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It depends on the type of mutual fund you want to invest and also the fund house in which you want to invest your money. In majority of the cases the minimum amounts are as follows:
a. One time Investment - Open ended Mutual Fund - Rs. 1000/- and multiples of Rs. 500/- thereafter
b. Systematic Investment - Open ended Mutual Fund - Rs. 500/- and multiples of Rs. 250/- thereafter
c. One time investment - Close ended Mutual Fund - Rs. 5000/- and multiples of Rs. 1000/- thereafter
These numbers are approximate and may vary from fund house to fund house.
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What is the meaning of 'yield' in the world of finance?
Yield is how much money a certain stock or mutual fund is expected to make you. It is similar to interest, it is just basically the % value that you can expect to make on your money. For example, if you invest $500 in a mutual fund that is expected to have a 5% yield, then you would make 5% on your original $500.
What is the difference between a mutual fund and a bond mutual fund?
A Bond mutual fund is a type of mutual fund that invests in bonds and other government securities that are safe and have a fixed rate of return. Whereas the term mutual fund per say refers to equity mutual funds in most cases which invest in the stock market.Bond mf's are safer whereas equity funds come with a certain risk component but at the same time the returns on equity funds are much higher when compared to bond fundsAnswer:Bond funds are investment vehicles that are meant specifically for people who are looking for low risk investment options, but want higher returns than they would get from a fixed deposit. The NAVs of most bond funds don't fluctuate as much as equity funds. Bond mutual funds invest in bonds issued by the government or corporate houses. Mutual funds investment involves a group of investors pooling in their money to invest in securities, which could be stocks or bonds. Mutual funds are considered a low risk-high return investment vehicle. If you're interested in mutual fund investment, you may want to get some professional advice.
What do you mean by mutual fund?
Mutual Fund is an open-ended fund operated by an investment company which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives. Mutual funds raise money by selling shares of the fund to the public, much like any other type of company can sell stock in itself to the public.
What is the best mutual fund to invest in?
The simplest plain vanilla fund to invest in is probably an S&P 500 Index Fund. Nobody selects the stocks to invest in, the fund just buys the stocks of the companies in Standard and Poor's list of large, publicly held companies that trade their stocks on the main American stock markets. These funds pretty much follow the ups and downs of the general market. You should buy your fund from a fund company that doesn't charge a fee for buying and selling the fund ('no load') and charges the least in administrative costs. After all, you're not paying for an expert for an index fund. Some very popular 'no load' fund companies are: Vanguard, Fidelity and Dreyfus. Your library may have a subscription to Morningstar's analysis and ratings of mutual funds. Then you can compare the different funds for yourself and make your own choices.
Why own a mutual fund rather than individual stocks?
Diversity. The point of a mutual fund is to spread out your risk. If you buy $10,000 worth of shares of an individual stock, and that company goes bankrupt, you lose the entire amount. If you buy $10,000 worth of shares in a mutual fund, it will be invested in a variety of different companies, so if one goes bankrupt your shares in the mutual fund might still be worth say $9900, depending on how much the mutual fund had invested in that particular company. Investing in a mutual fund consists largely of choosing one. Once you've done that, that's pretty much it: the fund manager will take care of all the buying and selling details. If you invest in individual stocks, you will need to manage your own portfolio. If you're shrewd (or lucky), you may be able to do better managing your portfolio yourself, but you'll probably have to do more work in order to do so.
Can anyone please explain the Reliance mutual fund website?
Out of all mutual fund websites online, reliance mutual fund has good interface, it is very user friendly and has lot of information for new investors.The website also has an application called wheel of fortune, and the application compute how much money you need to invest regularly.
What is the meaning of 'yield' in the world of finance?
Yield is how much money a certain stock or mutual fund is expected to make you. It is similar to interest, it is just basically the % value that you can expect to make on your money. For example, if you invest $500 in a mutual fund that is expected to have a 5% yield, then you would make 5% on your original $500.
What Are Some Characteristics Of Top Mutual Funds?
