MUTUAL FUND

 Mutual fund is a great way for saving money

A mutual fund is an investment option where money from many people is collected and managed by a fund manager .this money is invest in different financial assets.

Stocks(shares)

Bonds(debates)

Gold

Others securities 

If you invest money in a mutual fund a fund manager investing your money in various assets like monthly SIP or one time amount (lumpsum)


Key Terms


Key Terms

     . NAV(Net Asset Value) : The price of one unit of mutual fund.

    . SIP(Systematic Investment Plan): Investing a fixed amount every month.

   . Lumpsum: Investing a big amount at once .

   . ELSS(Equity Linked Savings Scheme): Tax saving mutual fund under section 80C.

Benefits of Mutual Funds 

. Low starting amount ( even ₹100 or ₹500)

. Managed by professionals

. Diversification ( your money goes to money companies, reducing risk)

.  Easy to start ,monitor,and withdraw


Mutual fund vs Stocks are Better

Mutual fund 

     Its a beginner Or  busy persons ,Prefer lower risk with stable returns, you want to invest money (SIP), you need tax saving (via ELSS).

Stocks 

     You have a good knowledge of the stock market and take more control of your investments. You are aiming for high return and accept high risk. You can actively track and manage your portfolio.


Which is Better ?

If you are a beginner or working professional, mutual fund are better due to lower risk , professional management,and ease of use.

If you are experienced ,confident in market trends and can handle ups and downs  stocks can offer higher returns.


Choose the right type of mutual fund 

 If you are a beginner with a small amount consider these : 

1 ELSS (for tax saving)

2 Index funds (low cost)

3 Balanced /Hybrid funds (low to medium risk)

4 SIP options with minimum ₹ 100-₹500


Popular funds that allow ₹100-₹300 SIP

Nippon India Mutual Fund 

UTI Mutual Fund

SBI Mutual Fund 

HDFC Mutual Fund 

Complete KYC (Know Your Customer)

You must be KYC compliant to invest.You can complete KYC online by uploading:

PAN card

Aadhaar card 

Photo

Signature 


Most platforms offer paperless KYC

Choose a platform to Invest You can invest through:

Direct mutual fund apps like Growth,Zerodha coin,Paytm Money,ET money 

AMC website like sbi mutual fund,HDFC mutual fund.

Banks or advisors may charge extra.






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