How Mutual Funds Help You Earn Money

mutual fundsWhether you’re considering generation of daily income or wish to create wealth for the long term a mutual funds investment is one of your best strategies. Simply choose a mutual fund plan that matches your goals, risk profile and investment horizon.

If you’re averse to taking risks invest in debt-based funds. If your risk tolerance is high consider investing in equity-based mutual fund plans.

Mutual funds also work as short term investments. According to mutual funds investment advisers debt-based mutual funds are ideal for financial goals less than five years. These investments also earn better post-tax returns.

Investments in mutual funds involving debt held for more than three years qualifies for long-term capital gains tax of 20% alongside indexation. Indexation helps lower rates on income tax returns and is a major reason why investment experts prefer debt-based mutual funds over bank deposits. Continue reading