MUTUAL FUNDS

A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities.It is a basket of various investments such as stocks,bonds and cash.These funds are operated by professional managers who allocate the funds in different asset class to produce income for the investors.

Advantages of Mutual fund

1. Investor'money are managed by expert fund managers to generate reasonable return.
2. It gives higher return on investment by investing funds in equities.
3. Investor can keep money safe with tax efficient return by investing fund in debt and money market instruments.
4. There are different categories in mutual funds so investor can diversify his portfolio according to future needs.
5. Investor can avail tax benefit up to Rs.150000 by investing in ELSS fund.This benefit is eligible under section 80C of the income tax act.

Types of mutual fund

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FIXED DEPOSIT

Company fixed deposit are fixed deposit that are offered by company and financial institutions.These deposit provide regular income with higher rate of interest.

Advantages of Fixed Deposit

1. Low risk investment tool.
2. Investor can earn higher interest rate than bank FD.
3. Senior citizen are eligible for getting additional interest rate.
4. Investor can earn regular income (Monthly, Quarterly, Half yearly and Yearly) as per his financial income needs.
5. These FD can be liquidated easily because after 3 month investor can avail facility of premature withdrawals.

Types of fixed deposit

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INSURANCE

Insurance means protection from financial losses.It is a contract in the form of policy in which an individual or entity get financial protection or reimbursement against losses from an insurer company.

Advantages of Insurance

1. Financial protection for family on low rate of premium.
2. Investor can achieve his financial goal by getting higher return on ULIP plan.It create tax free corpus for future goal.
3. There are various traditional plan which provide guaranteed regular income for long term to fulfill client retirement solution.Investor can also use this as secondary income.
4. It offers dual tax benefits,the premium paid offer tax deduction under 80C and maturity corpus become totally tax free under section 10(10D).

Types of insurance