Are you planning to invest in mutual funds? Then this article is for you. Whenever we think of investing, the first thought that comes to mind is gold or bank FD. These are considered traditional and safe means of investment. There is less risk of losing money in it, although the returns on it are also quite limited. Apart from this, there are many investment options where common people can get good returns in a short time, such as investing in the stock market, bonds, or debt.
These are risky investments, and due to a lack of correct information, investors often have to suffer heavy losses in them. In such a situation, if you also want to invest in traditional options of investment such as gold, real estate, bank FD in place of new options like stock market, etc. and you do not have the right information, then mutual funds can be the best investment options for you.
Mutual Funds
Mutual funds are a means of investment where your investment is managed by an experienced expert. It is a kind of collective investment instrument where many investors invest money together for a goal and handle this investment by expert fund managers. This makes your investment less risky.
How Mutual Funds Work
Mutual funds are a kind of pooled investment. Think of it as if many people mix their money and invest in different types of assets. The returns from these investments are distributed among investors in proportion to their investment amount. Kumar compared mutual funds to bus travel, saying, “You can get on or off at any stop, but you have to pay the fare for the distance that you have traveled.”
The fund manager takes care of your investment
Your investment in mutual funds is supervised by a fund manager. “A fund manager is like the captain of a ship. They guide investments based on the market situation and the objectives of the fund.”
Desclimer: For any financial investment anywhere on your own responsibility, Times Bull will not be responsible for it.
