There was a time in India, when mutual funds weren’t looked at with any great level of trust, especially equity mutual funds. However, recent years have seen a dramatic change in the outlook of the Indian audience, due to the automatic diversification and huge returns such investments offer. The benefits of liquidity, professional management and customization further add to their desirability.
If you are a novice at such investment, here’s a quick guide to familiarise you with this financial instrument.
A Brief Introduction to Mutual Funds
Mutual funds are basically a means of investment, operated by financial institutions. The company collects money from several investors and pools the funds together. The accumulated money is then invested in one large pot, which professional managers calls assets. Stocks and bonds are the most common assets they invest in. When money is invested in assets, the investor is said to have bought … Read more
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