Mutual funds become popular as most of the people want to invest their ideal cash in the mutual fund’s scheme to get a good return. Funds manager plays a very significant role in developing and making it accessible among the public at large. The fund manager keeps purchasing the same shares at higher levels as more money is being brought into mutual funds. In the first budget as finance minister, Mrs. Nirmala Seethraman makes these mutual funds more beneficial for people at large and opened several gateways for the mutual fund industry.
Now to complete KYC you need your Aadhaar card instead of pan card, some companies focus on smaller markets, and small investors and pan card had certain limitations. However, after allowing the Aadhaar card, it opens up the gateway for companies that focus on smaller markets and small investors. Now almost every Indian can invest in mutual funds with an Aadhaar card. Another step taken to develop mutual funds is ETF( exchange-traded fund) that offers a tremendous incentive to small investors to bring more investment into equity markets. Under the scheme, investors get income tax section 80C benefits for the amount invested in the system for a period of at least three years.
Many reasons make mutual funds more popular among investors; whether you are a small or large investor, you will get benefited from mutual funds schemes. Moreover, changes that the finance ministers are making in mutual funds it extended and opened up its benefits for the public.