To many people, Mutual Funds can seem complicated or intimidating. 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 (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, by calculating a scheme‚Äôs ‚ÄúNet Asset Value or NAV. 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.
There are various platforms which help you invest in mutual funds without facing any issues. Me being an investor in mutual funds and having adequate experience in this field would highly recommend HDFC SECURITIES. As they help you invest hassle free in mutual funds and have a wide range of options to invest. You can click on the link given below to invest in mutual funds in a smooth and convenient manner.
A mutual fund is a professionally-managed investment scheme, usually run by an asset management company that brings together a group of people and invests their money in stocks, bonds and other securities. Mutual funds are pooled investment vehicles actively managed either by professional fund managers or passively tracked by an index or industry.
Mutual fund is a fund of funds. A mutual fund combines the funds of individual investors and invests them in variety of financial securities like equities/debt. A mutual fund holds a variety of investments which can make it easier for investors to diversify than through ownership of individual stocks or bonds. It has emerged as a great option for investors who are willing to take risks for higher rectums and do not have required expertise or time for handling their investing activities.
Mutual funds have turned out to be a very useful investment option for investors who lack the time or knowledge to make traditional and complex investment decisions on their own.
Investing in mutual funds is the easiest means to grow your wealth. All mutual funds are registered with SEBI (Securities Exchange Board of India) and therefore, quite safe.
Who should invest?
Mutual funds make investing easier for you. Each fund is designed to fulfil different goals. This is particularly useful for people who do not have the time or patience to research and choose wisely
When to Invest?
Factors to consider before investing:
Availability of Funds Market conditions Desired duration of investing Expected returns
However, for a normal individual, it could be quite difficult factor in all of these, hence, one should consult a good mutual fund advisory services for better understanding of funds and start investing in mutual funds at the earliest. You can easily access mutual funds nowadays by consulting mutual funds advisor. The basic rule of any investment is to start early. The more you delay, the more you will lose out on potential returns. So, the right time to invest is always NOW.