6 Ways to Reinvent Your Banking Investments & Mutual Funds Without Breaking A Sweat
Living like a king is everyone’s dream. Do you know that a lot many people can actually achieve this dream? It is not necessary that a person has to earn tons of money to have carefree and peaceful life. But what is necessary is to save a reasonable portion of his earning and find ways to invest that savings in high yielding profitable investment tools.
Out of many financial instruments available to a Pakistani investor, one of the most favorite one is Mutual Fund. Currently almost all the major banks have one or the other mutual fund available with their fund managers or asset management. In mutual fund investors put their savings in a portfolio which is managed by professional asset management company usually owned by banks. In a nutshell mutual fund is a large pool where investors can invest in diversified stocks, bonds and other securities through professional managers.
Let us review Mutual Funds and its benefits:
- The best part of mutual fund is that the investment is diversified and invested in several funds. The risk is therefore minimized and the investor feel a lot more secured. Since the investment is channelized through professionals the investor’s hassle is also taken care by asset management company
- The money in mutual fund is easily accessible to the investor. The whole or a portion of it can always be taken out as and when required. Similarly, mutual fund units can be bought and sold quite conveniently
- It is not necessary that you need to have whole lot of money to be a part of mutual fund. A person can start with a minimal investment. The asset management company has means to make you part of large funds/shares even with small units of investments
- Since asset management company takes upon itself to be responsible to manage your investment you can continue with your daily life as usual without worries. The professional team at asset management company keep a close watch on market and make necessary adjustments to keep your investment risk free and profitable
- Investments in mutual funds also earn you tax rebates and other benefits by the government. These rebates can be adjusted in paying off tax liability. Further, a long investment in mutual fund is also exempted in Capital Gain Tax
- SECP has strict regulations to protect the interests of mutual fund investors. These funds are closely monitored by SECP which in return give a peace of mind and relaxed life to all mutual fund investors