So what are mutual funds?
In simple words, it refers to a pool of money collected from people with similar investment objectives that is managed and rolled into the markets in the form of bonds, government securities and stocks.
There are essentially 3 types of Mutual Funds:
1.
Equity Mutual Fund Your money is mainly invested in stocks of large, medium or small companies based on their market capitalization. The risk and return on investment can vary from high to medium to low.
2.
debt mutual fund Money is invested in fixed income instruments with lower risk than government or corporate bonds, corporate debt securities with limited returns and equity mutual funds.
3.
Hybrid Mutual Funds Your money is invested by strategically distributing it in both equity and debt to enjoy the benefits of both worlds.
Now that you know what are mutual funds, let me tell you the benefits of investing in them.
1.
liquidity Mutual funds are considered to be a liquid investment option as you can sell your mutual fund units and get the money within a few days. You may not be able to do this with other investment options.
2.
Diversity – When you invest in mutual funds, you are investing in multiple companies, and this spreads your risk of default. As with the value of all companies, the fund you are invested in cannot fall or rise at the same time and in the same measure, your investment is protected from high levels of volatility. Unlike investing in individual companies, mutual funds offer an option for diversified holdings against default. that how
Diversity
This makes Mutual Funds one of the better options for investing your money.
3.
Affordability – You can start your investment journey with as little as Rs.100. Your returns will be proportional to your principal amount, but you will make proportionate profits with efficient investment planning.
4.
business management – How does the market work? How do you know what is happening to your money? How can you track its movement? What if you invested in the wrong stock? What if you miss to withdraw your investment on time? Many of these questions can be overwhelming. Mutual funds are managed by a team of experts who have the experience and expertise to make the right investment decisions. This professional management of your investments not only helps you to keep your investment safe but grow it judiciously.
There are many benefits of investing in mutual funds. But to understand the benefits of investing in mutual funds, you have to understand the idea of ​​investing in general.
When we earn money, we spend a part, we save the rest. Instead of keeping the money you save idle in your bank account where it may not grow much, you can invest in financial instruments like mutual funds.
With the right knowledge, every investment can be a smart investment, even in a risky market. Also, an accurate knowledge of how mutual funds work will help you make the right financial decisions.
So how to start your investment journey now?
Invest Now!
Disclaimer:
an investor education initiative
meeting
www.icicipruamc.com/note
To know more about the process to fulfill the Know Your Customer (KYC) requirement for investing in mutual funds. Investors should deal only with registered mutual funds, details of which can be verified on SEBI website
https://www.sebi.gov.in/intermediaries.html
For any queries, grievances and grievance redressal, investors may contact the AMC and/or Investor Relations Officers. In addition, investors can also file complaints on
https://scores.gov.in
If they are dissatisfied with the proposals made by the AMC. The SCORES portal allows you to register your complaint with SEBI online and view its status later.
Mutual fund investments are subject to market risks, read all the documents related to the scheme carefully.