Why investing in Mutual Funds is beneficial for your long term goals

Whether you are just a beginner and want to know in detail about mutual funds in general and why are they best fit for your investment needs or someone who is already an advanced investor and just needs a reminder why they are best suited for all your financial planning, goals and lifestyle, here are a few advantages and benefits of mutual funds that you should be knowing:

1. Mutual funds are simple and easy to understand

Mutual funds usually do not require any experience or prior knowledge of economics, financial statements, or financial markets in your journey to becoming a successful investor because of its simplicity.
What is a mutual fund? A mutual fund is a type of investment security that enables the investors to pool in their money together into one particular investment that is managed professionally. Mutual funds can be investing in stocks, bonds, cash, and various other assets. For an even simpler definition, mutual funds are like baskets of investments and each basket holds dozens or hundreds of security types, such as stocks and bonds.

2. Mutual funds are accessible and easy to buy

Mutual funds are offered at various brokerage firms, apps that allow investments online, mutual fund companies, banks, insurance companies, and more. Even beginners can easily open an account within minutes and start investing at their own pace comfortably.

3. Mutual funds come in various different categories and types

As someone who wants to grow their portfolio of mutual funds, you have to diversify your investments into various mutual fund categories & types. You can invest in mutual funds that cover the main asset classes such as stocks, bonds, cash, and also various subcategories or specialized areas including sector funds and even precious metals funds.

4. Mutual funds are usually affordable and have low minimums

Most of the mutual funds have minimum initial investment requirements of $3,000 or less. Also in cases where the investor initiates a SIP, the initial investment may be much lower. Some minimums can really be as low as $100. Subsequent investments that follow may be lower than $100.

5.  Mutual funds can be managed at a lower expense than other portfolio types
Costs that are as a percentage of assets in the portfolio may be much lower for actively managed mutual funds when compared to other actively managed portfolios of individual securities. When you add up other costs involved like transaction costs, annual fees, investment advice, etc, mutual funds are often less expensive than the typical portfolio of stocks.

So, all in all, Mutual funds have the greatest benefits when it comes to your long-term financial goals, and using the app CowryWise is the smartest way to go ahead with it. With impressive interest rates, tools, guides, this app is the best when it comes to planning, investing, and saving money online. So, go ahead and download the CowryWise app from your google play store now.


Written by 

Alex Wilson: Alex, a former tech industry executive, writes about the intersection of business and technology, covering everything from AI to digital transformation.