Mutual Funds are professionally managed investment schemes where money is invested in different instruments such as –
- EQUITY FUNDS. These are invested exclusively in the equities of domestic companies listed on stock exchanges. Equity is categorized as high-risk funds.
- MONEY MARKET FUNDS.These are mainly meant for investors looking for easy liquidity and returns in the short-term. Money Market is categorized as low-risk funds.
- DEBT FUNDS.It is considered as an alternative to Fixed Deposits. Debt funds invest in fixed-income securities. They are categorized as low-risk funds.
- BALANCED FUNDS.A combination of fixed income securities (debt) and equity funds. Hence offers a balanced portfolio to investors.
WHY MUTUAL FUNDS?
Mutual Funds are managed by professional people, who have years of experience in market analysis. They have knowledge and expertise to take a call on buying and selling of funds. Fund managers can prevent your portfolio from becoming stagnant.
Mutual Funds ensure –
- Right Amount of Diversification
- Professional Assistance
- Tax Benefits