What is a mutual fund, how does it work? What are the types of mutual funds, where should we invest our money? and What is a mutual fund calculator, which fund is best to invest in? Today we will get information about it in very simple language.
There are some of you out there who use mutual funds. And invest your money for ten or fifteen years. There are some people who want to invest their money but they do not get a good platform. That’s why he keeps thinking about where he should invest his money.
In today’s daily life everyone wants to earn money and want to become rich as soon as possible. There are many people living in the world and everyone wants to deposit money for their future. So that in old age there will be no problem of his money, then that person will pass his life well. And some people want to invest their deposited money in such a place. So that they can make a good profit and their investment money does not get lost.
Many of you all want to invest your money. But the company does not invest so that the fraud does not go out. The reason for writing a post about mutual funds is to end all your misconceptions. Some people misunderstand mutual funds, but your money is completely safe in this.
Some people consider the stock market and mutual funds to be the same. But for your information, let me tell you that these two are different. In today’s post, we will know a mutual fund and how to invest money in it. To know the complete information about this, definitely read the post from beginning to end.
What is Mutual Fund?
Now we know what is a mutual fund, what is the meaning of a mutual funds. In this, there is a fund made up of money invested by many people. There are many experienced managers in this who invest the money of this fund properly. Only one world does not invest the money of the funds, it invests the money of that fund in many places. The mutual fund scheme is operated by AMC (Asset Management Company). If we understand in simple words then AMC is called As a Fund House.
Knowing where to invest the fund, its work is in the hands of the person. Those who have complete knowledge about marketing, use the fund, they invest in the right place. Which is called the fund manager (Professional Fund Manager). The job of a Professional Fund Manager is to invest money in the right place and earn maximum profits. And the job of supervising mutual funds is with the Professional Fund Manager.
Mutual Funds are registered under SEBI (Securities and Exchange Board of India). Their job is to keep India’s market under control. SEBI takes care of all the company that no company cheats the people. SEBI takes care of all the invested money. It is completely safe you can invest your money in it. Now all of you must have gone to the society that what is a mutual fund. If you face any problem then you can ask by commenting.
History of Mutual Fund
Now we know about the history of mutual funds, mutual funds were started in India in 1963. In 1978, UTI was separated from RBI for some reason. After that, instead of RBI, IDBI got the right to regulatory and administrative control. And after that UTI started working with IDBI.
The development of mutual funds in India has been done in several phases. Its first phase was from 1964 to 1987, its second phase was from 1987 to 1993. And its third phase ran from 1993 to 2003, its fourth phase ran from 2003 to 2009. But after this, there was an economic slowdown all over the world, due to which all the investors suffered losses. After that people’s trust in mutual funds started decreasing. And then gradually everything started going well again and again people started trusting mutual funds.
In the first phase, a fund of 6700 crores was deposited with UTI and in the second phase, a fund of 47004 crores was deposited with UTI. and In the third phase, private sector funds were approved, which increased many options in it. In the fourth phase, UTI was divided into two parts, first SUUTI and second UTI. Both of them work keeping in mind the rules of SEBI MF.
Types of Mutual Funds
There are many types of mutual funds, but today we will learn about asset Class Based mutual funds.
Equity Mutual Fund
If you invest your money for a long time, then you get a good profit. And if you want to invest money for a short period of time, then your profit is less. This fund invests the entire money on the share market, so the risk is high in this fund. The profit is high in this and its profit depends on the share market.
Debt Mutual Fund
If you want to keep your money safe and do not want to take much risk, then Debt Mutual Fund is a very good option. The money of this fund invests in many such companies like government bonds, corporate bonds, share markets, security, money market, gold, etc. You can invest your money in this fund for any amount of time and withdraw it anytime. This is a mid-term plan, if you want to invest your money for 3 to 5 years then this is a very good plan.
Hybrid Mutual Fund
You can also call a hybrid mutual fund a mixture of these two funds.This fund invests in many such companies like government bonds, corporate bonds, share market, security, money market, gold, etc. This fund is riskier than a debt fund and less risky than an equity fund. You can also invest in it for 1 to 2 years.
Balanced Mutual Fund
In this fund, we want a mixed benefit of Equality Fund and Debt Fund. The money deposited in this fund is done both in Equality Fund and Debt Fund.
Money Market Funds
In this fund your money is safe and you get good profit in it. Such funds provide reasonable returns for the investors in the short term.
Benefits of Mutual Fund
If you all want to invest money in this, then you should be aware of its benefits. Now we know what are the benefits of Mutual Funds.
- You can invest more or less in it.
- If investors need money in the middle, then investors can withdraw money in the middle.
- The investor can also close the SIP whenever he wants.
- There is no investment limit in this, you can start investing in it from 500 rupees.
- The person making the investment can see the statement at any time.
- You can get information about your invested money every day.
- Mutual Funds update their company’s Net Asset Value (NAV) daily.
- If you want, you can choose Mutual Fund Dividend in the mutual fund scheme.
- Your money is safe in Mutual Fund.
- You can make a good amount by depositing a little money in it.
How to Buy Mutual Fund
Everyone can deposit money in the mutual fund for their future. If you also want to invest money in this for your future, you have to buy mutual funds. There are many agents available in the market, with the help of which you can invest in it. And on the internet, you will find many Android apps which you can invest in easily. But there are some of those apps on which people have faith like Groww, MyCams, InvesTap, etc.
Groww Mutual Fund App is such a good platform to invest money. Because I have also invested my money using the Groww app. Sign Up Groww App You can create your account by clicking on this link. If you have already used it, then you must have complete information about it.
How to Invest in Mutual Funds
If you want to invest money in mutual funds, then for that you should know about it. Because if you do not know about it, then do not invest money in the wrong place. To invest in this, you must take the help of a mutual fund advisor.
If you want to invest directly in it, then for that you can also invest from its official website. If you want to know about this, then you should invest directly in mutual funds. This gives you the advantage that you do not have to pay commission to the mutual fund advisor.
Best Mutual Funds to Invest [Top 10}
- Axis Small Cap Fund
- SBI Equity Hybrid Fund
- Axis Midcap Fund
- Parag Parikh Long Term Equity Fund
- Axis Bluechip Fund
- Mirae Asset Large Cap Fund
- Kotak Standard Multicap Fund
- DSP Midcap Fund
- SBI Small Cap Fund
- Mirae Asset Hybrid Equity Fund
In today’s post, we have to know what is a mutual fund and have to know complete information about it. Now you all must have come to know that mutual funds are not wrong. Now you all must have come to know that mutual funds are not wrong. In this, you can invest in your future. How did you all like today’s post and tell by commenting? If you face any problem in this post, you can ask by commenting.
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