7 Important Reasons why you should invest in Mutual Funds today!

7 Important Reasons why you should invest in Mutual Funds today!

Mutual Funds (MFs) are a viable investment option for people looking to grow their wealth and achieve the financial goals they set out to achieve. These funds offer investors a way to diversify their investments and benefit from professional fund management. In this blog post, we'll discuss 7 great reasons one can consider investing in MFs today! Let’s also explore some of the best SIP investment plans ICICI Bank has to offer.

Benefits of Mutual Funds:

MFs can help investors in many ways, they include:

1. Diversification

One of the best advantages of investing in MFs is diversification. They allow investors to spread their money across a spectrum of securities such as stocks, bonds and other asset classes. This diversification reduces the overall risk of an investor’s portfolio and ensures their investments are not overly dependent on just one security or asset class.

At ICICI Bank, we have a range of Mutual Funds that can diversify investments across different sectors and asset classes. For example, the ICICI Prudential Equity & Debt Fund invests in a combination of equity and debt securities, providing investors with a diversified portfolio that balances risk and optimises returns.

2. Professional Fund Management

MFs offer Professional Fund Management. These funds are managed by experienced and successful Fund Managers with the knowledge and expertise to identify the best investment opportunities and minimise risk. Fund Managers use various tools and techniques to analyse market trends and opt for securities that offer the best potential returns.

At ICICI Bank, our MFs are managed by experienced Fund Managers who abide by disciplined investment protocols to identify ideal opportunities in different market conditions. Our Fund Managers have a proven track record of delivering consistent returns to investors over the long term.

3. Easy Access

Investing in MFs is seamless and convenient, even for first time investors. People can buy the funds online or through a financial advisor and begin with a small amount of money. The option to invest small has made Mutual Funds an accessible investment option. ICICI Bank’s wide range of MFs caters to different investment goals and risk profiles. Our online platform lets investors purchase and redeem Mutual Funds with ease and manage their investments from anywhere, anytime.

4. Tax Benefits

Investing in MFs can also earn Tax benefits to investors. Certain types of funds such as Equity Linked Saving Schemes (ELSS), provide Tax benefits under Section 80C of the Income Tax Act of 1961. Investors can claim a deduction of up to Rs <1.5> lakh per year on investments made in ELSS, reducing their Tax liability.

Our ICICI Prudential Long-term Equity Fund (Tax Saving) is an ELSS scheme that offers investors tax benefits while providing exposure to quality equity investments.

5. Professional Risk Management

In a way, MFs also offer Professional Risk Management services to investors, without actually charging them for it. Fund Managers use many risk management techniques to mitigate potential risks associated with investing in securities. These techniques includes diversification, asset allocation and hedging strategies to name a few.

At ICICI Bank, our approach to risk management ensures that our funds can deliver consistent long-term returns to investors, with minimal risk.

6. Low Cost

MFs are also a cost-effective investment option for investors. They have a lower entry cost than other investment options such as stocks or real estate. In addition, MFs also have lower transaction costs and management fees compared to other investment options in the market.

At ICICI Bank, we offer a range of MFs with low management fees and expense ratios, which makes them an affordable investment option for investors.

7. Long-term Returns

The most important reason to invest in MFs is the potential for long-term returns. While there is no guarantee of returns on any investment, MFs have historically and statistically delivered higher returns than other investment options such as Fixed Deposits (FDs) or Savings Accounts. Over the long-term, investors can and do grow their wealth aplenty through compounding, which multiplies the value of MFs.

Conclusion

Investing in MFs is an effective way to grow wealth and achieve your financial goals, if you’re willing to play long-term. By investing in an MF, you stand to benefit from Diversification, Professional Fund Management, Tax Benefits and Long-term Returns.

At ICICI Bank, you will find the right Fund that serves your investment goals and suit your risk profiles adequately. Consider investing in MFs today to take advantage of the potential they have for long-term growth and financial security. Get in touch to know best SIP Investment plans today!