Before investing in mutual funds one should atleast know about Mutual funds so that
no one can fool us, now let’s know about #MUTUAL FUNDS
The small investors who generally lack expertise to invest on their own in the securities
market prefer some kind of collective investment vehicle like MUTUAL FUNDS, which
pool their marginal resources, invest in securities and distribute the returns there from
among them on cooperative principals.
Mutual Funds means a fund established in the form of a trust to raise money through
the sale of units to the public or section of the public under one or more schemes for
investing in the securities including money market instruments or gold related
After knowing about mutual funds now let us know the types of mutual funds in which
we can invest
GROWTH ORIENTED MUTUAL FUNDS:
These funds generate income in two ways namely
1 high source of income by way of dividend and
2 these funds with a view to satisfying the growth needs of investors, primarily
concentrates on the low risk and high yielding spectrum of equity scrips of the
MONEY MARKET MUTUAL FUNDS
These funds invest in short term debt securities in the money market like certificates of
deposits, commercial papers, government treasury bills etc. These funds normally get a
higher yield on such short term investments than an individual investor.
INCOME ORIENTED MUTUAL FUNDS
The primary object of this funds is to give fixed income to investors. The main securities
in which investments are made by such funds are the fixed income yielding ones like
HYBRID MUTUAL FUNDS
Hybrid funds invest in both debt and equity instruments to fulfill both the investment
needs of prospective investors namely fixed income as well as growth orientation. These
funds utilize the concept of balanced investment management.
TAX SAVING MUTUL FUNDS (ELSS)
These mutual funds offer tax rebate to the investors under tax laws as prescribed from
time to time. This is made possible because the government offers tax incentives for
investment in specified avenues like ELSS and NPS.
REAL ESTATE FUNDS
Real estate funds invest in securities of companies from the real estate sector. If the
sector grows then the fund makes good returns. Usually, investors without sufficient
funds to purchase a property opt for real estate mutual funds.These funds are not
recommended to short term investors.
In these funds assets management is engaged in speculations trading means buying
shares whose prices are likely to rise and selling shares whose prices are likely to dip.
GOLD EXCHANGE TRADED FUNDS
Gold exchange traded fund (GETF) scheme shall mean a mutual fund scheme that
invests primarily in gold and gold related instruments which is specified by SEBI from
time to time.
So after getting the information mentioned above we are now well versed with the
concept of mutual funds and now we can relate this knowledge whenever we will plan to
invest in mutual funds and talk with our mutual fund advisor or related professionals.
Before doing anything we should always have some basic knowledge about that thing
and if you are planning for investing in mutual funds then after reading this your job is
Founder & CEO| Fox Investor – Financial Blog Portal & A.V.A. Taxway Associates- Corporate & Tax Law Firm
Dr. Vibhor S Agarwal has a Ph.D. in IPR, start-ups, and corporate law, as well as an MBA in finance from NMIMS Mumbai, and achieved numerous certifications in corporate law. He is a practicing corporate lawyer and the founder of two business verticals. He has advised over 2000 businesses, 5000 students, and 400 new start-ups all over India and other countries like Dubai, London, the USA, and Qatar. Dr. Viibhor Agarwal assists people with business expansion and branding, regardless of size, as well as business setup, financial literacy, start-up guidance, licensing, tax planning, and other legal compliance issues. Dr. Viibhor Agarwal’s goal is to provide complete financial and business literacy to all businessmen who want to start new businesses and grow existing businesses and to those students who want to open their start-ups. In each video, Dr. Viibhor Agarwal not only explains the method of the solution but also advises subscribers on practical tips learned from and faced by clients handled by Dr. Viibhor Agarwal daily. This blog portal provides you with an easy and clear solution to your business problem, allowing you to take your business to the next level.