As the investing world is full of options for your retirement money, but still mutual funds is the best investment option for retirement planning. Mutual Fund investment protects the money you invest and guarantees a specific rate of growth. Here are some reasons to invest in mutual funds for retirement planning:
Built- in diversification: When you purchase a mutual fund, your money is combined with the money from other investors and you become eligible to buy a part of a pool of investment. A mutual fund holds a wide range of investments which makes it easy for an investor to diversify stocks on the basis of market fluctuations.
As different mutual funds have different performance, holding a variety of investments help investors to offset the impact of poor performing funds and get benefited of the earning potentials.
Managed Professionally - Mutual funds are known for professional management. By investing in MF schemes, you as an investor can pool your money with other investors. But, not every investor has enough skills, knowledge and time to manage his or her own investment. In such cases, investor should hire a financial planner who can take right investment decision on investor’s behalf.
An experienced fund manager always invests the money in a right fund and takes appropriate decision to buy and sell investments.
Easy to Buy and Sell: Mutual funds are widely available through banks, financial institutions, financial service providers and trust companies. If an investor is in emergence need of money, he can immediately sell his fund units at any time before the completion of investment tenure. However, in such condition, he may get back less than the money he has invested.
Available options for investment: Mutual funds can be an ideal option for retirement planning. Retirement plans varies as per the investor’s portfolio and risk appetite. Investing in equity funds, gives best chance to build enough savings to support them through retirement.
Also, if an investor approaching retire is less comfortable with risk & interested in fixed income investment, he or she may prefer debt fund (a bond fund) that guarantees a fixed ROI after the completion of investment time horizon.
Submitted April 25, 2019 at 09:14AM by himanshu2019 http://bit.ly/2GvLZW8
