Mutual funds fall under a collective investment scheme. Here, the participants buy stocks, bonds, short-term money market instruments collectively. It is often said that mutual funds are a way through into the heavy duty money market. Especially, for someone who does not have the experience or knowledge about market investments mutual funds can be very useful. All that a person has to do is to choose the right mutual fund investment and then watch it grow.
Mutual funds help investor’s in many ways. Firstly, the investors can hire a professional investment manager which can help them in managing their portfolio better and providing better returns. Secondly, they benefit from sharing of costs; hence, investment per person goes down. Thirdly, it helps sharing of risks because it diversifies more than what would have been feasible for most individual investors. Fourthly, mutual funds allow convert your money into cash at any given point of time. Hence, liquidity is another benefit.
Money can be made through mutual funds in three main ways. The first is through the income earned from – dividends (in stocks) and through interest (in bonds). Secondly, if a fund sells securities which have increased over time, then this gain is also distributed among the fund holders. Also, when fund holdings increase in size but are not sold by the fund manager, then prices of the funds share increase. So, the third way one can make profit from mutual funds is by selling their mutual fund shares.
If you are looking for Investing in Mutual funds, Siddhi Associates offers you a variety of choices. Just browse through and compare various types of mutual funds. Get in touch with us to learn more!
Gold Funds - Safe Simple & Most Affordable way to invest in 99.5% pure GOLD
Equity Funds - Enjoy investment in Stock market, Get the expertise of the Best Equity Fund Managers
Debt Funds - Safe and secure investment in Mutual Funds, Best Fund Managers managing your investments
Systematic Investment Plan - Save monthly and maximize your returns, Make saving a habit with SIP
Since a single policy cannot meet all the insurance objectives, one should have a portfolio of policies covering all the needs.