What is a Mutual Fund? Is the mutual fund right?

Mutual Fund Investment Plan  :

Hello friends, Whether the money is earned from the job or any business / investment, everyone has hard work + risk. There is less risk and income for those who are employed, but for those who are doing business or investing, Risk is high and income is also high. What is mutual fund Sahi Hai

Today, we will talk about a business / investment approach that is named about Mutual Fund  and mutual funds , if you do not know about it yet. So these tips are for you, so let's understand in a little detail.

What is a Mutual Fund?

Money is invested in the mutual fund, but many of us will know about it, but what is real mutual funds? Know about it,

It is an investment hub where many investors collect money or work together. Mutual funds are such a place where you, our small business, employee money or money is deposited. The money deposited by Investors is used simultaneously on one place, to earn maximum profit.

Each of the Mutual Fund schemes has some properties that are common to everyone,

• Mutual Funds Sponsor: This is the person or entity that sets the mutual fund. The person who sponsor it has to invest 40% of his total amount at least.
• Trust: Launch any Mutual Fund as a Trust of Sponsor and it is necessary to create necessary documents goverment office.
• Asset Management Company (AMC): This is a finacial or management department which is decided by the Trust operator.
• Guardian / Trustee: It is meant to provide security to those who are also Mutual Fund Investors and it is also approved by some bank or the Economic Institute.

Mutual Fund Types:

Mutual funds are very complex and with the help of no expert, it would be a bit difficult to understand for this common people. If we talk about type of mutual funds, then it is divided into 5 parts according to different features.

Asset based funds:

In this type of Mutual Fund scheme , main featur e is asset value and it is stated in 4 sub-categories on asset base.

• Equity Fund
• Debt fund schemes
• Money Market Liquid Fund
• Hybrid Fund

Structured Based Funds:

All schemes coming in this category have a pre-defined structure and the entire investment scheme works on the same basis. Mainly structure fund is distributed in the following sections.

• Open Ended
• Close Ended
• Interval Scheme

Risk based funds:

We all know, business or Money investment plan are all risks and mutual funds are like Share Market plan and on this basis it is distributed in 3 parts.

• High Risk
• Medium Risk
• Low Risk

Investment based funds:

As the name of this scheme comes in the name of the investment and all its sub-plans are dependent on some kind of investment on Saving. for example…

• Capital protection
• Pension scheme
• Tax saving
• Income fund
• Growth Fund
• Fixed Maturity fund

Characteristics based funds:

The biggest interest of the Mutual Fund is that it is not limited to any region or any field. It exists from National to International and from Agriculture to Real Estate to all Field and Area. Based on its similar characteristics, this has been discussed in the following sections.

• Sector fund
• International fund
• Global fund
• Real Estate fund
• Exchange trade fund

How do you invest in Mutual Funds?

There are many Sponsors and Asset management companies  who bring a variety of Mutual Fund schemes. But before investing any scheme and before investing it, it is very necessary that we should have complete information about it.

If you do not understand the Mutual Fund scheme and all its terms and conditions, then our investment can come in risk and we may have less loss of benefits. So first you have to understand it about it with any expert then associated with any scheme mentioned.

• Tata Mutual Fund
• ICICI Mutual
• HDFC Mutual Funds
• Kotak Mutual Fund
• L & T Mutual Fund
• Axis Mutual Fund

Benefits of Mutual Funds:

When it comes to investing, whether there is an insurance plan or business plan and we invest money for it. So there is one thing with that plan that is risk, if you want to invest in mutual funds. So you understand that there is a little risk in it and it is right for a long-term investment.

• But it is much cheaper than the Share Market or Bond Market investment . There is no limit in many plans, you can invest anything.
• You probably will not know, whenever we do any investment, we get tax rebate. Similarly, if you have money in the Mutual Fund, you can also do tax saving.

Friends, we have talked about mutual funds here and have understood some of its main points. If you have to invest money in it and you want to earn money through it. You should first seek advice from a good and experienced expert, after which you can easily invest in it. If you have any questions or suggestions about this, then you must comment.