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A Compressive Guide on Mutual Funds.

A mutual fund is a pool of money collected from several investors and invested in accordance with a specific investment objective. The money can be invested in stocks, bonds, derivatives, money market securities, etc.<br>Read More: https://navi.com/blog/best-low-expense-ratio-mutual-funds/

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A Compressive Guide on Mutual Funds.

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  1. A Compressive Guide on Mutual Funds A Compressive Guide on Mutual Funds

  2. Overview • About two decades back, the stock market and mutual funds were the domain of the privileged and the financially savvy. But today, they have become a household name with common people investing as little as a few hundred rupees. • While the bank fixed deposits have lost their sheen with plummeting returns, the top-performing mutual funds in India have consistently delivered double-digit returns and enabled massive wealth creation for the masses. • But what is the basic concept of mutual funds? How do they work? What are their features & benefits?

  3. A Comprehensive Guide to Top Mutual Fund Investments • Meaning & Basic Concept • Types of Mutual Funds • Features & Advantages • How to Invest in Mutual Funds?

  4. Meaning & Basic Concept • A mutual fund is a pool of money collected from several investors and invested in accordance with a specific investment objective. The money can be invested in stocks, bonds, derivatives, money market securities, etc. • A mutual fund is established as a trust. An asset management company (AMC) with a professional fund manager and his team is responsible for managing the investors' money. • The best mutual funds in India have a long & consistent track record of superior performance.

  5. Types of Mutual Funds • There are several classifications of mutual funds. But broadly, they can be categorized based on the asset type as: • Equity Funds: As per SEBI regulations, equity funds are those that invest at least 65% of their assets in equity and related instruments. As the risk is relatively higher in equities, they are suitable for long-term investment (above five years) • Debt Funds: A debt fund invests in fixed-income securities like government securities, corporate bonds, and money market instruments. They are suitable for investors seeking stable returns and who want to avoid volatility. • Hybrid Funds: Hybrid funds give the best of both worlds, i.e., higher return of equities and the stability of debt. The debt-to-equity ratio is specified in the scheme's offer document.

  6. Features & Benefits of Mutual Funds • A professional fund management team is responsible for managing a mutual fund scheme • Investment in mutual funds helps you to diversify your investments.  • You can either make lump sum investments or take the SIP route and invest as little as Rs.500 every month. • Debt funds are more tax-efficient as compared to bank FDs. ELSS funds provide tax benefits u/s 80C • Mutual funds are managed according to SEBI regulations that mandate high accountability & transparency.

  7. How to Invest? • To select the best mutual funds to invest in 2022, check the fund's track record over the past 3-5 years. Choose the funds that consistently figure in the top performers' list. • You can easily invest online through the fund's official website or by downloading the investment apps on your phone. You can also visit the local branch of a bank or fund house to invest.

  8. Conclusion • Mutual Funds have emerged as one of the most popular investment avenues in recent times. • It is extremely easy & convenient to invest in mutual funds. The wide variety of funds can suit almost any investor and meet any investment objective. The top-performing mutual funds in India are the perfect means to achieve all your financial goals.

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