As an investment avenue, Mutual Funds offer inflation-beating and tax-efficient returns. They offer complete control over your money and the freedom to invest as per your needs. Mutual Funds offer a window to invest across different asset classes such as equity, debt, gold.
We have made it easy for you as an Axis Bank savings account customer, to invest in top performing mutual funds across different category of funds such as tax saving funds, funds for long term wealth creation, balanced funds for new-to-MFs customers who are not willing to take risk by investing in pure equity funds, liquid & debt funds for short-term requirements. You can invest through your internet banking account or Axis Mobile app, in just a few clicks.
Advantages Of Mutual Funds
Let’s you diversify your investments by investing in different asset classes
It is important to invest in a mix of assets, such as equity, debt, gold, etc. Not all asset classes perform favourably at all the times, hence it is important to diversify the investments across multiple asset classes. Also, certain asset classes require a longer investment period to earn meaningful returns. For instance, in the case of equity, the returns could fluctuate in the short to medium term, but it has potential to deliver inflation-adjusted returns over a long period of time.
Freedom to select amount/frequency
Mutual funds allow you to invest how much you want to and when you want to. While some funds have a minimum investment amount, there is no upper limit. You can invest any amount at any point of time. Some funds allow investment as low as Rs 500.
You could invest lump sum or in regular monthly instalments through Systematic Investment Plans (SIPs). You can link your bank account to the mutual fund and ensure that the investment is deducted automatically.
If you are a young investor start by investing Rs 500-1000 per month and increase the amount as your income increases. Even if you invest via SIP, you can invest a lump sum as and when you have additional money, say an annual bonus or incentive.
Invest as per your goals
The flexibility offered by mutual funds makes it easy to invest as per your goals. For a goal that is more than five years away invest in a pure equity fund. If your goal is less than five years away choose a hybrid or a debt fund. For instance, for your retirement planning, or if you want to save for a second home, invest in a large-cap or multi-cap equity fund. If you are planning a foreign trip after two years, invest in a debt or hybrid fund. Linking each financial goal to a mutual fund will make it easier for you to allocate and distribute your savings and also keep track of your money.
Easy to track
While mutual fund houses provide monthly updates about the fund’s performance, making it easy to keep track of your investments, you can also access all the details about your investments on Axis Mobile App or Axis Internet Banking. You can monitor your investments on-the-go on these platforms at a click of a button.
Expert Fund Manager who manages your money
The money invested in mutual funds is managed by an expert, also called as a fund manager. Fund Managers are subject matter experts who have in-depth understanding of the markets, companies and sectors. They use their experience and the inputs from analysts to take critical decisions with regards to investing money in stocks and other asset classes.
Important parameters to consider while choosing a fund
Two critical factors that you need to keep in mind before choosing to invest in mutual funds - your financial goal(s), time required to fulfil the goals and your risk taking ability. Once you are clear about these aspects, please do evaluate mutual fund schemes on parameters such as fund manager, fund house, investment objectives, investment portfolio, performance (of the scheme as well as its performance in the context of the market and peer group), cost which is expressed in terms of expense ratio. Do remember that while performance of a fund is important, past performance does not indicate how the fund will perform in future.
