A mutual fund pools investors' money to make multiple types of investments across different asset classes like equity, debt, gold etc.
The money collected in mutual funds is invested by professional fund managers in line with the scheme’s stated objective. In return, the fund house charges a small fee which is deducted from the investment.
The income / gain generated from this collective investment is distributed proportionately amongst the investors after deducting applicable expenses and levies.
Benefits of Mutual Funds
Easy Access : Mutual Funds can be purchased and redeemed easily. One can begin investing with as less as Rs. 1000 per month in mutual fundsw to Invest in Mutual Fund
The beauty of investing in a mutual fund lies in the fact that they are designed to serve various purposes for investors termed as ‘Goals’. On top of that, investors are further able to opt in for solutions that factor in their age, risk taking ability, asset allocation and time horizon.
Whether investors are looking to park idle cash in the near term, or create a retirement corpus or simply want the benefit of saving tax while earning reasonable returns, mutual funds can cater to every financial goal.