MUTUAL FUNDS
A mutual fund is a way to invest money together with many other people. A professional manager takes this money and buys different things like stocks and bonds to help grow your investment. It’s an easy way to invest without needing to pick individual stocks yourself.
Types of Mutual Funds
Equity Funds: Invest mainly in stocks. Higher risk, potentially higher returns.
Debt Funds: Invest in fixed income securities like bonds. Lower risk, stable returns.
Hybrid Funds: Combine equity and debt to balance risk and reward.
Index Funds: Track a specific stock market index.
Sectoral/Thematic Funds: Focus on specific sectors like technology or healthcare.
Liquid Funds: Invest in short-term money market instruments. Ideal for parking funds temporarily.
Benefits of Investing in Mutual Funds
Professional management of your money
Diversification to reduce risk
Flexibility in investment amounts and duration
Easy liquidity — redeem units as needed
Regulated by SEBI (Securities and Exchange Board of India)