Mutual Funds
“Mutual fund is simply investing together by a group of people who have similar investment goals”
Knowledge Wheel
Corpus
When individual investors invest together for a common goal forming a large amount of money known as corpus.
Expense Ratio
Expense ratio is the expense incurred by the asset management company to run, manage and grow the fund.
Mutual Funds Types
Funds are built with different goals satisfying customers with unique needs. Such categorisations are mutual fund types.
Mutual Fund Calculator
Mutual fund calculator forecast the performance of the fund. It requires expected returns and investment amount to perform the calculation.
Exit Load
In some funds the investor has to pay certain charges if he discontinues the plan. That charge is known as exit load.
SIP
Systematic investment plan is the monthly payment by the investor which is to be invested in a particular mutual fund.
Table of Contents
Mutual Fund
Mutual funds are investments vehicles through which the fund is collected from different individuals and invested all together. Asset management companies does the same on the behalf of the investors.
They appoint a fund manager who is responsible to take return from the total money invested.
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Types of Mutual Fund
As per the needs of the mutual fund the asset management companies have customised their policy. The mutual are categories to thirty different funds which satisfies different needs of the customers.
Equity Mutual Funds
Equity mutual funds invest in capital of a companies which in turn receives profit on the investment made. The investment holds a medium amount of risk and probability of huge returns also.
Debt Mutual Funds
Debt mutual funds are loans given to government and other private organisations. They come with a fixed amount of return. In this type of mutual fund, the returns are fixed hence the investor doesn’t have to worry about the loss of amount invested. These funds only have to risk of volatility in the interest rate but making the investment amount secured.
Hybrid Mutual Funds
Hybrid mutual funds are funds that consist of both equity and debt funds. They concentrate on the investors who have unique needs towards investments. These investments under this fund consist of both equity and debt. The ratio depends on the needs of the investors. The risk of the fund depends upon the ratio chosen by the investor before choosing the fund.
