infobust

You are here that means one thing is sure -you have made up your mind to invest in mutual funds , but in which type of funds to invest is still a dilemma. The market is flooded with all types of small cap, mid cap , equity, bond and so on funds and that makes it difficult for a newbie to decide where to invest. So lets try to understand what the types of mutual funds. 1. Equity funds These funds are invested in shares of companies with the primary objective of higher returns. But since these are invested in shares so the risk attached is also higher. Equity funds coulde be regrouped into following types : Small cap : the funds which are invested in shares of small size companies. These companies could be some start ups or new in industries having high gtowth potential. So the gains and risks both are higb in these funds. Mid cap : these funds are invested in mid size companies which have presence of over a satisfactory period on market. Large size : these funds are inves...

Today the world is buzzing with a new investment idea - mutual funds! The ads which lure us to invest in these funds but also gives the mandatory warning of SEBI in the end serves to do two things at the same time- attract us to invest in hopes of higher returns , but also makes us skeptical if market goes wayward. So what to do? How to know whats right. Let us try to help. So first things first- what is a mutual fund. Mutual funds could be understood as an investment vehicle which pools money from a large number of investors who share a common investment objective. And these investments are managed by professional investors who invest in different types of securities ranging from govt bonds to equities, shares, money market instruments an so on. The investors get returns in proportion of their investments made . These returns are calculated from the schemes net asset value or NAV. Now let's look into the pros and cons of mutual funds. Pros  : No expertise needed :...