A mutual fund is a pool of money collected from investors and is invested according to stated investment objectives
Mutual Funds represent the hands-off approach to entering the equity market.
Increased complexity of Financial Markets
Mutual Funds are among the hottest favorites with all types of investors. Investing in mutual funds ranks among one of the preferred ways of creating wealth over the long term. In fact, mutual funds represent the hands-off approach to entering the equity market. There are a wide variety of mutual funds that are viable investment avenues to meet a wide variety of financial goals. This section explains the various aspects of Mutual Funds.
A mutual fund is a pool of money collected from investors and is invested according to stated investment objectives.
Advantages of Mutual Funds
Disadvantages of Mutual Funds
Predominantly invest in the debt markets
Debts Fund Include
As the debt fund invest in debt securities and government bonds. The risk is low and so is the return.
Equity Funds pre-dominantly invest in equity markets
Equity Funds Include
The risk associated with the equity funds are high as they Invest in equity market, they also have a high growth potential while also having a high risk
Balanced Funds, Investment is in more than one asset class
Balanced Funds Include
As the exposure of balanced is both on equity and debt the returns will be based on the level of exposure to the particular market.
Open Ended Funds
Closed Enede Funds
Net Asset Value (NAV) denotes the performance of a particular scheme of a mutual fund
If the market value of securities of a mutual fund scheme is Rs 200 lakhs and the mutual fund has issued 10 lakhs units of Rs. 10 each to the investors, then the NAV per unit of the fund is Rs.20.
What is Systemtatic Investment Plan