Blog 24: Mutual Funds Lessons 2
Why Mutual Funds?
Mutual funds offer decent returns On Investments and have the Potential to build Capital Over time While beating Inflation.
Types of Mutual Funds:
1.Equity Mutual Funds
Large Cap Funds, Small and Mid Cap Funds, Flexi Cap Fund, Equity (Tax Saver).
2.Hybrid Funds
Balanced Advantage Fund, Arbitrage Fund.
3.Debt Funds
Short Term, Credit Risk.
4.Index Funds
5.Thematic Funds
Thematic Funds are Investment Funds that are Focused on Specific themes or Trends.
Benefits of Investing in Mutual Funds:
1.You Can Invest in Small Amounts, Starting With Least Rs 500.
2.Highly Liquid, Can Exit and Enter any Time.
3.By Investing Regularly in Mutual Funds, you Can Achieve your Long Term Goals.
4.Managed by Professional Fund Managers.
5.You Can Save Time.
6.Mutual Funds are Well Regulated.
7.Risk Diversification.
Plans of Investing in Mutual Funds:
1.Direct Plan (Best)
Save Costs Over Time.
2.Regular Plan
Ways of Investing in Mutual Funds:
1.Lumpsum Method
Investing all at Once.
2.SIP Method
Investing Monthly or Quarterly.
Net Asset Value
The Performance of a Mutual Fund Scheme is denoted by its NAV per unit.
Calculation:
NAV =Total Market Value of Assets/Total Outstanding Units
Total Expense Ratio in Mutual Funds:
Fund management Charges and other Administration Costs.
Regulator of Mutual Funds:
AMFI (Association of Mutual Funds in India)
Check my Initial Blog 11 about Mutual Funds.
Disclaimer: This above Information is Only for Educational Purpose, Consult your Financial Planner before taking any Financial Decisions.
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