What is mutual fund???

What is mutual fund? :-

(Mtual Fund) is very important to know. This will help you in making investment decisions.

Let's know what is a mutual fund? We are also telling you how you can invest in Mutual Fund?
Mutual fund companies raise money from investors. She invests this money in shares. Mutual funds also charge investors in return.

For those who do not know much about investing in the stock market, Mutual Fund is a good option for investment. Investors can choose Mutual Fund Scheme according to their financial goal.

How to invest in Mutual Fund?
You can invest directly from the website of a mutual fund. If you want, you can also use the service of a Mutual Fund Advisor.

If you invest directly, you can invest in the direct plan of Mutual Fund scheme. If you are investing with the help of an advisor, then you invest in a regular plan of a Mutual Fund scheme.

If you want to invest directly, then you have to go to the website of that mutual fund. You can also go to his office with your documents.

The advantage of investing in a direct plan of Mutual Fund is that you do not have to pay commission. Hence, your returns are greatly increased in long-term investment. One of the problems in investing in Mutual Fund in this way is that you have to do the research yourself.

How many types of Mutual Funds are there in the country?:-

1 Equity Mutual Fund

2 Debt Mutual Fund

3 Hybrid Mutual Fund

4. Solution Oriented Mutual Fund

Also read: Where do I invest to raise fund of six crore rupees?

* Equity Mutual Fund:-

These schemes invest investors' money directly into investment shares. These schemes can be risky in the short term, but in the long term it helps you to earn the best returns. Your return from investing in this type of Mutual Fund scheme depends on how the stock performs.

Investors whose financial goal is to be completed after 10 years, they can invest in this kind of Mutual Fund Scheme. There are also 10 different types of Equity Mutual Fund schemes.

* Debt Mutual Fund:-

These Mutual Fund schemes invest in debt securities. Investors can invest in them to meet short-term financial goals. It is okay to invest in them for a period of less than five years. These Mutual Fund schemes are less risky than stocks and offer better returns than bank fixed deposits.

* Hybrid Mutual Fund Scheme:-

These Mutual Fund schemes invest in both equity and debt. While choosing these schemes, it is important for the investors to take care of their risk taking ability. The Hybrid Mutual Fund Scheme is divided into six categories.

* Solution Oriented Mutual Fund:-

Solution Oriented Mutual Fund schemes are made according to a specific goal or solution. These may have goals such as retirement schemes or education of the child. You are required to invest in these schemes for at least five years.

Charges of Mutual Fund:-

All the expenses incurred in Mutual Fund scheme are called expense ratio. From the expense ratio, you get to know what is the cost per unit in managing a Mutual Fund. Generally, the expense ratio is 1.5-2.5 percent of the average of the weekly net asset of a Mutual Fund scheme.

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What is mutual fund???