Mutual Fund

What is a Mutual Fund?

A mutual fund by definition is a pool of money collected from investors who want to save money and get good returns.

Why should you invest in Mutual Fund?

  • Professional Management: Mutual funds are backed by highly professional research teams, dedicated to provide investors with the best services to handle financial decisions based on the prospects & performances available and aim to give the best returns possible for your investments.
  • Diversification: Going by the old saying “Don’t put all your eggs in one basket”, mutual fund gives the investor an opportunity to dodge risks by distributing their investments over diverse range of assets.
  • Transparency & Safety: Fund houses give regular information about the actual current value of the investment, with their performance strategy. This gives an investor a clear picture on how their investments are doing. Also, as they are governed by SEBI, although, any investment has a form of risk involvement, skillful management and careful selection.
  • Convenience: Mutual funds prove to be a great investment option for investors who don’t have the time or the expertise to make investments in the capital market.

Various types of Mutual Funds that are Based on the Investment Objective:-

Equity Funds Equity/Growth funds invest a major part of its corpus in stocks and the investment objective of these funds is long-term capital growth.
Fixed/ Debt Income Fund Fixed Income Securities like Government and Corporate Bonds. These funds provide low risk and stable income to investors with preservation of capital
Balanced Funds A mix of equities and fixed income securities
Gold / Gold ETF Funds Gold ETFs are exchange traded funds where the underlying asset is gold. Therefore, value of gold ETF depends upon the price of gold. Gold funds which invest in physical gold offer investors the convenience of buying pure gold at low cost.