What is Mutual Fund :- All of you must have seen the advertisement of Mutual Funds in TV which comes with the tagline Mutual Fund is right. Seeing it, some questions may arise in your mind that what are mutual funds (what is the mutual fund )? How to invest in it? How it works, its advantages, disadvantages and how we can earn money from it sitting at home. So today we will answer all these questions of yours.
Many people have this misconception that investing in Mutual Funds requires a lot of money, but it is absolutely wrong that you can earn money by investing even 500 Rupees. Another misconception that people have about mutual funds is that both the share market and mutual funds are the same, this is also not true.
What is Mutual Fund:
As the name suggests, Mutual Funds are a fund in which the money of many people is invested. If explained in easy language, only the fund made from the money of many people is called Mutual Fund. Just like you will invest money, similarly other people have also invested money so that they can earn profit. This money is invested in different departments in the market so that maximum profit can be earned.
Even for those who do not have much knowledge about the market, investing in mutual funds is easy and less risky. Mutual investment in the Fund are not limited to empty the stock market but also in gold, silver, bonds, stocks or other government security Money Invest are made. The advantage of investing money in different departments is that the risk is reduced a lot and the return is good.
Is it safe to invest in mutual funds? Mutual Fund in India
No one wants to risk the money earned by sweating their blood. In India, where people’s thinking is to save more and more money and invest safely. In such a situation, the question must also come to your mind that is it safe to invest money in Mutual Fund? Friends, there are many types of mutual funds. The risk is also slightly higher in the funds that give more returns, while there are some such funds in which the returns are not that high but they are more safe. You will know in detail about all these types of funds later.
Mutual funds in India work under the supervision of SEBI (The Securities and Exchange Board of India). SEBI is a government organization that was formed in 1988 and mutual funds work only on the basis of the rules made by it, since its supervision and law comes under the government body SEBI, therefore no mutual fund scheme or company can do its arbitrariness Huh. That’s why investing in mutual funds is called a safe investment as compared to many other investments.
How to invest money in Mutual Funds?
There are 2 ways to invest money in Mutual Funds, first you can invest directly without taking anyone in the middle and in the second way you can invest through professional fund managers. These fund managers are experts in this task and have a good knowledge of mutual funds and the market. In simple language, he puts your money in such a place from where you can get maximum benefit.
• By Investing money directly in Mutual Fund, you will be able to invest in Direct Plan of Mutual Fund Scheme. You can invest money by visiting the official website of Mutual Fund or by visiting its authorized branch. The advantage of Direct Investment is that you do not have to pay any commission in this. The disadvantages of this method are also many, One, you have to do all the formalities yourself and after doing research, you have to take care of everything yourself. In which you will take a lot of time and if you do not have complete information about the market and scheme, then there is a lot of risk of loss.
• If you invest through fund managers then they will look after all the document formalities and other maintenance work. When you Invest with an advisor le fund manager in the middle, then you will invest money in the regular plan scheme.
• Know: Advantages and disadvantages of investing in Mutual
Funds how to earn money from share market
Types of Mutual Funds: Type of Mutual Funds in English
SEBI LE. The Securities and Exchange Board of India has divided mutuali funds into 4 categories which are as follows:
1. Equity Mutual Fund Scheme
The money invested in these schemes goes directly to the shares. In these schemes, we can earn a lot of profit in a short period of time, but in the short term, there is also a lot of risk in it. The profit or loss depends on how much the stock market fluctuates. Investors should invest in these schemes for a long time. By investing for at least 5-10 years, the chances af good returns are high.
2. Dept Mutual Fund Scheme
investing money in this scheme is less risky. If you want to make short
term investments then this scheme can be right for you. Since the money in these schemes is invested in government bonds and other safe places. If you want to invest for less than 5 years then this scheme is right for you However, the profit in this is not that much.
3. Solution Oriented Scheme
Solution oriented plans come with special features like child’s education and retirement. These schemes have a fixed tenure of 5 years.
4. Hybrid Mutual Fund Scheme
In this mutual fund category, both equity and debt schemes are invested in a mix. The advantage in this is that profit and risk are balanced in this
Best Mutual Funds in India: Top Mutual Funds in Hindi
If you have thought of Investing in Mutual Funds, then the first question that comes to your mind is which is the highest paying mutual fund Investing in which Mutual Funds is the most likely to get good returns. You can see the list of top 10 most profitable company mutual funds in India at is time.
1. SBI Mutual Fund
2. ICICI Prudential Mutual Fund
3. Parag Parikh Long Term Equity Fund
4. Reliance Mutual Fund
5. Quant Active Fund
6. DSP Midcap Fund
7. Mirae Asset Tax Saver Fund
8. Tata Digital India Fund
9. Aditya Birla Sun Life
10. Quant Mid Cap Fund