Must Know Basics of Mutual Funds
" Mutual funds" are a popular investment, especially among Youngsters, and understanding the basics is essential for anyone looking to invest in them. Here are three key points to help you grasp the " Basics of Mutual Funds" 1) Pooling of Funds : Mutual funds pool money from multiple investors to create a diversified portfolio of stocks, bonds, or other securities. When you invest in a mutual fund, you're essentially buying shares of the fund, which represent your ownership in the underlying assets. This pooling of funds allows investors to access a diversified portfolio even with relatively small amounts of money. You can start a SIP with as small as Rs 100 per month so anybody can take advantage of this instrument. 2)Professional Management : One of the main advantages of mutual funds is that they are professionally managed by fund managers or investment teams. These experts make investment decisions on behalf of the fund, including buying and selling secur