Mutual funds are the new hot topic in town. Tune in to find out what is mutual fund investment and how do mutual funds work. Compare the efforts of manually investing in stocks with investing in mutual funds while also benefitting from the other advantages such as professional management and more diversity. Explore this easy means of investing.
So what do we know about mutual funds?
Let us really understand mutual funds and its benefits.
So what is a mutual fund? A mutual Fund is a professionally managed collective investment vehicle that pools money from many investors to buy securities. It’s more like an avenue that lets you diversify your investments across different asset classes and within an asset class. And investors don’t have to break their heads over it all on their own, because Mutual Funds offer the big benefit of professional money management expertise.
Think of a Mutual Fund Scheme as somewhat like the bus. It’s a collective investment vehicle that has a clearly stated investment objective…like getting from point ‘A’ to point ‘B’ and is managed by professional fund managers at nominal cost! And an investor could invest in the scheme if its objective is in line with his personal needs. By knowing what is mutual fund investment, the investor has outsourced the job of managing his money. The fund manager would then invest the money in line with the stated objective, do the research to select the underlying instruments, build a portfolio, keep track of those investments, make changes when required and so on…
A few advantages of Mutual Funds are:
• They offer flexibility to investors letting them decide when to start investing and, in most cases, when to withdraw their investments
• One doesn’t need financial expertise to invest in Mutual Funds
• The additional cost of skills required is divided among all the investors which reduces the per investor cost
Read up more about Mutual Funds:
https://www.franklintempletonindia.com/templatedata/gw-content/article/data/content-international/en-in-retail/investor/beginners-guide-chapter8-_io04og32
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