// WHAT IS MUTUAL FUND //

What is a mutual fund

Investing in a mutual fund is a simple option for individuals who do not know much about the stock market. Banks and FDs have to be invested for a fixed time whereas in mutual funds we can invest as we wish.

Difference between mutual funds, banks, FDs and shares for investment

BANK and F.D. I have a fixed rate of profit, due to which we get a fixed profit. BANK and F.D. We have to invest our money for a certain time, due to which we cannot use that money.

In order to invest in shares, we need a person or organization who has proper knowledge about shares for which we have to pay a charge or some fee.

We do not require any special knowledge to invest in Mutual Funds and it is also not necessary to invest our funds for a certain period of time. In this we can also invest with small amount (1000) and make profit.

How to invest in Mutual Funds

Investing in mutual funds (MUTUAL FUNDS) is very easy. An investor can invest in the company whose Mutual Fund (MUTUAL FUNDS) has to invest by filling a very simple (SIMPLE) form on the website of the company (WEBSITE). We can also know by reading the company’s prospectus (PROSPECTUS) in which area the company (s) will invest our money and how it will invest. By looking at the information of previous years given on the website, we can get information about how much RETURN (savings) we will get on our investment by studying the risk level and savings level. 

Ex. Reliance mutual funds, sbi mutual funds.

Types of Mutual Fund (MUTUAL FUND)

1. Equity Mutual Fund (EQUITY FUND) – Investors who want to get higher returns can invest in Equity Mutual Fund but it also has higher risk.

2. Debt Mutual Fund (DEBT FUND) – These funds have lower RICS (RISK) than equity funds. Investors who do not want to take more Ricks (RISK) can invest in DEBT FUND.

3. Balanced Mutual Fund (BALANCED FUND) – This fund is also known as hybrid fund. It is a mixture of both equity and debt funds. Investor’s money is invested in both equity and debt funds. In this, the balance of both risk and return remains.