What is a Mutual Fund?
A mutual fund is a professionally managed investment vehicle that pools money from many investors to purchase a diversified basket of securities like stocks, bonds, and gold.
Key Benefit: It allows individual investors access to professionally managed portfolios that would otherwise be difficult to build on an individual basis.
Why Choose Mutual Funds?
- Professional Management: Expert fund managers research and manage your investments.
- Diversification: Spreading risk across multiple sectors and companies.
- Affordability: Start with as little as ₹500 via SIP.
- Liquidity: Most funds allow you to withdraw money on any business day.
Common Types of Mutual Funds
| Fund Type |
Investment Focus |
Risk Level |
| Equity Funds | Stocks/Shares | High |
| Debt Funds | Bonds/Fixed Income | Low to Moderate |
| Hybrid Funds | Mix of Equity & Debt | Moderate |