mutual fund

Should I Invest In Mutual Fund?

After earning money and spending money, the most important aspect of financing is saving.
But does saving money only mean keeping money in places like bank or post office? That is not the case at all.
If the inflation of the economy is understood, then based on this inflation rate, it can be said that the thing which is being bought for 100 rupees today cannot be bought for 100 rupees after a year.
So Bank’s Savings A/c or if money is kept at home then there is loss.
Investment is the only way to increase the value of money. Money should be made with money.
One such money investment platform is mutual fund. Basically, a mutual fund is created by pooling money from a large number of investors.
But, is the mutual fund so simple?
So, let’s have an idea then, how much is right or wrong to invest money in mutual fund.

1. Diversification of Money

If you invest money in different sectors then you have more chance of profit than loss. This is called diversified investment. Like, you can invest some of your savings in stock market, some bond market, some in gold, some in real estate and property. In simple words, spreading the investment within different asset classes.
Mutual funds offer a path where you can diversify your money. In mutual funds basically you give your money to the Asset management Companies (AMC) and they diversify your money with the expertise of reputed financial advisor.

2) Some Facts and Process of Mutual Funds
According to the Unit Trust of India Act (UTI Act, 1963), Government takes charge of mutual funds.
Initially, some Government banks and financial institutions like PNB bank, General insurance corporation came to RBI-administered mutual funds.
Later, when SEBI came in 1993, some private sectors also started to coming in mutual funds.
After that some international companies like Mongan Stanley, JP Morgan also came with their mutual funds to India.
★ Process
Trust→ Sponsors→Asset Management Company(AMC)→Fund Manager

  • Trust – According to SEBI Rule mutual fund can be formed like a trust.
    So before starting mutual fund first mutual fund trust is created.
  • Sponsors – After the trust, sponsors of the mutual fund are selected. These sponsors play a very important role in mutual funds. In addition to investing money, who will be the trustee in the mutual fund trust and all the matters related to the approval of SEBI are seen by the sponsor.
  • Asset Management Company(AMC) – Asset management companies help you to diversify your money through mutual funds. Some examples of Asset Management Companies are SBI Mutual Fund, Tata Mutual Fund, ICICI Prudential Mutual Fund etc.
    The main task of AMC is to launch different schemes of mutual funds.
    AMC has the responsibility to share all the details with the investors before launching any scheme of mutual fund. The information shared by AMC before buying some parts of different shares called units becomes very important for investors.
  • Fund Manager – In mutual fund, fund manager is basically a financial expert who has a research team with him. Some duties of fund manager are analyzing financial statements of various companies, looking at profit & loss, revenue & expenses etc. Moreover, this fund manager also talks with higher authorities of big companies.

3) Types of Mutual Funds
As per the variety of risk, mutual funds are divided into 3 main categories
I) Equity II) Debt III) Hybrid
I) Equity Mutual Funds – Equity mutual funds are generally those types of mutual funds where your money is invested in the stock market. Therefore, the risk and return of this category of mutual fund is high.
II) Debt Mutual Funds – Debt mutual funds are those types of mutual funds which are invested in debt instruments. Debt instruments are Bond, Debentures, Certificate of deposit etc.
This category of mutual fund has less risk and less return.
III) Hybrid Mutual Funds – Generally, hybrid mutual funds are a mixture of equity and debt mutual funds.
If most of the money is invested in debt funds then it is called Balanced Savings Fund.
Approx ratio is 60:40, 60=Low Risk, 40=High Risk
On the other hand if most of the money is invested in equity funds then it is called Balanced Advantage Funds.
Approx ratio is 60:40, 60=High Risk, 40=Low Risk

4) Difference between Mutual Funds and Stock/Share
By now you have got some idea about mutual funds. Now the question comes where you will invest, in the stock market or in mutual funds? Or both?
Whether you are a beginner or an experienced investor, these questions can give you a headache.
Let’s have an idea then.
Actually there is no direct answer whether mutual fund is better or stock/share. Totally depends on your situation.
If I tell the difference between these two, then maybe it will be convenient for you to understand the matter.

