Investing in Financial market is easy and cost-effective through Mutual Funds. The concept of Mutual Fund was introduced in India back in 1963 with the initiative of Government of India and RBI. Initially, there was not so much of buzz, however, after few years in 1987 Mutual Fund made news all over India. But it was between March 2003 and March 2011 when the industry annual growth rate increased at 31.25%.
There are several benefits of investing in Mutual Funds apart from liquidity, tax benefit, affordability and professional management, Mutual Fund is the best way to get maximum return on your earned money. SIP is a very effective way to invest in equities in a systematic manner.
There are several types of Mutual Funds that one can opt for:
1. By Structure:
a. Open Ended Scheme:
In this the company raises money from shareholders and invests them in a group of assets.
b. Close Ended Scheme:
These are the funds that can be bought or sold during NFO (New Fund Offer) period.
c. Interval Schemes:
It is a combination of Open Ended and Close Ended Schemes.
2. By Nature:
a. Equity Funds:
The fund invest maximum amount of their money in equities.
b. Debt Fund:
This is for those who look out for low risk and stable income. These funds invest money in debt instruments and hence are suitable to those who are looking out for stability.
c. Balanced Funds:
Under this, the fund buys a combination of short-term bonds, preferred stocks, common stock and bonds.
Any new investor, looking out to invest in equities can choose from mutual funds or individual stocks. However, it is advisable to know the difference between the both before making a decision.
Later, one you have understood the basic of Mutual Fund and its various types, you ought to take advice of a financial expert and start investing for a better and secured future.
For more information on Mutual Fund products and offering, kindly click here: http://www.utimf.com/Contact-US/Pages/default.aspx
No comments:
Post a Comment