What are Mutual Funds?
A mutual fund is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets. Mutual funds are operated by professional money managers, who allocate the fund's assets and attempt to produce capital gains or income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus.
Types of Mutual Funds
- Equity Funds
- Fixed-Income Funds
- Balanced Funds
- Money Market Funds
- Income Funds
- International/Global Funds
- Thematic Funds
- Exchange Traded Funds (ETF’s)
Modes of Investing in Mutual Funds
- One Time Investment or Lumpsum Investment
- Systematic Investment Plan or SIP
- Systematic Transfer Plan or STP
- Systematic Withdrawal Plan or SWP
Advantages of Mutual Funds
- Diversification
- Easy Access
- Economies of Scale
- Professional Management
- Variety & Freedom of Choice
- Transparency
Taxation
Past performance of investments is not necessarily indicative of future performance. The value of investments may fall as well as rise and the income from the investments may fluctuate and is not guaranteed. Clients may not recover the amount invested. The investment products offered on this website may not be suitable for all types of investors.