Mutual funds are investment vehicles that pool money from multiple investors to invest in diversified portfolios of stocks, bonds, or other securities, managed by professional fund managers.
Mutual funds collect money from investors, which is then invested in a portfolio of assets according to the fund’s investment objective. Investors own units or shares of the mutual fund, proportionate to their investment.
Mutual funds come in various types such as equity funds, debt funds, balanced funds, index funds, sector-specific funds, and more. Each type serves different investment objectives and risk appetites.may deteriorate, ultimately increasing your term policy premiums. Buying an online term plan allows you to secure your family at affordable premiums with a large life cover for a long tenure.
Benefits include diversification, professional management, liquidity, accessibility for small investors, potential for higher returns, and tax efficiency in certain cases.
You can invest in mutual funds through fund houses or asset management companies (AMCs) either directly or through intermediaries like banks, brokers, or online platforms. KYC (Know Your Customer) compliance is mandatory for investing.