February 2018
Mutual funds
It is very general in today’s world that many people are earning good amount of money and they want to save some for the future . Even if someone is not earning a great amount of money even though they want to invest somewhere so that they can save something for there future and MUTUAL FUNDS are one of the many options that people can use to yield some more.
What is Mutual fund?
A Mutual fund is a professionally managed investmet 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.
Note: What is a 'Bond' A bond is a fixed income investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate.
The biggest advantage of investing through a mutual fund is that it gives small investors access to professionally-managed, diversified portfolios of equities, bonds and other securities, which would be quite difficult to create with a small amount of capital.
Types of mutual funds:
Mutual funds
It is very general in today’s world that many people are earning good amount of money and they want to save some for the future . Even if someone is not earning a great amount of money even though they want to invest somewhere so that they can save something for there future and MUTUAL FUNDS are one of the many options that people can use to yield some more.
What is Mutual fund?
A Mutual fund is a professionally managed investmet 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.
Note: What is a 'Bond' A bond is a fixed income investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate.
As an investor we can buy mutual funds which basically represents our share of holding in a particular scheme. These can be purchased or redeemed as needed at net present value . All the mutual funds are registered under SEBI( SECURITY EXCHANGE BOARD OF INDIA)
The biggest advantage of investing through a mutual fund is that it gives small investors access to professionally-managed, diversified portfolios of equities, bonds and other securities, which would be quite difficult to create with a small amount of capital.
Types of mutual funds:
- Money market funds: The money market consists of safe (risk free) short-term debt instruments, mostly government Treasury bills. This is a safe place to park your money. You won't get substantial returns, but you won't have to worry about losing your principal. A typical return is a little more than the amount you would earn in a regular checking or savings account and a little less than the average certificate of deposit.
- Income funds:Income funds are named for their purpose: to provide current income on a steady basis. These funds invest primarily in government and high-quality corporate debt, holding these bonds until maturity in order to provide interest streams. While fund holdings may appreciate in value, the primary objective of these funds is to provide a steady cash flow to investors. As such, the audience for these funds consists of conservative investors and retirees. Because they produce regular income, tax conscious investors may want to avoid these funds.
very much helpfull
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