To meet your financial goals you must have a strategy to fulfill those goals. That's called an investment discipline. And, if you are one with this quality then you must try to take advantage of investing in proper systematic investment plans. There are different types of mutual funds in India. Mutual funds investment enables you to automate your investments. Individual investors can receive exposure to a professionally managed portfolio by investing in mutual funds. So, let's understand what is a mutual fund? and different types of mutual funds to invest in.
so if you were wondering What are Mutual funds? So, Mutual funds in hearing look very simple but it is complicated for most people. We are going to try and simplify it at its very basic level. Simply put, a Mutual Fund is one of the most viable investment options for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.
Essentially, the money pooled in by a large number of people (or investors) is what makes up a Mutual Fund. This fund is managed by a professional fund manager. It is a trust that collects money from a number of investors who share a common investment objective. Then, it invests the money in equities, bonds, money market instruments, and/or other securities.
Each investor owns units, which represent a portion of the holdings of the fund. The income/gains generated from this collective investment is distributed proportionately amongst the investors after deducting certain expenses.
Various types of Mutual Fund schemes exist to cater to different needs of different people. Largely there are three types of mutual funds.
Different types of hybrid funds follow different asset allocation strategies. As per the risk carry by equity and safety by debt the portfolio of hybrid also been created. A higher equity portfolio leads to high growth potential while higher debt investment leads to income generation.
So that was all about understanding what is mutual funds and the types of mutual funds. If you want to invest in mutual funds click here and start paperless and automated investment. To explore more investment opportunities click here. For any further guidance regarding mutual funds investment contact us.
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