Learn about the types of investment before investing in the Mutual Fund
Mutual Funds are a way of investing in which you can expect good earnings if you invest money with little sense. You can also take advantage of Tax Saving. But, since it is directly related to the investment in the share market, there is also some risk risk in this way of earning. You can invest directly from a mutual fund website for investing in it. Along with this, you can also hire a Mutual Fund Advisor if you wish.
(Mutual Fund) is a type of collective investment. Investors' groups jointly invest in investments, investments or securities on short-term investments or other securities. A fund manager is a mutual fund that determines fund investments as well as accounts for profit loss. Any benefit or loss that is incurred in it is distributed among the investors.
4 types of mutual funds
1. (Equity Mutual Fund)
2. (Debt Mutual Fund)
3. (Hybrid Mutual Fund)
4. (Solution Oriented Mutual Fund )
Equity mutual fund
These schemes invest investors' money directly in the investment shares. In the short term, these schemes can be risky, but in the long run, it helps you earn a better return. Your return from investing in this type of Mutual Fund scheme depends on how the stock is performing.
Inform that investors who have a financial goal to complete after 10 years, they can invest in such a Mutual Fund scheme. There are also 10 different types of Equity Equity Mutual Fund scheme.
Debt mutual fund
These Mutual Fund schemes invest in debt securities. Through this, investors can invest in short-term financial goals to accomplish this. It is okay to invest in these for less than five years. These Mutual Fund schemes are less risky than shares and give better returns than fixed deposits of the bank.
Hybrid mutual fund scheme
Explain that these Mutual Fund schemes invest both in equities and debt. It is important for investors to take care of their ability to take risks while choosing these schemes. Hybrid Mutual Fund Scheme is divided into six categories.
Solution Oriented Scheme
Solution Oriented Mutual Fund Scheme is based on a specific goal or solution. These can be goals such as a retirement scheme or child education. In these schemes, you have to invest for a minimum of five years.