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Frequently Asked questions on mutual funds

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Mutual fund investments will give us the advantage of professional fund management and these risk-free investments. For every mutual fund scheme, the respective AMC’s (Asset management company) appoints an experienced fund manager to handle the entire funds and your investment portfolio on your behalf.

They are different types of mutual funds and below are the few most popular ones.

  1. Equity
  2. Debt
  3. Balanced
  4. Hybrid

There are several things to be considered and analyze as a first-time investor, Please find them, below.

  • Fix an investment goal
  • Choose the right fund type
  • Shortlist few and choose the best mutual fund
  • Diversify your portfolio
  • Try opting SIPs instead of lump-sum investments
  • Get the advice from a mutual fund expert, if required.

Read the article: Invest in Mutual Funds? – Guide to Stat

Below are the best feature and advantages of mutual funds

  • Convenience
  • Low initial investment
  • Tax-saving
  • Professional fund management

It is truly based on your requirements and investment goals. As a beginner pick a handful of schemes and analyze thoroughly and decide.

Mutual fund investments are subject to market risks. Please read the offer document carefully before investing

Anybody can invest in mutual funds if they have a Demat account. If you are a beginner and looking for a best Demat account use the below link to open the account within 30 minutes.

Open a Demat account with Zerodha: Click here 

You may have a look at Invest in Mutual Funds? – Guide to Start

Mutual funds are the safest investment options that pool money from several investors under a particular mutual fund scheme managed by an asset management company (AMC). The pooled money is then invested in securities like equity shares, bonds according to the scheme’s investment objective.

The fund manager, appointed by the AMC, manages the investment portfolio as per the market movements to create wealth for investors.

Returns will be depending on many factors like market situations, economy, portfolio growth, etc.

Note: Mutual fund investments are subject to market risks. Please read the offer document carefully before investing

Here are the major differences:

  1. Mutual funds schemes are handled by fund managers who actively analyze the markets and invest your money in various securities like equity, bonds, debt funds, and hybrid funds.
  2. The small case is purely a theme-based investment into a set of hand-picked stocks.
  3. The small case is not an AMC (asset management company) who manages assets but they partnered with various stockbrokers to help investors in theme-based investing.
  4. Mutual funds charge entry and exit load fees but small case charges one time fees while entering.
  5. In small cases, you will be having control over your funds wherein mutual funds the fund managers take charge.
  6. In small cases, you can create your own small case and the stock selection is completely in your hands.

I hope this helps!

Read the Disclaimer here

 

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Note :Mutual fund investments are subject to market risks. Please read the offer document carefully before investing