Mutual Fund Tips: How you can invest in mutual funds, every detail

Mutual Fund Investment Tips: How you can invest in mutual funds

Mutual Fund Tips How to invest in Mutual Funds: You may also hear from experts that mutual funds (Mutual Fund) are a good option for investment, where returns are also good.

That's where the risk remains lower than the stock market. But not necessarily everyone understands the mutual fund market. So it is very important to know mutual funds before investing.

This will help you make investment decisions. Let's know what mutual funds are, how much of it is deducted, how much returns can be achieved. Also learn how to invest in mutual funds.

What is Mutual Fund?

Mutual fund companies raise money from investors. They invest this money in assets such as stock markets, bonds and government securities. Instead, mutual funds also charge investors fees.

There are many mutual fund houses in the country that appoint fund managers to invest. The fund manager knows the market well, who, by his own understanding, invests in a fund that has the highest profit.

These companies earn by taking commission from investors to invest in mutual funds. Mutual funds are a good investment option for those who don't know much about investing in the stock market. Investors can choose the scheme according to their financial goal.

How to Invest in Mutual Funds

You can invest directly from the website of a mutual fund. You can also take the service of a mutual fund advisor if you want.
If you invest directly, you can invest in the direct plan of the mutual fund scheme. If you're investing with the help of an advisor, you invest in a regular plan.
If you want to invest directly, you'll have to visit the mutual fund's website. You can also go to his office with your documents.
The advantage of investing in a direct plan is that you don't have to pay commission. So your return in long-term investments increases a lot.

One time and SIP facility

Just as a shareholder is a shareholder who invests in a stock market, so those who invest in mutual funds are called unit holders. Mutual fund companies issue 'new fund offers' to deposit funds.

Units are given to those investing in mutual funds. Here, some amount per unit is fixed, not at a discount or premium. You can invest all the money at once or also through SIP. SIP means you invest a fixed amount in mutual funds every month or within the stipulated time.

Benefits of Investment

The advantage of mutual funds is that your investment here is managed by the fund manager, who has a good market understanding. In such a situation, he invests your money thoughtfully, where returns are expected to be better.

That's where your portfolio diversifys through mutual funds. Because here money is invested in different shares or asset classes instead of just one share. This covers one if there is a risk in the other. Your money is also invested in debt funds, which keeps money safe even if there is market volatility. You can also save tax by investing in ELSS category.

Types of Mutual Funds

Growth/Growth Equity Mutual Funds

More part of the amount in equity mutual funds is invested in equity. That is why it is also high in risk. The scheme provides two options to investors, either select a dividend scheme or capital growth. They can also change this option later. This is a good option to invest for a long time. The average return of 10 years in these funds can be 12 to 15 per cent. Category: Large cap Fund, Multi cap Fund, Large and Mid cap Fund, Mid cap Fund, Small cap Fund, ELSS, Sectoral Fund

Debt/Income Scheme

Debt funds are a good option for those who do not want to take much risk and want a regular and stable income.

Most of the money in the scheme is invested in bonds, debentures of companies and government security. Because they are all like dates, market volatility has no effect on it. All these options give investors a regular income. It has less income than equity but also lower risk. The average return of 10 years in these funds can be 8 to 10 per cent.

Category: Ultra Short Duration Fund, Short Duration Fund, Medium Duration Fund, Long Duration Fund, Liquid Fund

Balanced Funds/Funds Hybrid Scheme

As the name suggests, these funds are balanced. These funds are invested in both equity and debt. So that investors continue to get regular income as their income increases. This document already tells us how much money you will invest in which scheme. It is usually a ratio of 40:60. Speaking of this segment, the average return in the last 10 years may be in double digit.

Solution Oriented Scheme

This scheme is built according to a particular goal or solution. These may include goals such as retirement schemes or child education. You need to invest in these schemes for at least five years.

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Hi , This is Pramod Choudhary from Nagaur Rajasthan India. I an student and I would like to share my positive thinking with everyone that's my passion . Thank you