Whenever we hear the term Mutual Fund, we associate it with risk or market volatility. But it is proven that Mutual Fund is the smartest investment for every investor. Mutual Fund is a better investment avenue for the investors who have less or absolutely no knowledge about stock market.
Mutual Fund is a professionally managed investment scheme which brings together a group of people and invests their money in stocks, bonds and other securities. Mutual Fund is generally run by an Asset Management Company (AMC). Mutual Fund is regulated by SEBI so as to safeguard the interest of the investors. All the Mutual Fund Schemes have to be registered with SEBI.
The main advantage of Mutual Fund is that it is handled by professionals. The professional manager buys and sells securities on behalf of the investor. Mutual Fund gives small investors access to professionally managed securities like shares, bonds,etc which is one of the biggest advantage of Mutual Fund.
Various types of Mutual Fund are as follows-
- Equity Mutual Funds
- Debt Mutual Funds
- Balanced Mutual Funds
- Gilt Mutual Funds.