Liquidity - Mutual funds are highly liquid. Units in these funds can be purchased and sold easily. However, most mutual funds charge an exit load on unit sales.

Managed by experts - One of the main reasons why mutual funds in India have become the preferred investment choice among a large number of investors is the fact that they are managed by experts.

Meeting your financial targets - In terms of long-term or short-term investment goals, investors can choose from a wide selection of mutual funds to meet their financial goals.

Low cost for bulk purchases - Mutual funds pool money from many investors, allowing bulk investments at a lower cost. This makes it affordable for individuals to access diversified portfolios without needing large sums of money.

Systematic Investment Plans - Most people cannot afford a lump sum investment in mutual funds, so SIPs are an excellent option. You can, however, invest a certain amount each month in mutual funds if you earn a monthly salary, giving you exposure to the entire stock market. You can also take advantage of market highs and lows through SIPs.

Easy investment process - Mutual funds can be easily invested in. Fund managers will take care of everything else after you identify your financial goals and decide how much money you want to invest to achieve them.

Tax-efficiency - Tax benefits of up to Rs. 1.5 lakh can be availed by investing in tax-saving mutual funds such as the Equity-Linked Savings Scheme. With Section 80C of the Income Tax Act, you can save a lot of money on tax, even if you have to pay Long Term Capital Gains tax if you hold your investment for more than a year.

Safety - A common misconception about mutual funds is that they are unsafe compared with bank products. However, your capital is safe if you assess the fund house from which you purchase the mutual fund units, as well as the fund manager.

Automated payments - If you fail to pay your SIP amount on time, you will have to pay two instalments the following month as a result. Fund houses, however, encourage automated payments, so you can set up the SIP amount to be paid directly every month, thereby avoiding missed payments.

Convenience and Accessibility - Invest anytime, anywhere, without having to visit a branch or fill out a long form.

Lower cost - There is no distributor commission associated with direct online mutual funds, reducing expenses and boosting returns as a result.

Transparency - A number of online platforms provide real-time NAVs, fund comparisons, and detailed fact sheets for the various funds.

Ease of transactions - Buy, sell, switch, or start SIPs instantly with a few clicks.

Better controlling and monitoring - Easily manage your investments, track the performance of your portfolio, and download reports.

Safety and security - Investing in a regulated platform with encrypted transactions ensures a safe experience.

Value-added feature - A goal-based approach, smart recommendations, and timely alerts simplify the investing process.