Investing in mutual funds is vital if you want to build yourself financially in the long run. Mutual funds are an investment tool that combines a huge amount of money from different investors in a single pot. These funds are invested in several financial securities such as bonds, stocks, shares, gold, and more. Mutual funds are run by mutual funds professionals who allocate these funds to generate revenue or capital gains for investors. Individual investors have to manage these portfolios of bonds, stocks, and other securities through mutual funds. Therefore, stakeholders participate evenly in the fund’s profits or losses. With this understanding of mutual funds, let’s take a look at what you gain when you invest in mutual funds. 

1. Online Process: Thanks to online banking, investing in mutual funds is now convenient. With a paperless process, you can manage your investments from the comfort of your home, even reviewing your investment portfolio on your phone or laptop. 

2. Small investments: With mutual funds, you can start your investment journey with as low as Rs.500 through SIP and invest in SIP with such low amounts regularly. You can also increase your SIP investments when your salary increases. 

3. Tax benefits: Under section 80C of the Income Tax Act, you can avail yourself of tax benefits. You receive tax deductions on investments in certain financial instruments, such as mutual funds. According to the current law, you can claim up to 1.5 lakhs in tax benefits annually in the equity-linked saving scheme (ELSS), which offers the shortest lock-in period. 

4. Portfolio diversification: Diversifying your portfolio by viewing the option chain aids in minimizing your risk and losses. When you diversify your portfolio, if one of your investments goes into a loss, the other one will balance it out. Mutual funds provide adequate diversification to your investments.

5. Expert guidance: When you invest in stocks through mutual funds, an expert manages your portfolio. The research team helps track the market on a real-time basis. Based on that research, fund managers can make changes to your mutual fund portfolio so that you gain maximum returns on your investments. This is a great method for investors who lack the time and skills to track markets and suitable investments.

6. Large returns: Compared to other low-risk investments, mutual funds produce a significantly larger share of returns. These are not monotonous and vary based on an investor’s risk tolerance. 

In summary, mutual funds are a powerful tool for your long-term financial growth. They offer you as the investors the advantages of professional management, portfolio diversification, and the potential for huge returns, all while being accessible with small initial investments. The simplicity of the investment process, especially with the entire process being online, makes mutual funds an attractive choice for both new and experienced investors who have dealt with both Sensex and Nifty stock market. By including mutual funds in your financial strategy, you can effectively build  your wealth over time.