  • Management
    Basically you have to control everything related to investment by investing directly in stock.
    On the other hand, by investing in mutual funds, you don’t have to see anything about the investment, you are getting the expertise of the fund manager.
  • Diversification
    You can diversify your money by investing in mutual funds. There is no such opportunity to invest in shares or stocks.
  • Knowledge and Business skills
    If you want to gain knowledge and develop future business skills, you can definitely invest in the stock market.
    On the other hand, since mutual funds are controlled by the fund manager, you don’t have to rush for knowledge. Developing business skills by investing in mutual funds is not so easy.
  • Time and Surplus
    If you are a student and you have time to gain knowledge apart from other responsibilities, you can definitely think about stock market. Like time, if you have some money as surplus after other investments, then you can think of stock market. Because as a fresher, if you invest in stock, the possibility of loss is high in the beginning.
    On the other hand, since you don’t have to invest time in mutual funds and you can start investment with a very minimum amount, so there are not so many possibilities.
    All the conditions and differences are placed before you. Now you can decide based on your situation which is the best option for you to invest money.
    Advantages of Mutual Funds
  • Probability of Huge Return – As per mutual funds category you are getting opportunity to participate from zero to high risk by investing money here. So in mutual funds there is a chance to get huge return. The more risk you take, the more return to get.
  • Liquidity – Mutual funds are considered as one of the liquid assets that can be easily converted into cash. Scheme like Liquid funds provide an instant redemption facility. You can assume this alternative of savings account.
  • Tax Benefits – In mutual funds there is a special type of scheme, called Equity Linked Savings Scheme(ELSS). By this scheme you will get tax benefit on profit under section 80C of IT Act.
  • Diversification – As I said before, you can diversify your money in mutual funds by spreading the investment within different asset classes .
  • Affordable Investment – If you want you can start mutual funds with very minimam amount of investment. By the Systematic Investment Plan(SIP) your money will be deducted as monthly debt from the bank and it can be any amount of money like 500 or 1000.
  • Experts Guidence – In mutual funds you will get expertise of fund manager. This fund manager is diversifying your investment. So, you don’t need to take any headache related to investment.
    Disadvantages of Mutual Funds
  • Choose Safty First – The investment of mutual funds is managed by the fund manager and they are salaried employees. So, they give more priority to the safe option in terms of investment. Because even if there is no profit, they don’t want it to be a loss. In case of loss, they have to answer to AMC and there is a risk of job loss.
  • No Experiment – When the market is down, if the public withdraws money from the fund or sells its own mutual funds unit, then the fund manager is forced to withdraw money from the fund and give it to the public. In this case, the fund manager cannot experiment even if he wants to. Some mutual funds focus on how much fund has been collected rather than public profit.
  • Entry and Exit problem – A good investment strategy can give results only when it is in your hands when to invest and when to withdraw.
    This is not always possible as the entry and exit is not in the hands of the fund manager.
  • Liquidity Issue – Schemes like ELSS or fixed deposit alternative Fixed Maturity Plan come with some lock-in period. So you can’t withdraw money as per your wish.

Conclusion
Yes mutual fund investments are subject to market risks. But mutual funds offer a diversified and professionally managed approach. So, you can take a chance as per your requirements.
Mutual fund regulated by SEBI, so don’t worry about your money. However, before making any investment in mutual funds you should consult with financial advisors and be aware of market trends.

This Post Has 277 Comments

  1. Baler chele

    Eta soronio hoye thakbe lekha ta

  2. acerv

    Hello, dear friends!

    Are you on the lookout for a dependable and budget-friendly hosting provider for your website or online venture? If so, I’ve got just the thing for you!

    I’ve curated a dedicated page on my website where I share my firsthand recommendations for the top-notch hosting providers available in the market. On this page, you’ll discover a diverse array of hosting services catering to various needs, including VDS, VPS, dedicated, and even bulletproof hosting.

    Whether you’re in need of straightforward hosting for your blog, robust hosting for your e-commerce platform, or secure hosting for your sensitive data, rest assured, you’ll find the perfect match for your requirements on my page.

    Don’t let this opportunity slip away! Head over to my page now and select the ideal hosting provider to propel your online endeavors to new heights!

    https://stash.surge.sh/posts/info-hosting-recomendations/

  3. binance signup

    Your point of view caught my eye and was very interesting. Thanks. I have a question for you.

  4. binance account

    Your article helped me a lot, is there any more related content? Thanks!

  5. Parrainage Binance

    I don’t think the title of your article matches the content lol. Just kidding, mainly because I had some doubts after reading the article.

