The hangover from New Year parties is long over and the zeal for making and following New Year resolutions may be ebbing… but there’s one resolution you can’t afford to let go: to invest smartly.

When considering investment opportunities, a common investor often feels the problem of plenty i.e. the challenge is to identify the best investment from a plethora of options on offer. So why should one consider Mutual Funds (MF) over other instruments?

Mutual Funds have always been an avenue for you to consider but after demonetisation, investing in MFs is making even more sense. If you are planning to invest for a longer period, mutual funds may just help you achieve your goals.

The national GDP may go down for a few months and it may look like the long-term effects of demonetisation are not good for the economy. But in reality, as the RBI keeps on injecting liquid funds in the market, the GDP may grow again.

Other investment vehicles are giving low returns.

Interest rates for traditional instruments are low hence an investor may consider other avenues for investing. Growth in the real estate market has also slowed. Investing in direct equity needs a lot of time, attention, knowledge and expertise, which many common investors may not have and thus is not the option for everybody. And of course, we’ve all seen first-hand what happens when you keep cash lying at home, right? In such a scenario, mutual funds may be what you need.

There are a lot of options in mutual funds

Think you can’t afford to invest in a mutual fund? Think again.

You can also choose to invest in Systematic Investment Plans under mutual funds. In these SIPs, you can start with a much smaller amount, and this is why investors of all ages and income levels should consider this plan. The investment in these plans is monthly and you can start with as low as Rs.500 per month. SIPs provide long-term benefits and average out your investments value, while increasing the units at asteady rate.

They seek to offer potential returns

In the long run, mutual funds seek to offer returns that makes you feel like you’ve got your money’s worth. One of the reasons for this is that they invest in varied types of companies and sectors, thus helping you to balance your financial portfolio by spreading out risk. This also increases their potential for maintaining steady returns throughout time.

They offer liquidity

Mutual funds also offer liquidity if one opts for open-ended liquid schemes based on Net Asset Value. If you have opted for a close-ended fund, you can trade in the stock exchange under some schemes.

They provide transparency

If the picture above applies to you, Mutual Funds may just be what your life has been missing! Why? Because mutual funds are managed by Fund Managers who are experts in their field. These managers are able to understand and navigate the stock market and based on your risk appetite you may invest in such schemes managed by the Fund Manager.

Additionally, since every MF is regulated by SEBI, the investor is assured that the investments are managed in a disciplined and rational way since the aim of SEBI is to protect the interest of the investors. Also, you are within your rights to ask fund managers to provide you with regular information about current investments as well as future strategy and outlook to the investors. This way, you may monitor where your money is going at all times. You may also consult your financial advisor if in doubt or read the scheme information documents to know about the scheme in detail.

A popular saying goes, ‘the best time to plant a tree was 20 years ago, the next best time is today’, the same is true for mutual funds, if you haven’t already invested in them, do not let year 2017 also pass you by.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.