Mutual fund is an Proposition that pools money of large number of investors to invest in different securities. This money is then managed by a professional Fund Manager on behalf of the unit-holders, to invest it in various financial instruments.
Note: To invest in Mutual Funds, investors need to be Mutual Fund KYC (Know your client) compliant
Types of Mutual Funds
- Equity Funds
- Debt Funds
- Liquid Funds
- Balanced Funds
Features & Benefits
- Risk diversification – Diversification of funds in equity and debt securities.
- Liquidity – Investor can do partial or full withdrawal as per their need.
- Transparency – Investors know where exactly money is getting invested.
- Low cost – No entry load while investing in mutual fund.
- Professional management- Industry experts will manage the funds.
- Tax efficient – Investor get tax benefit in equity and debt funds.
- Flexibility – Flexibility to switch investment amount from one fund to another fund.