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Mutual Fund guide, advice & information - Citi India

Investing in Mutual Funds & its Advantages

There are a multitude of investment options available for every life goal that you’ve set for yourself. Each investment option has its own set of pros and cons, requiring careful planning of your investment portfolio.

So why should you invest in mutual funds?

Mutual funds offer a variety of schemes that suit your needs, be it regular income, capital growth or protection. It allows investors to pool in their money to purchase securities (stocks, bonds, money market instruments) managed by a professional fund manager, backed by a team of experts.

You can build a portfolio that matches your investment objective and rebalance it according to your changing lifestyle needs.

Benefits of investing in a mutual fund:

Professional Management

When you invest in a mutual fund, you benefit from the knowledge and expertise of professional fund managers backed by a dedicated research team. The fund manager continually analyses the prospects and the performance of stocks and selects suitable investments to attain the objectives of the scheme.


Diversification allows you to spread your investment portfolio across various industries and geographic regions. This helps you reduce risk since rarely do all types of investments decline in value at the same time and if one stock or asset goes down, there will always be another that compensates for it.


In case you are in urgent need of money, you can easily redeem a part or whole of your investments in open-ended funds and get back your money based on the net asset value (NAV) at that time. The process is standardised and helps you get your cash in hand quickly.


Mutual Fund performance is reviewed by various rating agencies and publications, making it easy for you to compare one fund with another. As a unit holder, you will receive regular updates on your investments as well as information on the fund's holdings and the fund manager's outlook and strategy.

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Mutual funds offer you a plethora of options based on your investment objectives. You can buy and sell mutual funds on any business day as per your convenience.


All Mutual Funds are registered with Securities Exchange Board of India (SEBI) and follow their stringent regulations. SEBI regularly monitors the operations of mutual funds and ensures that it protects the interests of all investors.


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