Everyone will tell you that investing in a mutual fund is a good idea and it probably is because where else will you get to invest in the equity and debt markets without having to bother about knowing how to understand them. Making the decision to invest in a mutual fund, however, is the easy part. The difficult part comes when it’s time to choose a fund or an asset management company to invest with. There are quite a few companies like Birla Sun Life Mutual Funds out there offering mutual funds and making a decision is a matter of some research but to help you narrow that search, here are some things, or benefits, that you get access to when investing in Birla Sun Life Mutual Funds.
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Benefits of Birla Sun Life mutual funds
The benefits offered by Birla Sun Life Mutual Funds can be classified into the funds that they offer based on the objective of the investor and the options that these funds can come with.
Wealth creation
The wealth creation plans offered by Birla Sun Life Mutual Funds are actually long term investments that aim to help investors grow their wealth. Currently there are 7 plan on offer (this figure can change depending on the company) and they offer investment opportunities in equities and gold. They are long term investments and can even invest in multi-national companies allowing investors to reap the benefits of the growth of a company outside India.
Tax savings
Tax saving mutual funds or ELSS are mutual funds where the investments are made in the debt or equity markets but the money invested in them by an individual is eligible for tax benefits. These funds have a lock-in period of 3 years, which is good because many of the other tax saving investments offer 5 year lock-ins. These plan offers 3 key benefits, the first is the obvious tax benefit on the investment, the second is that they too can help your money grow and the third is that right now the government has declared that long term capital gains from tax saving mutual funds will be tax free. It is worth noting that this offer can be withdrawn at any time so it would be best to check up on it before invest.
Savings
The savings plans are mutual fund investments that are meant to help investors save. They do this by concentrating on low risk investments and the debt markets. They can be a good idea for anyone who is investing in mutual funds for the first time and can’t afford to take too much of a risk. Some of these funds will invest in debt market instruments with short maturity periods and then too only those that are of the highest quality.
Regular income
A regular income plan, as the name suggests, are mutual funds that come with a risk rating of moderate and are designed to supplement the investor's income. This is done by offering plans that can provide monthly pay-outs. These are all long term investments and are made mostly in the debt markets with a small portion, about 10% to 15%, being invested in the equity markets to enhance the growth of the funds.
General options
Some of the other options that Birla Sun Life mutual funds can offer are:
- Systematic investment plans allowing for monthly payments
- Variety of risk profiles ranging from low to high
- Freedom for timing the markets
- Funds that are managed by extremely experienced fund managers
If you are pretty convinced that these are the investments that you wish to go in for, you must remember two things above all. The returns in a mutual fund are never guaranteed and that no matter which fund you invest in, the element of risk will always be there.
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