Types of Mutual Funds There are three basic types of mutual funds—stock (also called equity), bond, and money market. Stock mutual funds invest primarily in shares of stock issued by Indian or foreign companies. Bond mutual funds invest primarily in bonds. Money market mutual funds invest mainly in short-term securities. Money Market Funds The money [...]
A mutual fund is a company that invests in a diversified portfolio of securities. People who buy shares of a mutual fund are its owners or shareholders. Their investments provide the money for a mutual fund to buy securities such as stocks and bonds. A mutual fund can make money from its securities in two [...]
Do not speculate: Always evaluate risk-taking capacity. Do not chase returns: Because what goes up must come down. Do not put all eggs in one basket: Diversification reduces the risk. Do not stop working on Mutual Funds: Continuous evaluation of funds is a must. Do not time the market: Every time is good for investments. [...]
Once you are comfortable with the basics, the next step is to understand your investment choices, and draw up your investment plan relevant to your requirements. Choosing your investment mix depends on factors such as your risk appetite, time horizon of your investment, your investment objectives, age, etc. What should be kept in mind before [...]
Mutual Fund Type Objective Risk Investment Portfolio Who should invest Investment horizon Money Market Liquidity + Moderate Income + Reservation of Capital Negligible Treasury Bills, Certificate of Deposits, Commercial Papers, Call Money Those who park their funds in current accounts or short-term bank deposits 2 days – 3 weeks Short-term Funds (Floating – short-term) Liquidity [...]
There are a wide variety of Mutual Fund schemes that cater to your needs, whatever your age, financial position, risk tolerance and return expectation. Whether as the foundation of your investment program or as a supplement, Mutual Fund schemes can help you meet your financial goals. The different types of Mutual Funds are as follows: [...]
Investing in Mutual Funds offers several benefits: Professional expertise: Fund managers are professionals who track the market on an on-going basis. With their mix of professional qualification and market knowledge, they are better placed than the average investor to understand the markets Diversification: Since a Mutual Fund scheme invests in number of stocks and/or debentures, [...]
A Mutual Fund is a trust that pools together the savings of a number of investors who share a common financial goal. The fund manager invests this pool of money in securities — ranging from shares and debentures to money market instruments or in a mixture of equity and debt, depending upon the objectives of [...]
