Do you also want to know what is a mutual fund, how to invest in it, then friends, today we tell you what is Mutual Fund and how and why it is important to invest in it?
In today's time, everyone wants to keep their future safe and every person tries for this, that's why they make new efforts so that some Savings and Security Maintain for the future can run and in any good or difficult time The money can be used.
What is Mutual Fund and how to invest : Complete Guide
The Mutual Fund was established in 1963 with the formation of the Unit Trust of India, initiated by the Reserve Bank of India (Rbi). The objective of starting the Mutual Fund was to allow small investors and to make them aware of the movement in the market.
In India, mutual funds have been divided into several types which you will get to see here and will also help you to a great extent in investing.
How to Invest in Mutual Fund -
Now any person can do Mutual Funds sitting at home very easily. Nowadays the trend of Online Transaction has also increased under which everyone can put money anywhere. Many online apps also provide the services of investing, by whose wallet you can invest.
Such online services have proved more effective for those people who want to invest but they do not have time to run. That is why in the first time people were deprived of excessive information and avoided investing. It is very important to reach you some correct information about Mutual Fund which can give you a good life with a safe future.
Mutual Fund is a very good option for people who are not familiar with investing in Mutual Fund and are interested in investing. Mutual Fund works to raise money from investors so that she can invest this amount in shares and for this, she also charges with investors.
So let us inform you about the mutual fund to invest and will tell you what are the benefits of investing in it. As such, firstly you should know that you can invest in Mutual Fund in a very easy way and that too by opening the website of Mutual Fund directly. There will not be a waste of your time in this and you can also collect information related to Invest sitting at home.
For this, you can also invest in a direct plan and take help from any Advisor for complete information, which will help you understand the scheme of Mutual Fund. You benefit from investing in Mutual Fund, you do not have to pay any commission in this way and that is why there is a lot of increase in Long Term Investment Return.
A mutual fund is a collection where many people's money is deposited as a fund and companies invest this money in shares. Apart from this, important information is that for those who do not have a lot of investment knowledge, investing in Mutual Fund cannot be a good option.
One thing to know in this is that if you want to invest through fund managers then you will feel more safe and secure because in this all your Documentation Formalities are met very carefully and all the formalities are completed in the eyes of the manager. Followed by rule and regulations.
Types of Mutual Funds -
Now you must be thinking that where will be more appropriate to invest in Mutual Fund, then let us tell you how many Mutual Funds are there and where you can invest. There are many types of mutual funds which have been set according to the convenience of the investors and you can also invest according to your understanding and need. for example
1. Open-Ended Mutual Fund:
Investors like this fund very much because there is no fixed duration. In this fund, investors can sell and buy the fund at any time and there is no time limit and investors can enter and exit in this fund at any time.
But if any investor does Exit before a year for a fixed time, then he has to do some Charge which is known as Exit Load. And this is the reason why investors take more interest in this fund.
2. Close Ended Mutual Fund:
This fund is also called a type of trading fund. In this fund, investors are given a period as these funds can be bought only within the given period. Apart from this, the time limit is already fixed in the Close Ended Mutual Fund and cannot be invested after that time as the direct investment is closed after the completion of time and hence it is called Close Ended Mutual Fund.
3. Interval Fund:
Investing in Interval Fund is similar to FMP, Entry Fund and Exit are allowed in Interval Funds at very short time intervals and its special thing is that your money is not locked for a long time. With this, you do not have to bear any risk in the interest rate.
The interval fund has performed very well compared to the rest of the funds and even the investors in you can invest comfortably because it gives them a chance to get out of it before maturity. And these intervals are monthly, quarterly and yearly
These were the types where an investor can invest and that too at No Risk. Now we want to tell you about some more funds which are safe as well as risk-free. Therefore, these funds are also known as types of mutual funds.
4. Debt Fund:
Debt funds provide fixed returns and these funds give a lot of work to the investors at very low risk and if the salary of the investor is high, then the investors have to pay tax.
5. Money Market Fund:
This fund is called very appropriate and convenient Short Term Fund because in this the investor gets a proper return.
6. Hybrid Mutual Fund:
Now you will know what a hybrid mutual fund is. It can be read in seven forms. This means that the market regulator SEBI has defined it by creating seven hybrid schemes so that no investor has any difficulty in understanding it and they invest in more than one asset class.
With this, its special thing is that even such investors can put money in it, who can take less risk. This is a very good scheme because this scheme can be used to achieve different goals.
7. Solution-Oriented Mutual Fund:
Solution-Oriented Mutual Fund (Solution Oriented Scheme) has a lock-in five years and the scheme is to keep your investors engaged for a long time.
This scheme can also include a scheme like a Retirement and a child education and can help in their studies in the future. That is why it would be appropriate to invest for at least five years under this scheme, this also keeps the habit of investing in investors.
The right qualification for admission in Mutual Fund:
Now we are going to tell you the merit of Mutual Fund so that you do not have any incomplete information at the time of reaching any stage of the Mutual Fund. Therefore, you need to know what should be the qualification to enter any mutual fund.
First of all, let us tell you that any person can invest in a mutual fund, as we have already explained to you. So now we would like to tell you one by one like.
* You can invest up to Rs 500 in Mutual Fund
* This scheme applies to both Indians and NRIs.
* You can make this investment in the name of anyone, like children or your life partner etc.
* You can also make these investments in the name of your minor children, but for this, you will have to give all your information and till the age of 18 years, you will have to keep the complete details of that investment.
What is the average rate of return in a mutual fund?
So the simple answer to this is, the hybrid scheme gives an annual return (profit) of around 10% and the debt scheme is about 8%…
So, friends, there is very important information related to the mutual fund, which was very important to reach you. We hope that this article will be liked as much as it was every time. Our article today can prove to be very successful for investors. Stay connected with us and do not forget to share your comments with us.