  6. www.binance.com注册

    Thank you for your sharing. I am worried that I lack creative ideas. It is your article that makes me full of hope. Thank you. But, I have a question, can you help me?

  7. Konto na Binance

    Can you be more specific about the content of your article? After reading it, I still have some doubts. Hope you can help me.

  8. Binance úcet

    Your point of view caught my eye and was very interesting. Thanks. I have a question for you.

  9. binance

    Thanks for sharing. I read many of your blog posts, cool, your blog is very good.

  10. Thank you for your sharing. I am worried that I lack creative ideas. It is your article that makes me full of hope. Thank you. But, I have a question, can you help me?

  11. 创建Binance账户

    I don’t think the title of your article matches the content lol. Just kidding, mainly because I had some doubts after reading the article.

  12. Jerald Ekhoff

    My husband and i got very relieved Albert could deal with his studies through the ideas he made through the blog. It is now and again perplexing to simply continually be handing out tricks some people could have been making money from. And we also fully grasp we have got the blog owner to appreciate for that. All the illustrations you’ve made, the simple blog navigation, the friendships you will give support to promote – it is most great, and it is making our son and our family reckon that this content is awesome, which is certainly very vital. Many thanks for all!

  13. I don’t think the title of your article matches the content lol. Just kidding, mainly because I had some doubts after reading the article.

  14. Davidpaw

    Kamagra Oral Jelly pas cher: kamagra gel – kamagra en ligne

  15. Bradleyboida

    Cialis sans ordonnance pas cher: Cialis en ligne – Acheter Cialis 20 mg pas cher tadalmed.shop

  16. BernardGuelm

    Achetez vos kamagra medicaments: kamagra pas cher – Acheter Kamagra site fiable

  17. Bradleyboida

    Pharmacie en ligne Cialis sans ordonnance: cialis prix – Acheter Cialis tadalmed.shop

  18. BernardGuelm

    Tadalafil 20 mg prix sans ordonnance: Cialis generique prix – Tadalafil achat en ligne tadalmed.shop

  19. Bradleyboida

    Cialis generique prix: cialis generique – Cialis sans ordonnance 24h tadalmed.shop

  20. BernardGuelm

    Kamagra pharmacie en ligne: kamagra en ligne – Achetez vos kamagra medicaments

  21. BernardGuelm

    Kamagra Commander maintenant: achat kamagra – Kamagra Commander maintenant

  22. BernardGuelm

    Pharmacie en ligne livraison Europe: Livraison rapide – pharmacie en ligne france livraison belgique pharmafst.com

  23. Stevenchuff

    Rx Express Mexico: RxExpressMexico – mexico drug stores pharmacies

  24. Stevenchuff

    precription drugs from canada: ExpressRxCanada – precription drugs from canada

  25. Stevenchuff

    canadian pharmacy 365: Express Rx Canada – canadian pharmacy 1 internet online drugstore

  26. Stevenchuff

    reputable canadian pharmacy: Express Rx Canada – legal canadian pharmacy online

  27. MichaelLunny

    mexican online pharmacy [url=https://rxexpressmexico.com/#]Rx Express Mexico[/url] mexico drug stores pharmacies

  28. Stevenchuff

    cheapest online pharmacy india: Medicine From India – medicine courier from India to USA

  29. MichaelLunny

    MedicineFromIndia [url=https://medicinefromindia.com/#]indian pharmacy online shopping[/url] medicine courier from India to USA

  30. MichaelLunny

    Medicine From India [url=http://medicinefromindia.com/#]indian pharmacy[/url] indian pharmacy online

  31. Richarderacy

    вавада [url=http://vavadavhod.tech/#]вавада зеркало[/url] вавада казино

  32. BrianTok

    pin up casino: pin up – pin up

  33. BrianTok

    пинап казино: pin up вход – пин ап казино официальный сайт

  34. BrianTok

    пин ап казино официальный сайт: pin up вход – пинап казино

  35. BrianTok

    pin up azerbaycan: pin up az – pin-up casino giris

  36. BrianTok

    pin-up: pin up – pin-up casino giris

  37. KennethRhype

    вавада казино: vavada – вавада зеркало

  38. KennethRhype

    vavada: vavada – вавада зеркало

  39. KennethRhype

    пин ап зеркало: pin up вход – пин ап казино официальный сайт

  40. Thank you for your sharing. I am worried that I lack creative ideas. It is your article that makes me full of hope. Thank you. But, I have a question, can you help me?

