The main reasons for investing in a fund are as follows:
1. For extra income
This is one of the main reasons for investing in the fund. Investing helps to increase money, which helps to supplement income.
2. To minimize tax debts
Investments in life insurance, pension funds, citizen funds, etc. offer tax reductions. This minimizes tax debts and investors can enjoy tax benefits.
3. Protection against inflation
Investing is necessary to protect yourself from inflation as unused funds or money decrease in value over time. Investments help to generate the nominal return and to maintain purchasing power.
4. Business creation or expansion
Many people invest money to start a new business or expand their existing business for higher income.
5. Excitement and hobbies
Some people also invest their money in excitement and hobbies by following other people.