Mutual Funds: What is Mutual Fund & Types of Mutual Funds In India?

नवंबर 21, 2018
What are Mutual Funds

What are Mutual Funds?

Mutual Funds are very popular or the best investment idea for those who don't want to learn about Investing in the Stock market.

the option is to invest your money is in "Mutual Funds".

Mutual funds are managed by the professionals' fund manager.

mutual funds are managed collectively to gain the highest possible returns.

Why Mutual funds?

if you want financial freedom

if you want to earn higher returns than bank deposits

if you want to be wealthy

if you want to earn huge money

if you want to be prosperous

if you don't want to learn about the stock market

Professional fund manager manages funds.

Flexibility to invest and withdraw.

Types of mutual funds

mutual funds are categorized into three types based on the risk-taking capability of investors.

  • Debt funds
  • Equity funds
  • Balanced funds
for possible higher returns in mutual funds, you should be a long-term investor.

Debt Funds:

Debt fund is less risky than equity funds. the fund manager invests the money in bonds or government securities.

it is suitable for people who don't want to take the risk.

Equity Funds:

Fund manager invest collected funds of investors into the companies share so when the share price goes up investors make a profit 

or if the price goes down investor losses money.

Balanced Funds:

A balanced fund is the combination of the Debt fund and Equity fund.

to maintain the risk and profitability a fund manager invests fund on both Equity and Debt fund.

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