Mutual Funds have become the most widely used mode to invest and grow wealth in the long run. However, selecting suitable funds and creating a Mutual Funds portfolio that aligns with your financial goals is crucial to achieving this.
Overview of Mutual Funds portfolio
Mutual Funds are an investment vehicle that enables investors to pool their money in hopes of reaping returns on their funds over time. These funds are managed by professionals called fund managers who invest the fund's corpus in securities like stocks, Bonds, gold, etc., to maximise the returns. The gains, if any, are then shared collectively by the investors.
Advantages
When you carefully select your MF Portfolio, you can enjoy the benefits of Mutual Funds. These advantages include:
- They ensure better risk management since they invest in diverse assets.
- They are also liquid since you can redeem the units of open-end Mutual Funds whenever needed.
- You can benefit from the opportunity to earn potentially higher returns on your investments in the long run.
- They are managed professionally by experts who have the required knowledge and access to tools to ensure reasonable returns.
- Having funds like Equity-Linked Savings Schemes in your portfolio of Mutual Funds can also provide tax benefits.
However, you need to thoroughly know your investment horizon, risk appetite, and monetary goals to make the most of your investments. This is when a Premium Account comes as a boon.
How does a Premium Account help?
When you open a Premium Savings Account with a reputed bank, you can thoroughly review risks. This lets you determine your risk appetite, financial objectives, investment horizon, etc. Armed with this data, you can build a beneficial Mutual Fund portfolio that enables you to take care of your short- and long-term goals. As a Premium Account holder, you also enjoy the following benefits:
- Exclusive access to the latest market updates and research reports from your bank's research group as annual, monthly, weekly, and daily newsletters
- Detailed factsheets on the top quartile Mutual Funds
- The opportunity to instantly invest in the funds of your choice from your Digital Banking platform
- Enjoy access to a consolidated dashboard that allows you to view your investments in real-time.
- Review your portfolio and ensure it meets your financial goals in the long run.
- You can also contact your dedicated relationship manager for assistance with your Mutual Funds portfolio management.
Besides this, you can choose your Mutual Funds from the following major categories based on your risk appetite and goals:
- Debt Funds
- Equity Funds
- Liquid Funds
- Balanced Funds