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Amongst all, mutual funds have emerged as the most preferred investment options today, and there are various reasons for its popularity.

A mutual fund is regarded as the most stable and safe investment destination, formed by an asset management company who pool in the investments from various sources with the sole objective of giving good returns. One of the major reasons why it is popular is because it is managed by a finance professional who manages the entire investment portfolio and makes sure your investment gives consistent returns. The expert systematically invests the pooled amounts in stocks and bonds that are in line with the investment mandate.

In today's time when the global financial conditions have weakened due to the ongoing pandemic situation, mutual funds are an ideal option that gives investors a plethora of investment options. There is a great flexibility in such investments as one can diversify their portfolio as the asset allocation covers multiple instruments. Investors are allocated specific amounts of units according to their investment amounts and hence all the profits and losses are proportional to their investment, which is again an attractive proposition. Furthermore, one doesn't have to keep a tab of their investments, as fund managers look after the entire proceedings and make sure they provide optimal results by getting value of investments that are in sync with the fund's objectives.

Unlike other investment options like stocks, mutual funds do not invest only in a particular share, but their funds are allocated across several instruments which provide investors with the best possible returns. Also, investors are not constantly required to keep a tab on their invested amount as the fund manager looks after this part. He does all the work and picks up the best performing assets that exude extreme potential to grow. Mutual funds are classified into various categories, depending on their asset allocation, and investors are adviced to choose the mutual fund that fits in their criteria and go ahead with their investment. The risk and return of investment depends on the type of mutual fund plan one invests in. ETMONEY provides the best mutual funds investment options where one can invest according to his needs and also calculate the returns of the invested amount through their built-in calculator which forecasts the exact amount of returns on maturity.

Disclaimer: This is a company press release. No LM journalist is involved in creation of this content.

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