which investments can assure 12-15% return per annum in next 5 years period. Are mutual funds good investment or the PMS servcies

Ans: Mutual funds are indeed a viable option for achieving returns of 12-15% per annum over the next 5 years. Here's why:
Mutual Funds:
• Diversification: Mutual funds pool money from multiple investors to invest in a diversified portfolio of securities, reducing risk.
• Professional Management: Experienced fund managers make investment decisions based on thorough research and analysis, aiming to maximize returns.
• Liquidity: Mutual fund units can be easily bought or sold, providing liquidity to investors when needed.
• Transparency: Mutual funds provide regular updates on portfolio holdings and performance, ensuring transparency for investors.
• Regulatory Oversight: Mutual funds are regulated by SEBI (Securities and Exchange Board of India), providing investor protection and oversight.
Disadvantages of Portfolio Management Services (PMS):
• High Minimum Investment: PMS typically require a high minimum investment, often in lakhs or crores, making them inaccessible to many investors.
• High Fees: PMS services charge higher fees compared to mutual funds, including management fees, performance fees, and other expenses, which can significantly erode returns.
• Less Diversification: PMS portfolios may be concentrated in a few stocks or sectors, increasing risk and volatility compared to diversified mutual funds.
• Limited Transparency: PMS may provide limited transparency on portfolio holdings and transactions, making it difficult for investors to assess risk and performance.
• Tax Inefficiency: PMS may have tax implications such as higher turnover leading to increased tax liabilities, reducing net returns for investors.
Why Choose Mutual Funds Over PMS:
• Accessibility: Mutual funds have lower minimum investment requirements, allowing retail investors to participate in wealth creation.
• Cost-Effectiveness: Mutual funds offer cost-effective investment options with lower fees compared to PMS, ensuring better returns for investors.
• Diversification: Mutual funds provide diversification across a wide range of securities, reducing risk and enhancing long-term returns.
• Regulatory Protection: Mutual funds are subject to regulatory oversight by SEBI, providing investor protection and ensuring compliance with regulations.
In conclusion, while mutual funds offer a cost-effective and diversified investment option with the potential to achieve returns of 12-15% per annum over the next 5 years, PMS services come with higher costs, limited accessibility, and increased risk. Therefore, investors may be better off considering mutual funds as their preferred investment vehicle.