Mutual Funds - Introduction

At present Mutual Funds have also become an opportunity of investment and it is providing good results to HNI as well as retail investors. The investment in liquid fund is safe, liquid as well as remunerative also. We are giving a brief description of Mutual Fund for information:

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Mutual Fund Classification

Mutual Funds

Mutual Funds combine the savings of a large number of investors and manage it as a single pool of money. Instead of the investors worrying about which stock or bond or commodity to invest in, professional fund managers do the job. Mutual Funds are run by mutual fund companies, also known as Asset Management Companies (AMC). Each AMC operates a number of fund scheme that suit different types of investment needs.

For individual investors who don't have the time to study and research investments, mutual funds are the best option for reaping the benefits of diversified investments with minimum effort. In most funds, it is possible to start investing with as little as a few hundred rupees. Also, unlike many other investments, mutual fund investments are highly liquid and can be withdrawn without any delay.

Diversity of Funds:

There are a wide variety of mutual funds with a wide range of risk levels, profit potential, and quality of fund management.

As you would expect, funds that invest in equity offer the highest potential returns with the highest risk. At the other extreme there are funds that invest in short-term bonds and deposits which offer returns that are in the range of what bank deposits offer with a high degree of safety. Moreover, there is a wide diversity within the quality of funds. Which means, not all funds have the ability ot deliver what they promise and investors also have to keep an eye on the track-record of specific funds, the fund manager and asset management companies.

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Benefits of Mutual Funds
Investing Options
Mutual Fund Plans

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