Topic 4: Where to Invest to Build Wealth Over Years?
Among various financial products, Financial Advisors advise retail investors to take the mutual funds route
For long term wealth creation, investors have various choices. From investing through fixed income instruments to equities, to gold and real estate, investors can invest in one or a combination of these asset classes to create wealth. They can also invest directly or through indirect channels like mutual funds, NPS, post office savings instruments, etc. Financial planners & advisors, however, mostly vote for the mutual fund route when it comes to the issue of long term wealth creation by retail investors.
Advantages Of Investing Though Mutual Fund Route For Long Term Wealth Creation
Source: Economic Times
For long term wealth creation, investors have various choices. From investing through fixed income instruments to equities, to gold and real estate, investors can invest in one or a combination of these asset classes to create wealth. They can also invest directly or through indirect channels like mutual funds, NPS, post office savings instruments, etc. Financial planners & advisors, however, mostly vote for the mutual fund route when it comes to the issue of long term wealth creation by retail investors.
Advantages Of Investing Though Mutual Fund Route For Long Term Wealth Creation
- Mutual funds are one of the low-cost investment products
- Tax savings through ELSS act as an accelerator for investors portfolio
- For a small fee, a mutual fund investor get the services of experienced fund managed team
- ELSS have the shortest lock-in among tax saving investment options
- High standards of regulations make mutual funds less risky instruments
- Gains from all equity mutual fund investments earned in over a year of investing is tax free
- Specified mutual fund schemes - Equity Linked Saving Schemes (ELSS), Pension Plans and some others, enjoy additional tax benefits
- The SIP route to investing in mutual funds inculcate investing discipline
Source: Economic Times