EVERYTHING YOU NEED TO KNOW ABOUT MUTUAL FUNDS INVESTING

Mutual fund

A Mutual fund collects money from different investors and invests money on their behalf. They also charge small fee for managing the money. Mutual funds are an ideal investments vehicle for regular investors who do not know much about investing. There are different scheme available from which investors can choose based on their financial goals.

How to invest in mutual funds?

Any one who wants to invest in mutual funds can invest directly or hire the services of a mutual fund advisor. If you are investing directly you will invest in the direct plan of a mutual fund scheme. If  you are investing through an advisor or intermediary you will invest in the regular plan of the scheme.

 

How does a mutual fund operates:

A mutual fund company collects money from several investors and invest it in various options like stocks, bonds,etc. This fund is managed by professionals who understand the markets well and try to accomplish growth by making strategic investments. Investors get units of the mutual fund according to the amount they have invested. The assest mangment company is responsible for managing the investments for the various schemes operated by the mutualfund.

Different types of mutual fund schemes :

Open ended Fund:

An open ended fund is a fund that is available for subscription and can be redeemed on a continuous basis. It is available for subscription through out the year and investors can buy and sell units at NAV realted prices.These funds don’t have a fixed maturity date.

Close ended Fund:

A close ended fund is a fund that has a defined maturity period 3 to 6 years. These funds are open for subscription for a specified period at the time of initial launch.These funds are also listed on recognized stock exchange Read more...