Mutual Fund isVolatile, in short term An Investment Vehicle Secure
How will Mutual Funds help me?
A mutual fund is an investment service made up of a pool of money collected from many investors for the purpose of investing in securities and it can be in form of stocks, bonds, money market instruments, and other assets. Mutual funds are operated by professional money managers or we can call them as fund managers, who allocate the fund's investments and attempt to produce capital gains and/or income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus. It has become popular over the last 20 years due to the wealth management nature of the service.
Mutual Funds comes with different categories and varieties for a strong portfolio. These are:
- Large-cap Stock Funds
- Mid-cap Stock Funds
- Small-cap Stock Funds
- Government Bond Funds
- Corporate Bond Funds
- Long-Term Mutual Funds
- Short-term and Ultra Short-term Mutual funds
Mutual funds are easily affordable by the general or small investors as one can start with a minimum balance of INR 500 or 1000 to invest in Mutual Funds. One can start investing in Mutual Funds by purchasing a SIP or Systematic Investment Plan.
Mutual Funds are easy to buy and access. one can easily open an account and start investing in Mutual funds and can make a strong Portfolio.
Risk is an inherent part of any investment. Mutual funds help you to diversify risk as it invests in different securities/ instruments and this can reduce the risk, increases the return on investment.
It is always advisable to make a habit of saving and with the help of Mutual funds you develop a habit to invest and save more while working at an early age. Mutual funds are disciplined investment. The longer delay the more financial burden you will face.
Mutual funds is a perfect tool or investment which can help you in fulfilling your dreams and long-term goals. The amount of return mutual funds offer which surely help you in achieving financial goals.
Mutual Funds are more volatile than other investments. Unlike other investments where investment will grow at a fixed rate of interest, mutual funds offer you more than this. Mutual funds invest in stocks of listed companies which grows more than the fixed-rate and making mutual funds more volatile.
Mutual Funds are closely regulated by SEBI which makes them much safer.
Mutual funds yield a higher rate of interest than other investments.
Investment in mutual funds can also start with a smaller amount of 1000 INR per month.
Risk diversification can also be done in Mutual Funds.
Mutual funds are subject to market risk. Please read the offer document before investing.