What is a Mutual Fund?
What is a Mutual Fund?
It is a professionally managed investment fund that pools money from investors & invests in securities,
What are the main types of Mutual Funds?
Equity Funds: These are the funds that predominantly invest in stocks of different companies. Since they invest in the equity market, they tend to carry high risk of investment but a high potential for capital appreciation as well.
Debt Funds: These funds invest a significant portion of money in fixed income securities like government securities, debentures, corporate bonds & other money market instruments. Their return generating potential is not as high as Equity Funds & the goal is to provide a steady source of income to the investors.
Hybrid Funds: Also referred to as balanced funds, these funds invest into both stocks & debt securities. The ratio of investment depends on the fund manager & can be either fixed or variable in nature.
What is the best way to invest in Mutual Funds?
SIP (Systematic Investment Plan)
What exactly is SIP?
SIP is an investment route offered by Mutual Funds wherein one can invest a fixed amount in a disciplined manner. The investment amount can be as little as INR 500/Month & investment can be done at regular intervals- say once a month or once a quarter, instead of making a lump-sum investment.
