Mutual Funds basically are investment schemes which are professionally managed by financial experts. Many of us invest in Mutual funds to generate better returns and to have greater liquidity.
The investment in Mutual Funds could be invested into Shares/Stocks (Equity), Government and Corporate Bonds/Securities/Debentures (Fixed Income) or a mixture of the Equity and Fixed Income Securities.
Mutual Fund units are allocated to investors basis the proportion of their investments and value of these units is tracked as Net Asset Value (NAV) which is daily released by the Fund houses. This is a well-organized sector which is governed by the Securities and Exchange Board Of India ,SEBI as commonly called
In today’s time Mutual funds is one of the most dynamic investment product that a retail consumer can use to effectively beat inflation while growing his wealth. Investing in equity Mutual funds through SIP is a good strategy as it can help you in averaging out any market ups and downs in the long term. This is especially true when markets are in expensive or moderately expensive zones.
In the last few years, Mutual funds are becoming increasingly popular in India. More and more investors are realizing the benefits of investing in Mutual funds through either Lump Sum (One time) or Systematic Investment Plan (SIP) investments.
Mutual Funds provide you the option of investing in various Asset Classes like Equity, Debt, Gold etc to achieve that goal. You can thus diversify your investments and strike the right balance in your portfolio. However smart investment option, an Investor need to evaluate multiple factors to select the best suited Mutual Fund ie his/her Risk taking ability and willingness, Investment Horizon, existing market conditions and the applicable tax structures and Expected Returns.