Understanding Mutual Funds

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Mutual Funds
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What are Mutual Funds

• Mutual funds give small or individual investors
  access to professionally managed portfolios of
  equities, bonds and other securities.
• Mutual funds provide you with the advantage
  of skilled management, lower group action prices,
  and diversification, liquidity and tax advantages

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Types of Mutual Funds

• Based on your goals and your investment horizon,
  Mutual Funds offer you the choice to
  speculate your cash across varied plus categories 
  like equity, debt and gold. This enables you to
  diversify your investments and attempt to cut
  back your portfolio risk.
• The different types of Mutual Funds are as
  follows
• Money market funds - These funds are generally
  invested in short-run fastened financial
  gain securities like government bonds, treasury
  bills, bankers acceptances, cash equivalent and
  certificates of deposit. They are typically a
  safer investment.
• Fixed income funds - These funds get investments
  that pay a set rate of come like government
  bonds, investment-grade company bonds and
  high-yield company bonds

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• Equity Funds / Growth Funds - Funds that invest
  in equity shares area unit known as equity funds.
  Equity Funds area unit high risk funds and their
  returns area unit joined to the stock markets.
• Tax Saving Funds - Opportunities
  provided below this theme square measure within
  the sort of tax rebates below section eighty C of
  the taxation Act, 1961. they're best suited
  to long investors seeking tax rebate and
  searching for long run growth.

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• Specialty funds - These funds concentrate
  on specialised mandates like property,
  commodities or socially accountable finance.
• Balanced Funds - These funds invest each in
  equity shares and fixed financial gain
  instruments and attempt to supply each growth and
  regular income.
• Debt Fund / Fixed Income Funds - These Funds
  ideal for medium- to long-run investors
  willing to undertake moderate risks.

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Myths about Mutual Funds

• You need to be an expert to invest in mutual
  funds.
• You cannot invest in international market
• Mutual funds are not dependable and only rich
  people can invest in them.
• You can plus or minus stocks anytime

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Mutual Fund Operation Flow Chart
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Key Advantages of Investing In Mutual Funds

• Mutual fund allows for diversification between
  many different stocks while also allowing
  for diversification between various sectors,
  styles, etc.
• Many people do not possess the proper financial
  knowledge to manage their portfolio. Thats where
  expert managers can help them to invest wisely.
• Investments in Equity Linked Savings Scheme
  (ELSS) can save a tax deduction of up to Rs 1.5
  lakh under Section 80 C of the Income Tax Act.
• Mutual funds, dissimilar to a other individual
  investments they may hold, can be exchanged
  every day. Despite the fact that not as fluid as
  stocks, which can be exchanged intraday, purchase
  and sell requests are filled after market close.
• Mutual funds have Low transaction costs.

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Thank You!