Online Mutual Fund Calculator
Investing in a systematic manner with mutual fund is a good approach to maximize wealth.
You must have heard a line “Mutual Funds Sahi Hai”. But are they really good for you. Let’s find it out. So, first of all you should know what is a mutual fund?
Mutual funds are the professionally managed funds or portfolios which pools money from various investors and invest in equity shares and/or debt as per the pre defined investment objective. Each and every mutual fund scheme has to mention investment objectives in the offer document. The scheme investment objective specifies where the pooled assets will be invested by the fund manager.
One must read the offer documents (SID, SAI &KIM) carefully as these will provide all the information regarding the schemes past performance, fund house details etc.
What are the Benefits of Investing in Mutual Funds ?
- Diversification of risk
- Small investment
- Professional management
- Various categories like equity, debt, hybrid and so on
- Various modes of making investment like SIP, lump sum , STP, etc.
Who Should Invest in Mutual Funds ?
Every individual has some financial goals which he wants to achieve and in order to achieve those goals one has to invest somewhere. These financial goals could be your children’s marriage, their education or your own retirement. Mutual funds provide a means of investing efficiently and effectively.
All the financial goals of an individual can be easily achieved through mutual funds. All one has to do, is to plan beforehand and invest the required amount for achieving that particular goal.
Not really! Mutual funds offer a variety of categories to its investors ranging from pure equity to pure debt instruments. Though it not incorrect to say that equity as an asset class is risky, however, one must not forget that the funds are managed by experts and equity is the only asset class which can provide superior returns over a long period.
What is the Difference Between Debt and Equity Schemes?
Debt schemes generally invest in corporate bonds, commercial papers, government securities and various other money market instruments while equity schemes invest in stocks of the listed companies.
One may go for any of these categories depending on their risk appetite, liquidity requirements and time horizon.