Asset Allocation Through Mutual Funds
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| Assets allocation |
There are several advantages of arriving at an optimum asset allocation for your portfolio by investing in mutual funds compared to directly investing in stocks or fixed return investments. Here is how.
How to Benefit Asset Allocation Through Mutual Fund.
1- Affordability:
Mutual fund investing is affordable . That is because the minimum amount to be invested in a mutual fund is low and you get access to a diversified portfolio even with a very small amount of money. That means Asset Allocation Through Mutual Funds is very easy way for investment.
2- Flexibility:
Likewise, investors who need flexibility to exit their investment (in case if open-ended schemes) as and when they feel like, find mutual funds convenient for the easy exit option they offer.
3- Transparency:
There is a deal of great transparency in the way investments are done and managed by the fund managers as the industry wall regulated and falls under the purview of the market regulator, SEBI.
4- Expert management:
Your mutual fund investments are handled by experienced professionals who are we bored with the changing dynamics of the markets and economy.
5- Easy diversification:
Mutual funds score the most interest of intent and easy diversification they offer by spreading your money across different investments in equity, fixed income, gold and real estate.
With an optimum asset allocation strategy, mutual funds give you the ability to make the most of your investments while spreading out your overall risk
"An investor education initiative by Mutual Fund Status"
Mutual fund investments are subject to market risks, read all scheme related documents carefully.:
Asset allocation is the process of combining asset class such as stocks, bonds, and cash in a portfolio in order to meet your goals.
You should consider an asset allocation strategy based on:
• Time horizon :
How long you expect you'll need your assets to last
• Risk tolerance:
How willing you are to endure the market's ups and downs in exchange for more growth potential over the long term. Financial situation
• Financial situation:
Including your lifestyle and assets.
