Tips for Investing in Mutual Funds Market(for starters)

Mutual Fund is a type of investment scheme which is professionally managed, usually run by an asset management company that brings the groups of people and invests for stocks, bonds, and other securities..

If we look from the side of investor, they can buy the mutual funds in the form of “units” and those units represent their share of holding in specific fund scheme

Those units can be purchased or redeemed as needed at the funds current net  asset value .

Asset values keep fluctuating according to the funds holding so each investor participates proportionally in the gain or loss of funds.

All the mutual funds are registered with SEBI Securities and Exchange Board of India. They function within the provisions of strict regulation created to protect the interests of the investor. And investors have to invest on their own risk

In investing there are some advantage and disadvantage for different investor. Biggest advantage in investing through a mutual fund is that it gives small investor access to professionally managed, diversified portfolios of equities, bonds which would be quite difficult to create with a small amount of capital.

Different type of mutual funds have different amount of risk and more risk means more benefits in the language of investors.

There are seven common types of mutual funds as given below:

• Money market funds

• Fixed income funds

• Equity funds

• Balanced funds

• Index funds

• Specialty funds

• Fund of funds

If you really want to invest in mutual funds and start making money through your money then I really want to refer a book that you should have to read before making any investment and the book name is The Intelligent Investor, I am giving you a link from where you can buy this book. "The Intelligent Investor by Benjamin Graham"

PLZ read Points To Keep In Mind Before Investing In Mutual Funds