What is Mutual Fund?Mutual Fund is a systematically managed investment portfolio that pools the investment of multiple investors and invested in securities such as equity, bonds, debentures, money market and other government securities. Mutual funds are managed by professionals; also called Fund managers did lots of research related to performance of investment. The objective of fund managers is to provide maximum capital gains/ Income to its investors. Mutual FundsMutual Funds provide an opportunity to small investors to enjoy the benefits of professionally managed portfolios of securities such as equity, debt, money market, etc. There are two types of option in mutual funds; growth and dividend option. Growth option does not provide regular income but dividend option provides regular income as dividend declared. Mutual Funds are traded on Net Asset Value at time of purchase and redemptions of investment. The capital gains or losses are divided proportionately with the individual.
Nowadays, there are many individuals who are clueless about how to invest in mutual funds?. We have received queries on social media and other platform from our readers: how to invest in mutual funds? Now the Question arises how and when to invest in mutual funds? Initially we ask our investors goals that how would they save today to achieve the future needs. It is very important for the investor to understand whether the investment available for short term or long term, duration of investment, risk apatite and etc. There are two ways to invest in mutual Funds: Lump sum and Systematic Investment Plan (SIP). Lump sum is one time investment and SIP is daily, monthly, and quarterly Investment. Systematic Investment Plan is considered as one of the safest mode of investment in mutual funds. Here the investor can buy mutual fund online with an expert advice.