  41. Albertoenawn

    purchase Modafinil without prescription: modafinil 2025 – modafinil legality

  42. 부산달리기

    Heya! I just wanted to ask if you ever have any trouble with hackers? My last blog (wordpress) was hacked and I ended up losing months of hard work due to no data backup. Do you have any methods to prevent hackers?

  43. Ralphbloff

    Эта статья для ознакомления предлагает читателям общее представление об актуальной теме. Мы стремимся представить ключевые факты и идеи, которые помогут читателям получить представление о предмете и решить, стоит ли углубляться в изучение.
    Подробнее можно узнать тут – https://medalkoblog.ru/

  44. ScottFes

    cialis 100mg: TadalAccess – tadalafil citrate liquid

  45. gamdom giriş

    This web page can be a walk-by means of for the entire data you needed about this and didn?t know who to ask. Glimpse right here, and also you?ll definitely discover it.

  46. Undeniably believe that which you said. Your favorite reason seemed to be on the net the simplest thing to be aware of. I say to you, I certainly get irked while people think about worries that they just do not know about. You managed to hit the nail upon the top and also defined out the whole thing without having side-effects , people could take a signal. Will probably be back to get more. Thanks

  47. RodneyHiz

    buy antibiotics for uti [url=https://biotpharm.shop/#]BiotPharm[/url] cheapest antibiotics

  48. RodneyHiz

    cheapest antibiotics [url=http://biotpharm.com/#]Biot Pharm[/url] over the counter antibiotics

  49. RodneyHiz

    Over the counter antibiotics for infection [url=https://biotpharm.com/#]BiotPharm[/url] cheapest antibiotics

  50. Josephded

    Over the counter antibiotics for infection: buy antibiotics online – best online doctor for antibiotics

  51. RodneyHiz

    п»їed pills online [url=http://eropharmfast.com/#]buy erectile dysfunction pills online[/url] Ero Pharm Fast

  52. RodneyHiz

    buy erectile dysfunction medication [url=https://eropharmfast.com/#]Ero Pharm Fast[/url] cost of ed meds

  53. 23win

    Howdy! This is kind of off topic but I need some guidance from an established blog. Is it very difficult to set up your own blog? I’m not very techincal but I can figure things out pretty fast. I’m thinking about making my own but I’m not sure where to begin. Do you have any ideas or suggestions? Cheers

  54. Learn more

    This site can be a stroll-by means of for all of the information you needed about this and didn?t know who to ask. Glimpse right here, and also you?ll positively discover it.

  55. 789club

    I will immediately grab your rss as I can’t find your e-mail subscription link or newsletter service. Do you’ve any? Kindly let me know in order that I could subscribe. Thanks.

  56. m88

    One more thing. I believe that there are many travel insurance web sites of respectable companies that let you enter your vacation details to get you the insurance quotes. You can also purchase the international holiday insurance policy on internet by using your current credit card. All you should do will be to enter your travel details and you can understand the plans side-by-side. Only find the program that suits your financial budget and needs after which use your bank credit card to buy the item. Travel insurance online is a good way to check for a respected company pertaining to international travel cover. Thanks for giving your ideas.

  57. SODO

    Great blog post. Things i would like to make contributions about is that computer memory has to be purchased but if your computer can’t cope with whatever you do along with it. One can deploy two good old ram boards having 1GB each, as an illustration, but not certainly one of 1GB and one of 2GB. One should always check the car maker’s documentation for one’s PC to be sure what type of ram is essential.

  58. professional

    I’m extremely impressed with your writing skills as well as with the layout on your blog. Is this a paid theme or did you modify it yourself? Anyway keep up the nice quality writing, it is rare to see a great blog like this one these days..

  59. I?m not sure where you are getting your info, but good topic. I needs to spend some time learning much more or understanding more. Thanks for great info I was looking for this info for my mission.

  60. buy wow boosting

    What an insightful and thoroughly-researched article! The author’s thoroughness and ability to present intricate ideas in a understandable manner is truly commendable. I’m extremely impressed by the breadth of knowledge showcased in this piece. Thank you, author, for providing your knowledge with us. This article has been a true revelation!

