Ever wondered which investment avenue is your type? Whether the research and your insights are aligned well? It.’s a real trouble understanding if the investment is really for you. Before talking about if the mutual fund is the right investment for you, let us first know it from scratch.
What are Mutual Funds?
Mutual funds are funds pooled from different investors, to achieve the same objective. It is managed by a fund manager who charges fees for the same. There are various types of mutual funds, depending on the goal of the investor.
Who can invest in it?
Anyone can invest in a Mutual Fund. You can start from a minimum of INR 500 to the maximum amount you wish to. It’s your choice of how much you want to invest. You are a unit holder in mutual funds, you get units based on your investment. To the proportion of your units is your return. Like equity, mutual funds are also listed with stock exchanges, thus, ensuring security to its unitholders.
Mutual funds are managed by professionals, so, it becomes an easy way to invest and removes the hassle of keeping a track. Depending on the investment objective there are different types of mutual funds. Also, there’s low risk involved in mutual funds as compared to other securities, like equity, etc. A person who has just entered the world of securities can also invest in mutual funds.
Is Mutual Fund the right investment for me?
If you are amongst one of the below then it’s the investment you need.
1. A novice in trading.
2. Prefers low risk.
3. Wants someone else to manage securities.
4. Wants to get a gist of trading in the stock market.
5. Develop a regular investment plan.
6. Looking for long-term gains.
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