What are mutual funds for?
Mutual funds are investment instruments that are meant for people who have a smaller appetite for risks, but seek higher returns than they would get on simple saving accounts or fixed deposits. That's not to say that mutual fund investment is free of risk.
Mutual fund investment offers schemes that suit all types of investors. Those who have a larger appetite for risk can invest in equity funds, while those who want to minimize their risks should look at investing in bonds.
A mutual fund is a pool of money from numerous investors who wish to save or make money just like you. Investing in a mutual fund can be a lot easier than buying and selling individual stocks and bonds on your own. Investors can sell their shares when they want.Know more at : assetmanagement.kotak.com
There are dozens of mutual fund houses running in india. Some of the most prominent ones are: a. HDFC Mutual Funds b. ICICI Prudential Mutual Funds c. SBI Mutual Funds d. Reliance Mutual Funds e. Religare Mutual Funds f. DSP Blackrock Mutual Funds g. Kotak Mutual Funds h. Sundaram BNP Paribas Mutual Funds i. Etc.
Mutual Funds are classified as * Equity Mutual Funds * Equity Diversified Funds * Equity Linked Savings Schemes * Large Cap funds * Mid cap funds * Small cap funds * Contra Funds * Sectoral Funds * Thematic Funds * etc... * Debt Mutual Funds * Bond Mutual Funds * Hedge Funds * Fund of Funds * etc...
As all the other instruments in equity and debts even mutual funds carry risk, but mutual funds are considered a better option because ,you investments will be managed by the professional managers who are in the better positions and they can spread your investment across various sectors around the market .Thus we can say that mutual funds are best option of investment in which few mutual funds like reliance mutual funds and DSP mutual funds…
Mutual funds are a professionally managed investment that pools money from many investors to buy stocks, bonds and other securities. The advantages of this sort of investment are numerous. Mutual funds allow investors to diversify over numerous securities, chose investments that match their goals, and do so while enlisting professional management. Mutual funds come in two basic types: index funds and actively managed funds.
A mutual fund which invests a minimum of 65% of its fund corpus in equity and equity related instruments is known as equity mutual fund. As in the case of other mutual funds, equity funds also carry risks as they investment in the stock market. However, they also ensure high returns. Equity funds are of different types such as Index Funds, Sector Funds, and Diversified Equity Funds.
Hedge funds and mutual funds are both managed portfolios in which the securities are picked by a fund manager. The securities that are picked are the ones that the manager feels will perform well and are grouped into a single portfolio. Portions of these funds are then sold to investors who are allowed to participate in the gains and losses of the holdings. However hedge funds are more aggressively managed as compared to mutual funds…