What is a mutual fund? and Types of mutual funds


 What is a mutual fund?

A mutual fund is an open-end professionally managed investment fund that pools money from numerous investors to buy protections. Mutual funds are "the biggest extent of the value of U.S. corporations."[1]:2 Mutual fund investors might be retail or institutional. The term is commonly utilized in the United States, Canada, and India, while comparative designs across the globe remember the SICAV for Europe ('investment company with variable capital) and open-ended investment company (OEIC) in the UK.

 

 Types of mutual funds

  • Money market mutual funds
  • Fixed-income mutual funds
  • Equity mutual funds
  • Balance funds
  • Index funds
  • Specialty funds or Thematic funds
  • Fund of funds
 
How to invest in mutual funds
You should pick the fitting mutual fund scheme dependent on investment destinations and hazard resistance if you are a novice in mutual funds. You may invest in mutual funds online or offline whenever it might suit you.
 
You may invest in mutual funds offline in a direct plan of a mutual fund scheme by visiting the part of the mutual fund house. You can likewise invest in a normal plan through a mutual fund merchant.
 
You may invest in direct plans of mutual funds online by visiting the site of a fund house. You may finish your KYC (Know Your Customer) consistence by submitting Aadhaar and PAN subtleties and afterward invest in your preferred mutual fund scheme. You could finish your KYC at a KRA (KYC Registration Agency) before investing in mutual funds.
 

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