  61. BETFLIX249

    That is the appropriate weblog for anyone who wants to search out out about this topic. You realize a lot its almost onerous to argue with you (not that I really would need?HaHa). You undoubtedly put a new spin on a subject thats been written about for years. Nice stuff, just great!

  62. french cook

    What i don’t understood is actually how you are not actually much more well-liked than you might be now. You are so intelligent. You realize therefore significantly relating to this subject, made me personally consider it from a lot of varied angles. Its like women and men aren’t fascinated unless it?s one thing to accomplish with Lady gaga! Your own stuffs great. Always maintain it up!

  63. dmm9c

    where to buy generic clomiphene how can i get cheap clomiphene can i order clomiphene without a prescription order generic clomid prices order clomid prices how can i get generic clomiphene without dr prescription can i purchase generic clomiphene online

  64. Woah! I’m really enjoying the template/theme of this site. It’s simple, yet effective. A lot of times it’s challenging to get that “perfect balance” between usability and visual appearance. I must say you’ve done a amazing job with this. Additionally, the blog loads very fast for me on Chrome. Superb Blog!

  65. Hi there, just became alert to your blog through Google, and found that it’s really informative. I am gonna watch out for brussels. I will appreciate if you continue this in future. Numerous people will be benefited from your writing. Cheers!

  66. I don’t think the title of your article matches the content lol. Just kidding, mainly because I had some doubts after reading the article.

  67. Sparkle Guiski

    It’s really a cool and helpful piece of info. I am glad that you shared this helpful info with us. Please keep us informed like this. Thanks for sharing.

  68. nhà cái uy tín

    Hey there! This is my first comment here so I just wanted to give a quick shout out and tell you I genuinely enjoy reading your posts. Can you recommend any other blogs/websites/forums that cover the same subjects? Many thanks!

  69. M88

    I additionally believe that mesothelioma is a exceptional form of cancer malignancy that is typically found in those previously familiar with asbestos. Cancerous cells form within the mesothelium, which is a shielding lining that covers most of the body’s body organs. These cells commonly form while in the lining of your lungs, abdominal area, or the sac which actually encircles one’s heart. Thanks for revealing your ideas.

  70. nhà cái uy tín

    Thanks for your marvelous posting! I actually enjoyed reading it, you can be a great author.I will ensure that I bookmark your blog and may come back in the foreseeable future. I want to encourage you to ultimately continue your great work, have a nice afternoon!

  71. hypochlorous acid

    I have read a few good stuff here. Certainly worth bookmarking for revisiting. I surprise how so much effort you set to create any such excellent informative site.

  72. Nipple Cream

    I have fun with, result in I discovered exactly what I used to be taking a look for. You have ended my four day lengthy hunt! God Bless you man. Have a nice day. Bye

  73. campagnes

    Thank you for sharing excellent informations. Your web site is so cool. I am impressed by the details that you?ve on this blog. It reveals how nicely you perceive this subject. Bookmarked this website page, will come back for more articles. You, my friend, ROCK! I found simply the info I already searched all over the place and simply couldn’t come across. What a perfect web site.

  74. Hello, i feel that i saw you visited my blog thus i came to ?go back the favor?.I am trying to to find issues to improve my website!I suppose its good enough to use a few of your concepts!!

  75. Lazaroerure

    ¡Hola, apasionados del juego !
    Casino online extranjero con bonos sin condiciones – https://www.casinoextranjerosespana.es/# casino online extranjero
    ¡Que disfrutes de asombrosas botes espectaculares!

  76. DouglasDus

    ¡Saludos, estrategas del juego !
    Mejores casinos online extranjeros con ranking mensual – https://casinosextranjerosenespana.es/# mejores casinos online extranjeros
    ¡Que vivas increíbles jackpots extraordinarios!

  77. Williammom

    ¡Saludos, fanáticos del entretenimiento !
    casinosextranjero.es – variedad de juegos top – https://www.casinosextranjero.es/ п»їcasinos online extranjeros
    ¡Que vivas increíbles recompensas sorprendentes !

  78. public relations

    I adore your wordpress web template, wherever did you download it through?

  79. Keithplall

    ¡Hola, exploradores del destino !
    Mejores ruletas en casinos extranjeros recomendados – п»їhttps://casinoextranjero.es/ casinoextranjero.es
    ¡Que vivas logros excepcionales !

Leave a Reply