The first & foremost thing to remember in Mutual Funds is “MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS. READ ALL SCHEME RELATED DOCUMENTS CAREFULLY”. Once you have understood this you will never fail to achieve your goal.
Mutual Funds are among the hottest favorites with all types of investors. Investing in mutual funds ranks among one of the preferred ways of creating wealth over the long term. In fact, mutual funds represent the hands-off approach to entering the equity market. There are a wide variety of mutual funds that are viable investment avenues to meet a wide variety of financial goals.
One can enter the mutual funds in a single go as well as in a multiple transactions through Systematic Investment Plan popularly known as S.I.P.
- A mutual fund is the trust that pools the savings of a number of investors who share a common financial goal.
Anybody with an investible surplus of as little as a few hundred rupees can invest in Mutual Funds.
- The money thus collected is then invested by the fund manager in different types of securities. These could range from shares to debentures to money market instruments, depending upon the scheme’s stated objective.
- It gives the market returns and not assured returns. In the long term, market returns have the potential to perform better than other assured return products. Mutual Fund is the one of the most cost efficient financial products.
Mutual Funds offer
- Professional Management
- Convenient Administration
- Return potential
- Low cost
- Choice of schemes
- Well regulated
- Tax benefits
Mutual Fund does not guarantee the same or does not guarantee any fixed returns.