Last Updated on November 10, 2021 by admin
What is Mutual Fund is it safe to Invest in Mutual Fund?
What is mutual fund or should you invest money in it! Friends Today we will discuss about what is mutual fund. And how to invest in mutual fund? Is it safe to invest in mutual funds? We already discussed about How to Earn Money in Share Market Daily. So read the article to learn Types of Mutual funds and also How Mutual funds work.
What is Mutual Fund? How to invest in mutual fund?
What is a mutual fund? You must have heard about it many times through TV ads or any other medium social media like Facebook, YouTube. And have also heard from people how they are earned by investing money in it. But at the same time, you must have heard wrong information about mutual funds many times. As such it is also a share market and money can be drowned in it. So let us tell you that this is not the case at all. Because even if you invest some of your money in a mutual fund, it is not necessary to drown.
And such money is handled and invested by someone who has a good knowledge of share market or finance and economy. Because mutual funds include money from you as well as many other people.
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People also have the belief that they should have lakhs or thousands of rupees to invest in mutual funds, only then they can invest in it. Then we also make it clear to you that you can invest only 500 in mutual funds. And this investment can be preferred for either long term or short term.
So let us now tell you in detail about mutual fund what is mutual fund? Through which you can invest money in mutual fund. And whether this is right for you or not, let’s get to know better. So that whatever misconception is there in your mind, it can be overcome.
What is a Mutual Fund :
All the people who invest their money in Mutual Funds are invested together at different places by a professional mutual fund manager. The purpose of which is to increase the depositors’ money and to benefit them.
Mutual funds have been placed under SEBI. Which also controls the stock market of the country and its job is to see if there is any company that is cheating people and if there is any Action is taken immediately.
Although mutual funds have been implemented in our country long back. But in earlier times, if we talk back for the last 10 years. Then people did not have proper information about it and if some people also had information, then they felt that it is only for those people who have money. And it is not for those who work in low salary jobs. But this is not the case at all. Today you will also see advertisements about mutual funds, in which it is said that you can invest your money in mutual fund for long term or short term only with the help of 500 rupees. Or you can invest as much as you can afford.
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When Mutual Funds were introduced
RBI started mutual fund in 1963. Its main objective was to attract small investors and open avenues for them to invest. But in 1978 UTI (unit trust of India) was removed from RBI and IDBI was given regular and administrative rights. And in the first phase of mutual funds, it had collected a fund of 6700 crores.
How to invest in mutual funds and is it safe to invest in it?
In the earlier times, if you wanted to invest money in mutual funds, then you had a lot of problems for it. But in today’s time, it has become very easy to invest money in mutual funds. Today there are many online apps and websites that give you the opportunity to invest money in mutual funds. Let’s know about those apps quickly.
Paytm mutual funds– If you want to invest money in mutual fund, then you can invest your money through the app of Paytm mutual fund.
Mutual fund app– You can also invest your money through mutual fund app. So you can download this app from internet or play store.
Axis bank mutual fund– You can also invest your money in mutual funds sip through the axis bank mutual fund app.
For your information, tell us that all these apps are completely safe and trusted, so you do not have to worry.
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Types of Mutual Fund
There are two ways you can look for Mutual Funds. According to one structure, another according to the asset There are three types of mutual funds according to the structure.
Open ended– In this, investors can withdraw their money anytime and they can invest anytime.
Closed ended– In this, the investor never has the freedom to withdraw his money. In a closed ended, their money gets locked for a limited period and till a mention date they can neither withdraw the money or invest their money.
Interval funds– In this, you are given the facility to withdraw and invest your money at an interval.
Assets according to mutual funds
Debt Funds– Invest the money of this investor in government bonds and others in a fixed income.
Liquid mutual fund– In this, your funds are invested in the money given as short term interest and in this your risk is very low because money is given to small traders in the form of loan.
Equity fund – Use equity fund to invest money for a long time. There is a lot of risk with your money here because this mutual money is invested in the share market but it also gives more returns because your those money is invested in good companies.
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What are the benefits of investing money in mutual funds ?
Possibility of getting a good return – If you invest your money in fund, then you are more likely to get a good return because there is someone who invest and handle your money to manage the money and increase the money invested.
Investing money in different places – Those people invest your money deposited in mutual funds in different places and companies. So that if one company or one share is going to lose, then the investors do not have all the money losses is done to increase the money of investors by removing profit from another and elsewhere. In this sense, mutual fund is also a safe option of investment.
Affordable for everyone– Here you can invest with a very low amount, whose minimum amount starts from 500 rupees only and if a person wants to invest his money through share market in a big company to earn direct profit. For that, shares of good companies are very expensive, which are not affordable, but people who do not have money to take expensive shares can invest money through mutual funds.
Advantage of Tax – The biggest advantage in m fund is that you get relief from tax here and you do not have to pay any kind of tax on small amount which you do not get by investing direct money in share market.
Tips ( How to invest in Mutual Fund)
Friends, through this post we have tried to give you the right information about mutual funds. So that all the misconceptions about mutual funds in your mind will be over and we have given you mutual fund. And how can you make more money by investing your money in mutual funds.
Today many people are investing their earning money as future security so that if they ever need more money, then they can withdraw their invested money and fulfill that need. Today everyone wants to invest in mutual funds for this also.
Because many people have also received very good returns from it in the past. And the trust of those people has also increased towards mutual funds. But those people who are still afraid, then let them tell us that there are fluctuations in money here, you will always have to wait patiently that when your money increases then you withdraw your money.
By now you must have understood all the things related to mutual funds. What is mutual fund and how to invest in mutual fund. You should share this information with all your friends so that they also get to know about mutual funds.
So this is from us today about,
What is Mutual fund and how mutual funds work.
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