Mutual Funds

An Insight into Mutual Funds

A mutual fund is one of the best types of investment that caters to investing a huge pool of small amount from different individuals to make a big investment in multinational companies and corporate shares. The investment is based on individual affordability criterion and then it is collectively investment in big shares. When the returns are calculated and distributed, it ensures that each investor gets his or her share of return on investment. We at Pradip Kothari Financial Services ensure to intelligently manage the mutual fund portfolio of all our clients, even if the investment is Rs 500.

Type of Mutual Funds

There are many different types of Type of Mutual Funds with their distinctive set of benefits. Here are the common types available in India:

Equity Funds

Also known as stock funds, this type of mutual fund caters to investing money of different investors from various backgrounds into shares of different companies. The returns are purely dependant on the performance of the company’s share.

Debt Funds

This is a safe investment in mutual fund with minimal risks. The fund caters to investing money in fixed-income securities like short term plans, long term bonds, liquid funds, monthly income plans, and fixed income plans.

Money Market Funds

The mutual fund with highest risk as it caters to investing the entire amount in the money market securities like T-bills and certificates of deposits. Stated, cash market is always fluctuating.

Hybrid Funds

Also known as balanced funds, this is one of the best mutual funds with a perfect combination of bonds and stocks that defines debt plus returns with higher risks in a well-balanced state of market.

Benefits of Life Insurance

  • There is easy diversification of risks in the ever-fluctuating market
  • Variety of products along with different modes of investment
  • It works at lower trading costs based on the affordability criterion of each individual
  • These are open-ended funds and hence give the benefit of liquidity
  • Various tax benefits are also available on different modes of mutual funds investment

Mutual funds pools money from the general public and Corporates and use that money to buy other securities, stocks, bonds etc. The value of the mutual fund company depends upon the performance of the securities or stocks which they purchased it means when you are investing in any mutual fund you are indirectly buying the performance of its portfolio. Investing in mutual fund is different from investing in stock market in mutual fund your small amount is divided in many stocks or bonds which are there in that fund where as in Shares your amount is invested in a single company.

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