Mutual Funds
Mutual fund is a way through which we can invest in equity market, debentures, bonds.
Mutual funds offer a range of products to investors. These products are used to fulfill various investment objectives
1. Risk and return expectations.
2. Investment horizon.
3. Investment Strategy.
Mutuals funds are managed by the fund managers. Fund managers are those person who are highly skilled, educated and knows how to manage the money of a common people. Generally, we use the term that mutual funds gives a higher amount of return in long term. Long term means the time horizon of more than 5 years but now-a-days there are mutual funds specially for short term purposes. Investment for less than 1 year of period are also available in mutual funds.
Mutuals funds are managed by the fund managers. Fund managers are those person who are highly skilled, educated and knows how to manage the money of a common people. Generally, we use the term that mutual funds gives a higher amount of return in long term. Long term means the time horizon of more than 5 years but now-a-days there are mutual funds specially for short term purposes. Investment for less than 1 year of period are also available in mutual funds.
Types of mutual fund
There are basically 7 types of mutual fund
1. Money market funds.
2. Fixed Maturity Fund.
3. Index Fund.
4. Fixed Funds.
5. Speciality Funds.
6. Equity Funds.
7. Funds of funds.
How to invest in mutual funds?
Generally, there are two ways prefer by the common investor. SIP and Lumpsum investment. Generally common people do SIP
because it deals with the psychology of an investor and it helps the investor to invest for long term. Now- a- days large institutions, private banks, public sector banks also invest in mutual fund but they use lumpsum form of investment and generally they invest for short term to get higher returns from people's money. I personally suggest that never invest directly in the equity market if you don't have the knowledge of it. It's better to invest in the stock market through mutual funds. You can choose mutual funds which invest more than eighty percent of their money in equity market if you want large exposure of your money in equity market.
# Mutual Fund Sahi Hai.
because it deals with the psychology of an investor and it helps the investor to invest for long term. Now- a- days large institutions, private banks, public sector banks also invest in mutual fund but they use lumpsum form of investment and generally they invest for short term to get higher returns from people's money. I personally suggest that never invest directly in the equity market if you don't have the knowledge of it. It's better to invest in the stock market through mutual funds. You can choose mutual funds which invest more than eighty percent of their money in equity market if you want large exposure of your money in equity market.
# Mutual Fund Sahi Hai.
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