The Mutual fund is a trust, that is skillfully and professionally
managed by the fund manager. A fund pool the savings of several
investors to invest them in securities. These securities could be any
among Equity and Debt, depending upon the choice and financial
objective of the investors.
Mutual Fund is quite different from other investment, as it doesn't require much investment amount or constant attention. It's the best option to manage the savings for the people who, lacking knowledge or time, instead portfolio manager gets all the rights to take important decisions in your favor.
Mutual Fund is quite different from other investment, as it doesn't require much investment amount or constant attention. It's the best option to manage the savings for the people who, lacking knowledge or time, instead portfolio manager gets all the rights to take important decisions in your favor.
Types of Mutual Funds
1) Money Market Funds - It is an Ideal fund for the investors who are looking for safer investment. These funds invest in short term debt instruments, mostly like government bonds and treasury bills. Whether it is safer, but it has very less potential return in comparison to others fund types.
2) Fixed Income Funds - Such type of funds, firstly target for investing in governmental debts and bonds. They mainly aim for the interest that fund earns to give a steady cash flow to the investors.
3) Equity Funds - Equity funds only invest in stocks. While facing higher risks, they aim for growing much faster than other funds. Value stocks, Mid Cap stocks, Large Cap stocks and Small Cap stocks are the types of Equity funds.
4) Balanced Funds - The Fund invests in both Fixed Income Securities and Equities. They aim for higher returns with having minimum risk. Best for the investors who are cautions aggressive.
5) Indexed Funds - Such fund targets the performance of any specific index and invest there. The performance of mutual fund depends upon the performance of the index. Because of fewer activities and less research, this fund doesn't cost as much as other fund.
6) Specialty Funds - The fund aim for specialized mandates like commodities and real estates by investing in communities, who spread social awareness.
7) Fund of Funds - By making easier diversification and asset allocation like balanced funds, they invest in other funds.
1) Money Market Funds - It is an Ideal fund for the investors who are looking for safer investment. These funds invest in short term debt instruments, mostly like government bonds and treasury bills. Whether it is safer, but it has very less potential return in comparison to others fund types.
2) Fixed Income Funds - Such type of funds, firstly target for investing in governmental debts and bonds. They mainly aim for the interest that fund earns to give a steady cash flow to the investors.
3) Equity Funds - Equity funds only invest in stocks. While facing higher risks, they aim for growing much faster than other funds. Value stocks, Mid Cap stocks, Large Cap stocks and Small Cap stocks are the types of Equity funds.
4) Balanced Funds - The Fund invests in both Fixed Income Securities and Equities. They aim for higher returns with having minimum risk. Best for the investors who are cautions aggressive.
5) Indexed Funds - Such fund targets the performance of any specific index and invest there. The performance of mutual fund depends upon the performance of the index. Because of fewer activities and less research, this fund doesn't cost as much as other fund.
6) Specialty Funds - The fund aim for specialized mandates like commodities and real estates by investing in communities, who spread social awareness.
7) Fund of Funds - By making easier diversification and asset allocation like balanced funds, they invest in other funds.
