Trending 1. What is a mutual fund? Mutual funds is an investment tool where many people invest money together. This money is invested by a professional fund manager in shares, bonds or other places. Pros and disadvantages in mutual funds are distributed to all investors. That is, you can invest without becoming an expert, using experts. 2. What is SIP? Systematic Investment Plan (SIP) is a way you invest fixed money each month. This makes your investment regular and reduces the effect of market fluctuations. 3. What’s NAV? NAV means net asset value, mutual funds per unit price. It changes daily because the market value changes. NAV influences more or less investment returns. 4. There are many types of mutual funds such as equity funds, date funds, hybrid funds. Risk in fairness, but returns can also be good. Dates are safe but returns are limited. 5. Risk management has some risk in mutual funds because the money is connected to the market. But fund manager and diverse portfolio keep it in balance. The risk decreases in the long run. 6. How does the tax feel? Long-term and short-term investment looks different from taxes. It is necessary to keep tax information in mutual funds. Do tax planning along with savings. 7. Liquidity is easy, liquidity means withdrawing money. In most mutual funds, you can withdraw money whenever you want. Some funds have a locking period, during this period you cannot withdraw money. 8. What is the expansion ratio? These are the fees for managing funds that are deducted from your investment. Less Expen relationship means more returns with you. Therefore, while choosing funds, it certainly takes it to it. 9. Yields are not guaranteed, mutual funds are linked to the market, so there is no fixed return. But in a long time they can give more returns than FD. Only patience and correct plan are needed. 10. How to get started? You can invest online in mutual funds or through an agent. Pan -card, aadhair and bank account are needed. Starting with SIP is better for new investors. Click here Life & Style Click for more stories Click here
10 basic points to understand mutual funds
