consultants are the best advisors when you wish to have information about all these types of investments.
Investments are a very important part of a person’s life, because these are the savings that help you later on in life and make you lead towards a safe future. For better wealth management solutions you can always visit a financial consultant for better and well planned mutual funds investment.