Monday, October 21, 2019

what are mutual funds and how to invest in them?

What are mutual funds and how to invest in them?

what is a mutual fund?
to many people mutual funds can seem complicated or intimidaing. We are going to try and simplify it for you at its very basic level. Essentially the money pooled in by a large number of people 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 equhties bonds money market instruments and or other securiies. Each investor owns units which represent a portion of the holdings of the fund.

How to invest in Mutual Funds?
you can either invest directly with a mutual fund or hire the services of a mutual fund advisor. If you are investing directly you will invest in the direct plan of a mutual fund scheme.

if you want to invest directly you will have to visit the website of the mutual fund or its authorized branches with relavant documents.

categories
equity mutual funds

debt mutual funds

hybrid mutual funds

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