What is MUTUAL FUND INVESTMENTS?
Mutual funds are ideal for investors who want to invest in various kinds of schemes with different investment objectives but do not have sufficient time and expertise to pick winning stocks. Mutual fund investments give you the advantage of professional management, lower transaction costs, and diversification, liquidity and tax benefits.
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Frequently Asked Questions
we have answersWhat is mutual fund investment?
A mutual fund investment is a kind of investment option where the money from a group of investors is pooled together and invested in different asset classes. Depending on the assets in the portfolio, there are different types of mutual funds, such as equity mutual funds, debt mutual funds, hybrid funds and tax saver funds. With Motilal Oswal, you can invest a lump sum amount in mutual funds, or you could start an SIP.
What are the different types of mutual funds in India?
Based on the kind of assets and the asset class that they invest in, there are different types of mutual funds in India. Among these, the most common are equity funds, debt funds, hybrid funds and tax saver funds. Equity funds invest predominantly in the equity market, while debt funds have portfolios made up mostly of debt instruments. Hybrid funds contain a balanced mix of both equity and debt, while tax saver funds come with additional tax benefits. Other than these there are other funds like: 1. Money market funds 2. Index funds 3. Balanced funds 4. Income funds 5. Fund of funds 6. Specialty funds
How do mutual funds work?
Mutual funds pool money from investors who have a similar investment outlook. This money is then invested in different asset classes, depending on what the investment objective of the fund is. Some common asset classes that mutual funds invest in include stocks, bonds, money market instruments, and even gold.
What are the benefits of investing in mutual funds?
If you’re unsure about making mutual funds a part of your portfolio, you’ll be glad to note that there are many mutual fund investment benefits to look forward to. You have a range of investment options to choose from, meaning that you can create a portfolio that aligns with your risk profile. Also, you can start investing even with small amounts of money, thanks to SIPs. In addition to this, mutual funds also give you the advantage of market-linked returns and, in some cases, tax benefits.
What is the average return on mutual funds?
There is no magic number that can tell you the exact mutual fund returns expected from your investments. However, if you are investing in mutual funds, do keep in mind that these are essentially medium to long term investments. So, over the short term, the returns may be more volatile and unpredictable. But over the long term, mutual funds tend to outperform other investment options, broadly speaking.