If you are looking for a great way to invest your money, you should think about investing in mutual funds. A mutual fund invests in several different sectors of the economy to ensure that your money is always growing. What are some aspects of a top mutual fund?It Consistently Outperforms The MarketThe first thing that you should look for is a mutual fund that has outperformed the market over the last year. This is an indication that the fund manager knows what he or she is doing. It is also a good sign that the securities that compromise the fund are high quality investments.What Types Of Securities Is It Invested In?It is important to understand what mix of securities that the fund invests in. For example, you don't want a fund heavily invested in the stock market during a recession. Instead, you would want a fund invested in bonds or other types of securities. Your quarterly financial statement should tell you how much of the fund is invested in stocks and how much of the fund is invested in bonds.What Company Is The Fund Managed By?You always want a reputable company managing your mutual funds. Although the fund manager is the most important person when it comes to making sure your fund makes money, it is unlikely that a competent fund manager will be working for a shady financial company. Talk to a few different brokers before you decide to invest your money with anyone.Mutual funds are a great way to ensure that your money is safe while also making a profit for you. Whenever you invest in the market, make sure you know where your money is going, who is making the investment decisions and how it has performed recently versus the rest of the market.
What is the difference between a mutual fund and a bond mutual fund?
A Bond mutual fund is a type of mutual fund that invests in bonds and other government securities that are safe and have a fixed rate of return. Whereas the term mutual fund per say refers to equity mutual funds in most cases which invest in the stock market.Bond mf's are safer whereas equity funds come with a certain risk component but at the same time the returns on equity funds are much higher when compared to bond fundsAnswer:Bond funds are investment vehicles that are meant specifically for people who are looking for low risk investment options, but want higher returns than they would get from a fixed deposit. The NAVs of most bond funds don't fluctuate as much as equity funds. Bond mutual funds invest in bonds issued by the government or corporate houses. Mutual funds investment involves a group of investors pooling in their money to invest in securities, which could be stocks or bonds. Mutual funds are considered a low risk-high return investment vehicle. If you're interested in mutual fund investment, you may want to get some professional advice.
What do you mean by mutual fund?
Mutual Fund is an open-ended fund operated by an investment company which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives. Mutual funds raise money by selling shares of the fund to the public, much like any other type of company can sell stock in itself to the public.
What is mutual Fund?
A mutual fund, also referred to as an open-end fund, is an investment company that spreads its money across a diversified portfolio of securities -- including stocks, bonds, or money market instruments. Shareholders who invest in a fund each own a representative portion of those investments, less any expenses charged by the fund. Mutual fund investors make money either by receiving dividends and interest from their investments, or by the rise in value of the securities. Dividends, interest and profits from the sale of any securities (capital gains) are passed on to the shareholders in the form of distributions. And shareholders generally are allowed to sell (redeem) their shares at any time for the closing market price of the fund on that day why invest in mutual fund? There are a variety of reasons why investors might choose mutual funds over other investments, such as individual stocks and bonds. The number one reason is diversity, which can both increase your potential returns and decrease your overall risk. Mutual funds allow an investor to spread out his or her money across as few as a handful to as many as several thousand companies at one time. Funds can be especially advantageous for small investors who would be forced to pay enormous transaction fees if they bought the securities individually, and for investors who either don't have the time to research their own investments or who don't trust their own investment expertise. (For more on asset allocation, see "Build Your Own Mutual Fund Portfolio" tool). That said, mutual funds aren't necessarily low-cost investments. Many of them charge one-time "load fees" to new purchasers that can exceed 5 percent of the investment, and all mutual funds take on average take 1.3 percent of assets a year for operating expenses, expressed as the "expense ratio." As a result, "index" funds (see below) have surged in popularity in recent years because, on average, they provide a much lower expense ratio than managed funds. Also an index fund's risk is limited to that of the benchmark index that it tracks, such as the Standard & Poor's 500. Finally, the rapid emergence of 401(k) plans as the retirement vehicle of choice for millions of Americans means that mutual funds are here to stay. Professional management can be both a benefit and a liability of actively managed mutual funds. Several studies show that, over time, the average, actively managed fund has underperformed the overall stock market. Still, by picking funds with good long-term track records, managers you trust and low expenses, investors can build a portfolio with the potential for steady, long-term returns that match their own investment goals and tolerance for risk. Liquidity -- the ability to readily access your money -- is another benefit of mutual funds. Funds can be sold on any business day at that day's closing price – or at the following day’s close if the sell order is placed after the market closes. The price per share at any given time is known as the net asset value, or NAV, which is the current market value of all the fund's assets, minus liabilities, divided by the total number of outstanding shares. As new investors buy into a fund, the number of outstanding shares goes up, as does the market value of assets, but the NAV remains the same. By sandeep sawant
What is a bond mutual fund?
