In 1963, it started with the establishment of the UTI
or Unit Trust of India. Later, in the early 1990s, the country’s mutual fund
sector gained momentum with the start of economic reforms.
Today, the mutual fund industry, along with some
reputed asset management companies in
India, has many things to offer. Some of these are debt funds, equity
funds, thematic funds, hybrid funds, etc. Let us discuss how the mutual fund
industry is playing a vital role in changing India's asset management sector.
Mutual Fund: what
is it?
Mutual funds usually serve as collective investment
vehicles. These financial instruments can bring together various funds from
many investors and can create a remarkable portfolio of bonds, stocks, etc.
Generally, professional fund managers manage these
investment pools. They make some strategic decisions to maximize returns for
the investors.
Mutual funds are usually different from others because
they can democratize investment opportunities. Moreover, they can offer access
to diversified portfolios even to small investors. So, it is always a good idea
to rely on mutual fund investments guided by a reputed and fastest trading platform in India.
How have mutual
funds helped the asset management sector?
Many factors contribute to
the rise of mutual funds and its role in resurrecting asset management
companies in India.
1. Transparency
Almost all mutual funds have a Scheme Information
Document that is available on the website of the fund house. This can offer you
all the vital details regarding the fund manager, its holdings, etc. Moreover,
the AMC website publishes the portfolio investment value every day. This helps
investors to track the mutual fund’s portfolio.
2. Diversification
Mutual funds can lower risks by spreading investment
across different types of securities and asset categories. For example, equity
mutual funds usually invest in various types of stocks across sectors,
eventually reducing risk.
3. Liquidity
Investors can easily redeem their investments on any
working day. So, no matter what kind of mutual fund investment you have, you
will get your money in your bank account within just 1-3 days. However, ELSS
mutual funds normally have a three-year lock-in period.
4. Choice
Nowadays, you can invest easily in any of the different
types of mutual fund options. Some of those are flexi-cap funds, Liquid funds,
solution-oriented mutual funds, etc. Seeking the help of the fastest trading platform in India can help you get lucrative returns from these
funds.
5. Tax-Savings
You can enjoy remarkable tax savings by investing in mutual
funds. For example, in ELSS mutual funds, investing up to Rs. 1 50,000 can
qualify for tax benefits. Moreover, if you hold your mutual fund investments
for a longer term, you will enjoy notable tax savings.
Thus, it comes as no surprise that many people are now
relying on reliable asset management
companies in India.
If you are also looking for a reliable investment
option, you may trust one of the fastest
trading platforms in India, for mutual funds investment.
Summary: Mutual funds have
a notable impact on asset management companies in India nowadays. So,
you may easily invest in the fastest
trading platform in India and enjoy good returns in the long term.
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