Mutual Fund

At a Glance

Diversification: Mutual funds allow individual investors to gain exposure to a diversified portfolio, even with a relatively small investment. This diversification reduces risk since the performance of the fund is not tied to any single asset.

Professional Management: Portfolio managers and analysts make investment decisions on behalf of the investors, saving them the time and effort of managing individual investments.

Liquidity: Mutual funds are typically liquid, meaning investors can buy or sell their shares at the end of each trading day based on the fund’s net asset value (NAV).

Variety of Types: There are various types of mutual funds, including equity funds, bond funds, index funds, and money market funds, each catering to different investment strategies and risk profiles.

How They Work:

    Investment Pooling: When you invest in a mutual fund, your money is combined with that of other investors.

    Fund Allocation: The fund manager then invests the pooled money in different assets as per the fund's strategy.

Return on Investment: The value of your investment increases or decreases depending on the performance of those assets.

Since every mutual fund is regulated by SEBI, you need not worry as your investments are safe. SEBI has several regulations & legal frameworks in place which ensures that your investments are managed in a disciplined manner. Now it's true that every investment is subject to certain risks, however, prudent selection based on strong market knowledge & fundamentally sound securities with diversification can help hedge such risks and generate high returns on your investments