A Bond mutual fund is one that invests predominantly in bonds and fixed income products. It does not invest in stock market instruments and hence is much more safer than them. But since it invests in fixed income products like bonds the returns are also less than 10% per year.
Why Go with a Mutual Fund?
A mutual fund is not the most exciting type of investment available out there, but they are some of the most consistent. If you are interested in growing your money by approximately 10% per year, then you are interested in mutual funds. They are just one of these things that diversifies your money around enough to basically guarantee success. Most people who do not want to spend the time learning too much about the market will go ahead and purchase mutual funds. It is easy to do this and get on with the other important things in your life. Find a broker that can hook you up with a mutual fund today.
What is the best mutual fund to invest in?
The simplest plain vanilla fund to invest in is probably an S&P 500 Index Fund. Nobody selects the stocks to invest in, the fund just buys the stocks of the companies in Standard and Poor's list of large, publicly held companies that trade their stocks on the main American stock markets. These funds pretty much follow the ups and downs of the general market. You should buy your fund from a fund company that doesn't charge a fee for buying and selling the fund ('no load') and charges the least in administrative costs. After all, you're not paying for an expert for an index fund. Some very popular 'no load' fund companies are: Vanguard, Fidelity and Dreyfus. Your library may have a subscription to Morningstar's analysis and ratings of mutual funds. Then you can compare the different funds for yourself and make your own choices.
Why own a mutual fund rather than individual stocks?
Diversity. The point of a mutual fund is to spread out your risk. If you buy $10,000 worth of shares of an individual stock, and that company goes bankrupt, you lose the entire amount. If you buy $10,000 worth of shares in a mutual fund, it will be invested in a variety of different companies, so if one goes bankrupt your shares in the mutual fund might still be worth say $9900, depending on how much the mutual fund had invested in that particular company. Investing in a mutual fund consists largely of choosing one. Once you've done that, that's pretty much it: the fund manager will take care of all the buying and selling details. If you invest in individual stocks, you will need to manage your own portfolio. If you're shrewd (or lucky), you may be able to do better managing your portfolio yourself, but you'll probably have to do more work in order to do so.
The Best Way To Invest In Mutual Funds?
Mutual funds can be thought of as a collective. A company that has several investors pools everyone�s money together for the purpose of purchasing shares in stocks, bonds and other financial instruments. Those people who have stocks earn money by way of receiving dividends; as partial owners of the company they are entitled to a portion of the company�s proceeds. Those who have bonds are earning money from the interest paid on the money that was loaned. People can also earn capital gains when they sell their shares after the price has increased.Choosing the mutual funds that are likely to bring investors dividends and interest as well as capital gains does not have to be difficult. These investments will be the most successful if the investors do not see them as short-term options. For a mutual fund to be expected to produce a substantial sum in profits, investors need to commit to them for at least three years. What would be even better for them is if they could think of mutual funds as something they will own for over 10 years.As investors resolve to keep their mutual funds for several years, they must also not allow themselves to be tempted to sell their investments when they are not moving up quickly. They must also not purchase mutual funds just because they appear to be moving very dramatically. These investments are for the long-term, and unless they are decreasing in value so much that they would cause the investor to lose a significant portion of the capital, they should be left alone.People who diversify their investments decrease the possibility of losing their original contributions. The nature of mutual funds is that they invest in several different types of stocks, bonds and money market funds. As one industry experiences a significant loss, a mutual fund that has 100 percent of its assets in that fund may lose everything. Those who only had 20 percent of their assets in that particular fund will be in a much better financial position; they may even have investments that are doing very well at the same time that will offset the losses.People need to know that a mutual fund has performed well in the past in order to choose the appropriate place to invest their money. Although it does not guarantee that the mutual fund will continue on its upward path, it is a good indicator of where things are likely to go.
How much does a mutual fund manager make every year?
500,000-1,000,000
