Mutual fund: A Risky investment scheme

Mutual fund: A Risky investment scheme

Mutual fund: A Risky investment scheme

Hey readers, Today's topic is very fascinating and especially for those people who are interested in online investment.
We're here going to discuss the Most
Risky Investment Fund Called Mutual fund.
So, In this article, we discuss all the information related to Mutual Funds.
So, let's find out what is the meaning of Mutual Fund?





Mutual funds are said to be the Professionally managed investment fund. These funds are mostly used or we can say purchased by Investors. These investors can be a Retailer or as well as Institution.

Now, let's take a look at the history of Mutual funds.

Mutual funds are the gift for the world which was a rise in the Dutch Republic.

In the year of 1772-1773, the Dutch Republic facing financial crisis in their country. This financial crisis gives rise to various kinds of financial problems in the dutch republic.

To face the problem of financial crisis their Ministers invent a Professionally managed investment fund called Mutual Fund. Mutual funds are also used in the United States in the year 1890. 






In India, people make the myths for Mutual Funds. People think that Mutual Funds mean Loss. This thinking is built among people because of some people who faced a huge amount of loss through mutual funds. 

Yes, it is true that mutual funds are not stable the rise and the decline rate of this find are totally depends on their Market Rate. If the market rate of this fund rises this will give you a good profit but if the rate decline then you have to face loss and that's why the companies who are selling Mutual funds to the public mentioned all the terms and conditions in the contract that was signed by the customer. 
Mutual fund is a great source of investment but you have to make patience. 
Many companies are selling Mutual funds. Here are the top 5 companies that sell Mutual Funds. 







1. SBI Nifty Index Fund.

2. Kotak corporate Bones Fund.

3. Tata Equity PE Fund.

4. Aditya Birla sun life small and Midcap fund. 

5. HDFC 

There are one of the top-rated and trusted companies for Mutual Funds. 


Now, let's see what are the advantages and disadvantages of Mutual Funds.





Advantages 

1. It contains Liquidity

In Mutual Funds, There are no barriers in the process of entry and exit in funds Scheme. In Mutual Fund you can sell your fund when you want and it becomes one of the best advantages of Mutual funds. 

2. Small investments 

Mutual funds can provide you a feature that you can invest your money in mutual funds at Smaller Price. A person is able to purchase a mutual fund if it has only 500 Rs in his pocket. This is also a very good advantage of Mutual Funds. It approaches the middle-class people to invest in mutual funds. 







Here, we see some advantages of mutual funds. Now, we are going to discuss the disadvantage of Mutual funds.


Disadvantages

1. Long-Term locks

Many mutual funds are work for a long time basis it means that your money will be locked till the maturity date. You can't use your money at any cost.

2. Managing Cost


In the policy of mutual funds, you have to give the amount to your fund manager and also give salary to the market analyzer. This will cost you more if you have many mutual fund policies.


So, here is all the information about mutual funds. 
Hope you like.


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