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There are a lot of investment avenues. Why should one invest in Mutual Fund ?
Returns from Fixed Deposits is fixed and low. If you consider inflation, then returns from FD comes down very low. Many a times, FD return may not even beat inflation, resulting in negative returns overall.
If one wants to build capital over long term, one must consider Mutual Fund. Average returns from Mutual Funds over 20 years have been over 15%. In long term, how even slight increase in returns make big difference. See the example below:
Compare returns from FD and Equity MF, if invested Rs 10000 per month for 30 years. Accumulation from FD (8%) after 30 years would be 1.4 Cr while the same from Equity MF (12%) would be 3.0 Cr and Equity MF (15%) would be 5.6 Cr. You can see that minor difference in rate of returns play a big role in longer term.
See the returns from some of the top MFs over long term in the chart below:
Complete Investment Flexibility
Mutual Funds provides complete flexibility, like:
- You can invest any amount one time, called Lumpsum (Usually minimum Rs 5000 is required to be invested as Lumsum amount).
- You can start Systematic Investment Plan (SIP) with as low as Rs 100 per month (however, some funds have minimum SIP of rs 500 or Rs 1000).
- You can cancel your ongoing SIP anytime to start new SIP of increased or decreased amount.
- You can Redeem your investment anytime (Only ELSS funds have lock in of 3 years).
- Minimum or no charges on Redeeming your investment (Equity funds charge only 1% of sum if withdrawal within one year of investment).
So, what are you thinking about? Contact us for setting up your MF investment for longer duration for financial independence.
Happy Investing. Click HERE to start your paperless investment today.