There are a variety of mutual funds in the market, each with different investment objectives. The minimum investment amount can be as low as INR 100, making investing accessible to everyone. You can select a fund whose investment objective aligns with your financial goals.

1. Diversification: One of the primary advantages of investing in mutual funds is diversification. Mutual funds invest in multiple instruments and companies, particularly in equity. This approach helps create a well-diversified portfolio that is subject to less volatility compared to direct stock investments. Mutual funds also mitigate risk by investing across various sectors and asset classes.

2. Liquidity: Mutual funds are highly liquid investments. Investors can enter and exit these investments at any time. Unlike fixed deposits, mutual funds have a flexible withdrawal policy. However, it’s essential to consider exit loads and lock-in periods, especially for Equity Linked Savings Schemes (ELSS).

3. Professional Management: Not all investors are equipped to make informed investment decisions. Experienced fund managers manage mutual funds, pooling money from various investors and making strategic investments across different assets. Their decisions are backed by thorough research and analysis, which helps generate significant returns for investors.

4. Small Investments: You can start investing in mutual funds with as low as INR 500. This encourages investors to initiate small savings through Systematic Investment Plans (SIPs). Mutual funds cater to all types of investors, allowing them to choose their investment amount and frequency for SIPs based on their convenience.

5. Easy Investing: Investing in mutual funds has never been easier. You can quickly invest online by directly visiting the asset management company’s (AMC) website or using online platforms that facilitate investments. Miles Wealth is one such platform that enables hassle-free, paperless investment in mutual funds, allowing you to invest from the comfort of your home.

6. Safe and Transparent: The Securities and Exchange Board of India (SEBI) regulates mutual funds, ensuring that all fund houses adhere to its guidelines. SEBI’s fund categorization helps investors understand the funds’ objectives and associated risk levels. All AMCs regularly publish fact sheets detailing fund holdings, assets under management (AUM), and other relevant information, making the investing process safe and transparent.