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 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withdrawn without any delay.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
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