A mutual fund is an investment fund that pools money from many investors to purchase securities.
A mutual fund is a pool of money managed by a professional Fund Manager. It is a trust that collects money from a number of investors who share a common investment objective and invests the same in equities, bonds, money market instruments and/or other securities.
Most mutual funds fall into one of four main categories - money market funds, bond funds, stock funds, and target date funds. Each type has different features, risks, and rewards.
Equity funds are the best mutual funds to invest in for the long term. Opt for a growth mutual fund option to easily reach your long-term goals, as the fund's returns will compound over time.
Indexation benefits in long term capital gains taxation of debt funds, certainly give mutual funds a significant tax advantage over FDs. You should evaluate your financial goals and risk appetite to make informed investment decisions.
SIP is a method of investing a fixed amount, regularly - monthly or quarterly in a mutual fund scheme chosen by you. An investor can invest a pre-determined fixed amount in a chosen scheme every month or quarter. In this article we will discuss the different aspects of SIP investments.