Financial investment is an issue that never ceases to worry an individual. It plays a valuable role in the management of finances. We have options galore, but we never seem to find the solution we are looking for. In this scenario, it is best to consider what majority of financial advisors suggest: Mutual Funds. Mutual funds are perhaps the most flexible investment option, returning benefits that are more favorable than other investment deals. Here are 5 reasons why you should invest in mutual funds today.
It Will Be Well-Adjusted With Union Budget 2017 And The GST Bill
Union Budget 2017 is going for a complete economic reform in the country as far as taxation, monetary transactions and market values are concerned. So we need the most flexible option for financial investments. Mutual funds give us exactly that. It is an inflation and deflation adjusting scheme that will ensure that our net asset worth never falls irrespective of the market scenario. With GST bill being introduced there will be a huge economic deflation and inflation in the market prices simultaneously. In this potential market chaos, it is very necessary to have a well-adjusted investment option. Since there are many schemes under mutual funds, deflation will mean a certain amount can be withdrawn giving maximal returns and inflation will mean that a certain amount will be saved in mutual funds which can be withdrawn later with better returns. Thus it is a very flexible option.
Will Increase Ability To Purchase Valuable Assets Like Real Estate
One of the most potential effects of demonetisation and the Union Budget 2017 will be seen in real estate. Where prices were multiplying every year, there will be a major fall. But this fall will only last for the initial few years, so investment in mutual funds today is very important. With a scheme that ensures potentially high return rates, and where money can be withdrawn any time based on the net value available in the account, the purchase of real estate will become much easier. And today real estate is the trending way to increase your net worth in the market.
Income Tax Slab Rates Will Be Broadened So More Money Can Be Invested
“The more you invest, the better is your return” is the policy followed by mutual funds. Also for an emergency situation, it has various flexible schemes under it so that you can divide your monetary assets and invest them in separate schemes. Now with the income tax slab rates being broadened with the introduction of Union Budget 2017, there will be more money at the disposal of the higher earning sections of the society. Thus investing in different schemes will become easier. So, why put all your eggs in one basket? Go for Mutual Funds and invest your money smartly.
Initial Investment Amount Is Low
The most advantageous factor about Mutual Funds is that it is an investment everybody can afford. With demonetisation, India is making its economy a platform for cashless transactions. But the small-scale investors in India will go through a huge setback. They are financially weaker and sometimes are not familiar with the cashless procedure. Mutual Funds provide an option of investing a very low amount of money initially to make an account. And it is totally open to investment via cash.
Complete Transparency In Financial Transactions
The financial transactions in case of mutual funds are taken care by expert professionals and ensure complete transparency as the details are updated and sent to the beneficiary regularly. It also clearly states how the money invested is generating returns and what is the net worth of different schemes, in case a withdrawal is considered.