Mutual Funds

A Mutual Fund is a financial arrangement in which the savings of multiple investors with a shared financial objective are combined and invested in capital market instruments such as shares, debentures, and other securities. The profits earned from these investments and the increase in the value of the assets are distributed among the unitholders based on the number of units they hold. This makes Mutual Funds an ideal investment option for individuals as they provide the opportunity to invest in a well-diversified portfolio of securities managed by professionals, all at a comparatively low cost.

Advantages of Investing in a Mutual Fund

A portfolio that is diversified
Ability to be flexible
Liquidity
Convenient
Low Costs
Professional Management
Transparency
Well regulated
Effortless goal achievement
Tax benefits on investment as well as maturity

Types of Mutual Fund Schemes

There is a diverse range of Mutual Fund Schemes available to meet the requirements of investors based on their financial circumstances, risk tolerance, and desired returns. The following table provides a summary of the different types of schemes that exist within the industry.