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What are the benefits of mutual funds compared to other instruments like RBI bonds?


I have to do research on this pl help me. what are the benefits of mutual funds as compared to PPF, RBI bonds, PO savings, kisan vika and Company deposits

See, as the name suggest , Mutual Funds are funds arranged by in a pool by ordinary investors who may not have knowledge of financial market .But every one wants to increase wealth. So, a mutual fund company hires very knowledgeable investment manager and collect money from masses. The investment manager , invests these money in varied form of investments like-Equity, Govt bonds , other securities. This he does for maximising the gain.
The RBI Bonds , PPF are fixed types of investments where there is a fixed % of return is assured. So, generally speaking the chances of higher return is with Mutual Fund.

The second difference between Mutual Fund and RBI/PPF/etc is that the investment Mutual fund is riskier than investment in RBI/PPF etc because in case of PPF and RBI govt gives guaranteed return.
The third difference is that generally the investment in RBI/PPF and other bonds are for fixed tenure whereas in Mutual fund you can get out as soon as you want.
Fourth, RBI /PPF returns are totally tax free whereas the only dividend given by Mutual Fund is free and not the capital gain.

There are many other difference. You better search Indian sites on this topic.Id answer- if I knew what you were talking about
mutual funds are investments offered that take a collection of different stocks, bonds, cash and other holdings to offer a way for an investor to buy into that form of investment with a minimum cash outlay. the other offerings that i see you talking about seem to be bonds, not stocks and are debt instruments that are offered to raise cash.
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