What are Mutual Funds? Today most people do,t know about mutual funds, and for this reason, people don,t invest in Mutual Fund.
A mutual fund is a basket of stocks managed by a Mutual Fund manager. Any Mutual fund has 20 to 30 stocks in its portfolio, which is completely managed by the fund manager.
There are majorly three types of categories of Mutual Fund; One is Large Cap Mutual Fund, Another is Midcap Mutual Fund, and the Third one is Small Cap Mutual Fund.
That company turnover is more than 20 thousand Crore these comes in Large Cap Mutual Fund Category, which company whose turnover is 5 thousand to 20 thousand Crore this company comes in Midcap Mutual Fund Category. Those turnover below 5 thousand Croe this comes in Small-Cap Category Mutual Fund.
This category of Mutual Fund has three types of subcategories...
Equity Mutual Fund
Debt Mutual Fund
Balanced Mutual Fund
If any person wants to invest in a Mutual fund, he has to select which category of Mutual Fund means where he wants to invest? Large Cap Mutual Fund, Midcap Mutual Fund, or Small Cap Mutual Fund?
Asset Management Company - An Asset Management Company is also known as a fund house; they will work as the investment manager for the trust. It will be responsible for the day-to-day routine works. This means that it is be taking care of money put in by investors.
The word Mutal implies a group of people coming together, and funds mean the pooling of money; therefore, the term mutual funds suggest a group of people putting their money to buy stocks in a single basket.
Ads show mutual fund is subject to market risk this is correct, but if any person invests in mutual funds and Sensex or nifty will down then their funds will also be down. But anyone who is investing for a long time means five to ten years investing period, and he is selecting good scheme of the mutual fund then loss chances will happen less. So before investing in Mutual fund analysis of schemes of Mutual funds and keep in mind how much time period for investment then Invest in Mutual fund.
The history of Mutual funds says that you can get a 10 to 20% return if you invest in a good Mutual Fund. This is a much better return from RD or FD.
Also, one more benefit of investing in a Mutual Fund is there is no login a period of mutual funds except tax saving plans means if you are investing in the mutual fund, then you can withdraw your money at any time there is no foundation, and also you can start investing in mutual fund by SIP ( Systematic Investment Plan) with a low amount of Rs500/- monthly this amount will deduct from your bank account every month and also you can purchase one-time direct purchase with a minimum of Rs5000/-.To invest in a Mutual fund, you can open a Demat Account or purchase directly through the website.
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