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WHAT IS MUTUAL FUND? Mutual Fund Benefits || Finansy Blog


A Mutual fund is an investment fund that takes money from many investors such as big investors and as well as small retail investors and invest that money to different market securities such as Equity,Bonds,Debt etc.


Mutual fund operations process circle jpg.2023
Mutual fund operations process circle

TYPES OF MUTUAL FUND

  1. Equity funds

  2. Debt funds

  3. Index funds

  4. Tax saving funds

  5. Hybrid funds

  6. Lequid funds

  7. Money market funds etc.

But most of the people prefer Equity funds.


There are 3 Types of Market Cap Funds

  1. Large Cap

  2. Mid Cap

  3. Small Cap

Large Cap:- The Companies which market cap are Large. These are the top big companies of any Country. Approx Market Cap is More than 20000 Crores.


Mid Cap:- The Companies which market cap are Medium. Approx Less than 20000 crores and More than 5000 crores


Small Cap:- The Companies which market cap are Small. Approx Market Cap is Less than 5000 crores.


IS MUTUAL FUND IS AN GOOD INVESTMENT OPTION?

There are already many past research happend,based on that it is proved that Mutual fund returs beat FD returns for long times. And if you have patience and have plan for long term wealth then no doubt it is one of the best investments plan.


WHICH IS THE MOST POPULAR AND SAFE EQUITY MUTUAL FUND?

According to Market data, Index Fund is the most popular and dependable mutual fund.

And it's also considered to be the most safe Mutual fund among all the equity funds.


WHY INDEX FUND CONSIDERED TO BE THE BEST RETURN GENERATOR FOR LONG TERM?

The one of the greatest investor of all time Warren Buffett always tells that Index fund always beat all the funds for long term.

And it's already proven that Index fund is constantly generated 12% CAGR for last several decades.

And it's made by the top most large companies of any country's Index. So it's also quite safe and less volatile than other mutual funds.


Long term wealth creation by investment jpg2023
Long Term Compounded Wealth Creation

WHAT IS SIP?

The full form of SIP is Systematic Investment Plan. Through the process of SIP you can Invest to Mutual fund and create your long term wealth.

You can start your Sip from just rs 100 , however many mutual funds minimum sip amount starts with rs 500 and 1000.


CAN I WITHDRAW MONEY ANYTIME FROM THE MUTUAL FUND?

Basically the answer is Yes.

But there are few Mutual funds who lock in your money for their lock in period.

So before investing you should check the lock in Yes or No in the terms and condition brochure.


This is the Part-1 of our Mutual fund Learning and Analysing Blog.


Others part will upload very soon.

Stay tuned...

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