Mutual fund investments are the smartest investment – tailored for 21st-century investors. If you are NOT a risky rider, mutual funds are, undoubtedly, the best investment option for you. Buying mutual funds diversify your investment and risk across multiple classes of assets such as equity, debt & gold, bonds, and government securities, which helps diversify the risk – keeping all your eggs safe in one basket.
Mutual funds investment is easy, but which is the best mutual fund to invest in? Seek assistance from experienced mutual fund managers at Stockify. Connect today to enjoy higher-than-inflation returns.
Simply put, a mutual fund is a financial institution that pools investments from shareholders who invest in stocks, bonds, gold, short-term loans, government securities and other assets. Mutual funds are generally managed and regulated by professional asset/money managers, who further allocate the funds, after due diligence, to generate returns on the investment. The investment is done per the objectives of return and portfolio.
Mutual fund investment is perhaps the best choice for small and medium individual investors who do not have time or access to daily market knowledge. Mutual fund portfolio includes multiple asset classes such as bonds, equities and other securities, so the returns are derived by aggregating the performance of underlying investment assets.
Most mutual funds are part of the largest investment institutions that allocate dedicated investment advisors and fund managers working in the best interest of the shareholders. At Stockify, we do thorough analysis and research to help you pick the best mutual funds to invest and grow your portfolio.
Mutual funds usually fall into four main categories – money market funds, bond funds, stock funds, and target date funds. Here mentioned are all mutual funds types that you can invest into multiple investments and embrace gigantic returns.
● Equity Funds:
One of the most preferred mutual funds types, it is referred to as equity or stock funds. There are various equity types suited for different investment requirements. Some are based on the size of the business; small, mid or large, while others are varied by the investment approach; aggressive, income-oriented, value, and so on.
● Fixed Income Funds:
This category consists of mutual funds that have a fixed return on investment. The majority of fixed-income funds include government bonds, corporate bonds and other debt instruments. Yes, they pay a higher return on investment but are not risk-free. Government securities are also fixed-income funds and are much safer compared to corporate bonds. Putting it all together, the risk of return on investment mainly depends on the types of bonds you invest in.
● Index Funds:
Index funds refer to a category of mutual funds or stocks that correspond with major stock exchanges. This strategy usually requires less research as these funds are already designed to keep price-sensitive customers.
● Income Funds:
These funds usually derive a steady income and are often invested in government or in high-quality corporate bonds. However, these bonds are to be held till maturity, making them a perfect mutual funds investment option for retirees or senior citizens who need steady income flow.
● International/Global Funds:
As the term suggests, these funds primarily invest money in stocks that are out of the county. Though the market has been volatile, investing in international/global funds can give you a well-balanced portfolio.
● Speciality Funds:
This category of mutual funds consists of all the popular funds that have been trending but do not fall under any of the above-mentioned categories. This brings you a mixed bag of risk and steady income flow.
● Exchange Traded Funds (ETFs):
The ETFs are one of the most popular mutual funds types that employ the same strategies as mutual funds but are structured as investment trusts. They can be bought or sold anytime in the trading day.
At Stockify, we deal in all mutual funds types and provide unparalleled support with our experienced advisory team. If you are looking for investment options that diversify your portfolio with minimal risk then unlisted shares in India can also be a great option for you. Want to buy unlisted shares? Connect with certified unlisted share brokers in India.
As an investor, you can buy mutual funds from institutions or a broker rather than connecting with existing investors. You have to pay the fund’s share price + any fees applicable at the time of purchase, such as brokerage fees or sales load.
Moreover, mutual funds are redeemable, which means that you can sell the shares back to the fund anytime and withdraw your investment. The funds usually send the payments to the investors within seven days.
Here is the most famous tagline about mutual funds that are still relevant today – “Mutual Fund investments are subject to market risks; read all scheme related documents carefully.”
NAV in mutual funds investment stands for Net Asset Value. The performance of MF schemes is calculated by NAV per unit.
Fixed deposits have little to no market risk, but the return is low. Mutual funds are subject to market risks but return and tax advantages are significantly higher than Fixed Deposits.
Yes, the most attractive benefit of mutual funds investment is that you can withdraw anytime.
SIP is just a method of mutual funds investment.
Mutual funds are regulated by SEBI, so the sense of security and trust come by hand and they give the best profit in the long term.
If you generate profit through dividends and capital gain then tax is applicable on mutual funds investment.
The Security Exchange Board of India has set a minimum of INR 100 for lump-sum and INR 500 for SIPs, so the minimum cap to invest in mutual funds might be slightly higher.