Mutual Fund a penalty free investment

Mutual Fund can reduce the risk of investing other than stocks, varies depending on the type of fund.

Array of Flexibility and Diversity
Select fund from Debt fund, blue-chip funds, Thematic funds, that aim to provide income with modest growth or those that take big risks in the search for returns. You can even buy balanced funds (combination of equity and debt )

Affordability single contribution is as less as Rs 5,000/- and regular is as low as Rs 500 for some schemes.

Any Time Money
Once you buy fund you can make sell any amount of your units on any business day and receive the current market value on their investments within a short time period (normally three- to five-days). More over Reliance Mutual fund also offers ATM card for insatant liquidity.

Transparency
Mutual funds also provide you with detailed reports and statements that make record-keeping simple. You can easily monitor the performance of your mutual funds simply by reviewing the business pages of most newspapers as thier respective site or AMFI India site

Tax benefits Yaa!!! You can be benefited

• 100% Income Tax exemption on all Mutual Fund dividends
  
• Equity Funds - Short term capital gains is taxed at 15%. Long term capital gains are not applicable.
  
• Debt Funds - Short term capital gains is taxed as per the slab rates applicable to you. Long term capital gains tax to be lower of - 10% on the capital gains without indexation benefit and 20% on the capital gains after indexation benefit.

Different types of Mutual fund schemes are available depending on age, asset allocation and other various issues, read it in next issue

Till then

!! Happy Investment !!