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What are mutual fund?

A mutual fund is an investment vehicle that enables multiple investors to pool their money and invest in a diversified portfolio of securities such as stocks, bonds, and short-term debt. In simpler terms, it's like a company that collects money from several people and uses that money to buy different types of investments. When an investor buys shares in a mutual fund, they own a portion of the fund and are entitled to a share of its earnings.

 

Mutual funds offer investors the advantage of professional management and diversification, which can help mitigate investment risk. By investing in mutual funds, investors can access a broader range of investments than they would typically be able to on their own.

Why do people buy mutual fund?

Mutual fund are a popular investment choice for several reasons. One of the main benefits is that they offer professional management, which means that investors don't have to do the research themselves. The fund manager will select securities and monitor their performance on behalf of the investors.

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Another advantage of mutual funds is diversification. By investing in a variety of companies and industries, mutual funds can help reduce the risk of losing money when one particular company or industry performs poorly. This is often referred to as the principle of not putting all your eggs in one basket.

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Mutual fund are also accessible to a wide range of investors, as they typically require a relatively low initial investment and subsequent purchases. This means that investors can start building their portfolio with a small amount of money and add to it over time.

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Finally, mutual fund are liquid investments, meaning that investors can easily sell their shares at any time and receive the current net asset value (NAV) of their investment, plus any applicable exit fees. This makes mutual funds a flexible investment option for investors who may need to access their money quickly.

Way to Investment in Mutual Fund

Two Way's In Mutual Fund Investment Lumpsum & SIP (Systematic Investment Planning)

Lumpsum

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A lump sum investment in a mutual fund refers to investing a large amount of money in a mutual fund at one time, rather than spreading the investment over time through regular installments.

Systematic Investment Planning (SIP)

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With SIP mutual funds, investors choose the investment amount and investment frequency, and the money is automatically withdrawn from their bank account and invested in the mutual fund system of their choice. Investors can start, stop or change the investment amount or frequency at any time.

Mutual fund Types

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Equity Funds

Hybrid Funds

Debt Funds

Index Funds/ ETFs

Retirement Fund

 Children’s Fund

Mutual Fund Category's Funds

  • Top Searched Schemes: | Axis Bluechip Fund | Mirae Asset Emerging Bluechip Fund | Nippon India Small Cap Fund | Parag Parikh Long Term Equity Fund | SBI Small Cap Fund| Quant Active Fund

  • Important Tools & Calculators: SIP Calculator | Mutual Fund Calculator | Compare Mutual Funds} Mutual Funds NAV | Mutual Fund Nav History | CAGR Calculator| Income Tax Calculator| All Tools & Calculators

  • Explore Mutual Funds Categories: | Equity Mutual Funds | Debt Mutual Funds | Hybrid Mutual Funds| 

  • Popular Mutual Fund AMCs: SBI Mutual Funds | Mirae Asset Mutual Funds | Axis Mutual Funds | Aditya Bilra Mutual Funds | PPFAS Mutual Funds | ICICI Prudential Mutual Funds | Nippon India Mutual Funds | Kotak Mutual Funds | Motilal Oswal Mutual Funds

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