Mutual Fund

What is Mutual Funds?

Mutual funds help investors diversify various risks by investing in a diversified basket of stocks across different sectors. Hence mutual fund risk is much lower than individual stocks.

Among the reasons why an individual may choose to buy mutual funds instead of individual stocks are diversification, convenience, and lower costs. Actively managed funds require a portfolio manager who constantly updates their holdings, while a passively managed fund's portfolio is built on a buy-and-hold strategy.

Features of Mutual Funds

• Diversification in different asset classes
• Retail participation, Minimum investment Rs.5000 and above
• Disciplined investing through Systematic Investment Plan (SIP)
• Regular Income through Systematic Withdrawal Plan (SWP)

Benefits of Mutual Funds

• Long Term Wealth Creation
• Investment opportunity available for different time frames
• Helps to build an emergency fund
• Managed by professional fund manager