4 Reasons why investing ICICI Mutual funds can provide you with high Returns

ICICI Bank does not just stand out with its exceptional services but has also received several accolades for being best in various field of banking products like in 2019 it has received “Best Consumer Digital Banks”.  Besides holding the best review for its customer services for banking products, it has successfully expanded its range of products in the provision of mutual funds. The mutual fund operates distinctively which is managed by professional fund managers, holding expertise in this field. The following are the reasons that an individual should consider investing in ICICI mutual funds.

Reasons to Invest in ICICI Mutual funds

Skimming through the various company profile to acquire the best mutual fund plan is frustrating. So, here are a few reasons one may follow up to buy mutual funds of ICICI MF.

Professional fund managers

A mutual fund is open to market risk and these are always required to be managed by professionals. Though the market force has a lot to do with the performance of a fund, yet the managers play a vital role in directing the funds while it should align with the fund’s goal. At ICICI bank, mutual funds are managed and monitored by professionals. It has a team of fund managers who are constantly researching and evaluating investment options. They have great expertise in business, math and people. Managers fall into the following two categories: active and passive managers.

• Active managers– They undertake a proactive role in analyzing and studying the current trends to invest in funds giving higher returns. They engage in active fund management.
• Passive managers– They trade securities and actively try to mirror its fund. They charge lower fees than active managers.

The ICICI MF has a balanced number of these managers, to cater to an individual’s need.

Low cost

ICICI MF can be purchased by an individual at an affordable rate. It does not charge any entry fee on availing to their online mutual fund plans. Since they are often involved in buying and selling of numerous securities at a much lower rate, it is always considered beneficial to invest through mutual fund as their money will be directed at the right place, help to diversify their portfolio and to achieve the fund’s goal. Availing mutual funds online helps to cut down the cost on purchase of funds.

Transparency and convenience

The provision of flexibility to switch funds and direct the amount to some other fund eases the investment interest of an individual. Frequent update regarding the performance of the fund to the customer shows transparency in the investment approach of the fund manager. Journals, account statement and updates about the performance make it a lot more convenient to invest. The performance is updated every month so it is easy for the investor to check out what the fund manager has been doing.

Tax advantages

Deduction in tax over one’s income is always welcomed with open arms, so investing in mutual fund helps investors to get tax benefit in equity and debt funds. Capital gain accrued from mutual funds investment over a period of one year is considered as long term capital accumulation and treated to be tax-free. There is a tax saving mutual fund scheme called Equity-linked saving schemes. It has a lock-in period of at least three years but one should consider making an investment for five years with a potential higher return in comparison to other investment options.

Reported growth and ranking

A mutual fund is a pool of money directed to be invested in stocks and bond under the guidance of professional managers. The stronger the hold in the market, the more reliable that company will be to acquire its stocks and funds. So, before investing in any company one should consider searching about that company’s market capitalization. It is often referred to as “market cap” which is calculated based upon the company’s outstanding shares or the stocks which are being held by the shareholders. The market cap is the metric which gives an idea about the company’s portfolio and helps to determine the stocks to be invested which may provide a considerate amount of return.

ICICI bank has been reported to cross 3 trillion market capitalization for the first time, in the month of October of 2019. It has become the country’s fourth-largest lender. The share of the company has soared high and its stock has gained 6.6%. Though the performance of mutual funds fluctuates, the team manages to work hard, and gain customers trust to make their stand in the market. One of the most eminent equities research firm has expected ICICI to report an operating profit rate of 28% while the net interest margin which is the difference between the interest income earned and the interest paid by the bank will remain stable quarter-on-quarter.

Apart from the above-mentioned benefits, an individual generally looks for the most trusted and acknowledged company in the market, ICICI MF fulfils the prerequisite feature of being the most trusted one for an individual to easily approach the company to discuss the right fund which will provide good returns after a period of time.

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