Benefit Of Mutual Fund Investment In India

MUTUAL FUND

A mutual fund is ”pool of funds from large number of investors,who have a common investment objective”.It is professionally managed by “fund manager”.The fund manager invests the funds in different securities i.e stocks, bonds, money market instruments & other securities.

The investors,who invests in mutual funds are known as mutual fund” share holders (or) unit holders”.The mutual fund company allots the units to the investors inproportionate to their investment amount.

Mutual funds investment is best way of investment method for,who does not has proper knowledge about stock market.It gives an facility to invests in mutual funds for small investors with just 500/-. MUTUAL FUND INVESTMENTS

1. LUMPSUM (OR) ONE TIME INVESTMENT :

LUMPSUM is the traditional mode of Mutual funds investment. It is best for who has an bulk amount to invest.It gives good returns to the investor in long term period,subject to fund risk.

2. SYSTEMATIC INVESTMENT PLAN ( SIP ):

Now a days ,SIP investment is the most popular mode of mutual funds investment.Because we can built an corpus in longterm with systematically invests small amounts regularly.Minimum SIP INVESTMENT is 500/-. MUTUAL FUND INVESTING vs.DIRECT INVESTING :

  • Professional Investment Management
  • Risk reduction through diversification
  • Convenience

OPEN ENDED FUNDS

These funds buy and sell units on a continuous basis and, hence, allow investors to enter and exit as per their convenience. The units are bought and sold at the net asset value (NAV) declared by the fund.

CLOSE ENDED FUNDS

Unlike in open-ended funds, investors cannot buy the units of a closed-ended fund after its NFO period is over. This means that new investors cannot enter, nor can existing investors exit till the term of the scheme ends. However, to provide a platform for investors to exit before the term, the fund houses list their closed-ended schemes on a stock exchange.

INTERVAL FUNDS

Interval funds are basically close ended funds.These funds have features of both open-ended funds and closed-ended funds.these funds open for subscription during certain intervals only.

Kindly Go Through this Website To More Information About Stock Market And Investment Policy : https://www.tulsiwealth.com/mutual-funds-investment.php




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