- Understanding Mutual Funds
- Advantages of investing in Mutual Funds
- Types of Mutual Funds
Looking for a quick read to understand the basics of mutual funds but don’t know where to start? We have you covered. These are some of the most common questions that people ask before investing in mutual funds.
What is a Mutual Fund Scheme?
In simple terms, a mutual fund is a pool of money brought in by various investors with a common investment objective. Each investor is allocated units in proportion to the investor’s contribution to the pool. The money in a mutual fund is held and managed by a duly regulated trust or AMC (Asset Management Company).
Where do Mutual Funds invest my money?
Mutual funds can invest your money in equities, bonds, money market instruments and/or other securities or a combination of these depending on their type and investment objectives.
What are the advantages of investing my money through mutual funds?
There are multiple advantages of investing your money through mutual funds.
*Subject to restrictions that a few schemes may have.
What are the types of mutual funds?
Mutual funds can be classified into various types depending on the scheme structure and/or the asset class or asset classes they invest in.
Based on the scheme structure, mutual funds may be:
Based on the asset class in which they invest in, mutual funds may be broadly classified as:
Mutual Funds are a good option to consider investing in. If you have not started investing in Mutual Funds, now is the time to start. Remember to seek the advice of a Financial Advisor.
An open ended fund of funds scheme investing in equity oriented schemes, debt oriented schemes and gold ETFs/ schemes.