Mutual Fund
Mutual Funds are one of the best types of investment instruments.
You can invest in a wide variety of mutual funds based on your specific financial needs and risk appetite.
Several available mutual funds focus on blue-chip stocks, stocks forming part of NIFTY index or BSE Sensex, IT stocks,
bonds or a mix of stocks and bonds, short-term money market instruments and government securities.
Each Mutual Fund scheme has a clear objective.
A team of financial experts works with specialists in investment research to manage a scheme.
These experts conduct a thorough review of companies, their products/services and performance over a period of time.
They then pick the investment option most suitable for a particular scheme and an investor's goals.
In order to minimise the cyclical effect, these experts choose companies from a wide spectrum of sectors.
Due to the diversification and professional management inherent in a well-managed fund, an individual investor can earn a greater return on investment
than investing in individual stocks and bonds.
Your financial planner's guidance can direct your regular investment to the right mutual fund in the form of a systematic investment plan (SIP).
The SIP is a longer term horizon plan that will earn you a great return regardless of the cyclical nature of the markets.
The Net Asset Value (NAV) of a fund is calculated on the total amount of the Mutual Funds in India, by dividing it with the number of units issued
and outstanding units on daily basis. You earn more units as the NAV is lesser when the market is down, and vice versa.
|
