The Union Budget 2017 that is to be introduced in 1st February 2017 brings a promising change for every honest citizen. With Income Tax slab rates broadened, taxes will be cut down for many in the high earning section of the society. Thus there will be more money at disposal, especially for cashless transactions. This is a time to consider smart investment options. The benefits of mutual funds were already above par as compared to other schemes. With an inflation adjusting foundation, low investment amount, and maximal returns, a mutual fund is the best option for any investor. But the advantages are greater in the coming years with demonetisation hugely affecting the market scenario.
Potential Increase In Purchasing Power
The first reason why Mutual Funds should be considered is a fall in market value of products. With Goods And Service Taxes that will be applicable, the price of every product in the market will fall. The major reduction in prices will be seen in real estate. In such a scenario the investment done in mutual funds will expand the purchasing power of an individual by generating comparatively larger amount than the average market prices.
Convenient For Low Investment Values
In the present market many small-scale investors whose medium of investing is cash, will not be able to invest a large amount of money. Mutual Funds are the perfect solution for them as the initial investment amount is very low and the returns are high. Thus an investment of a small amount of money in a long-term scheme will generate large returns which will keep growing, while the investors can use their remaining money for other activities.
Demonetisation demands flexibility which will be provided by mutual funds. According to the market, scenario money can be retrieved immediately based on your average value of assets. Also in the case of mutual funds, there are several schemes in which investment can be done according to the customer demand.
Transparency In Transactions
The eradication of corruption can only be done through complete transparency in monetary transactions. Mutual Funds are the best way in this case. They give a safe and transparent outlook of how money is being invested and how it is being used in case of withdrawal. Thus there is a proper regulation and discipline whereas monetary exchange is concerned.
So, do not be late. Consider your Mutual Fund investment today and plan out your future step for the year 2017.