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Personal Banking

Last Updated on: 08/05/2023


  • Mutual fund is a financial instrument that pools money from different investors. The pooled money is then invested in securities like stocks of listed companies, government bonds, corporate bonds, and money market instruments
  • As an investor, you don't directly own the company's stocks that mutual funds purchases. However, you share the profit or loss equally with the other investors of the pool. This is how the word "mutual" is associated with a mutual fund.
  • You get the advantage of the expertise of the fund manager and regulatory safety of the Securities Exchange and Board of India (SEBI). The professional fund manager ensures a maximum return to investors.
  • Mutual fund investment is simple. You invest in a fund consisting of several assets. Thus, you need not risk putting all eggs in one basket.

Advantages of Mutual Fund

There are over 8000 mutual funds in different categories to meet the objectives of all types of investors. The right mix of growth, income, and safety makes mutual funds suitable for everyone.

Below are the advantages of investing in mutual funds:

Expert Money Management

Your pooled money is managed by a team of experts. So, you have the advantage of expert guidance in creating wealth. The fund manager does meticulous research in deciding equities, sectors, allocation, and of course the buy and sell.

Low Cost

If you calculate the benefits of expertise, diversity, and other options of return, then mutual funds are definitely a very cost-effective instrument of investment.

SIP Option

Sip Option gives you the flexibility to invest at an agreed interval which could be weekly, monthly, quarterly. You can start investing in mutual funds with an amount as low as Rs. 500.

Switch Funds

If you are not happy with the performance of a particular mutual fund scheme, then some mutual funds do offer you an option to switch funds. However, you need to be very cautious while opting to switch.


Mutual funds offer you the benefit of diversification in such asset class which otherwise isn't possible for an individual investor. You reap the dividend of maximum exposure with minimum risk.

Ease of Investing and Redemption

Now, it is pretty easy to buy, sell, and redeem fund units at Net Asset Value (NAV). Just place the redemption request and you will get your money in the desired bank account within stipulated time frame.

  • A mutual fund is a powerful investment option that has the potential to generate long-term wealth for investors. Mutual funds have schemes for all types of life goals, right from creating a pool of wealth to retirement. You have schemes for risk-averse and conservative investors.
  • The option has benefits of diversification, low cost, flexibility to invest in smaller amounts and professional fund management.
  • Combined with online investment platform you have a great tool that makes mutual funds investing a quick and hassle-free experience.
  • Explore your investment journey through IOB network across the country.
  • In order to ensure our customer's experience a seamless investment journey, we at IOB have associated with MF Utility to extend a powerful investment portal which is crafted with care to ensure the mutual transaction is completed in just 4 mins.