Mutual Fund
The world’s most successful investor Warren Buffet says –
Do not save what is left after spending but spend what is left after savings.
Investment is the most predominant feature for your bright future. No one can plan his future financial stability without the perfect and timely planning his investment in present. You can only dream your bright future but you may not convert your dreams true without perfect investment planning. Mutual Funds help you to plan your investment in most convenient way and according to your objectives. It’s a very emerging field to convert your dreams in reality.
How the mutual funds work?
The SEBI (Securities & Exchange Board of India) permits the registered financial intermediaries to pool the funds collectively from the intended investors with certain objective and invest this pooled fund of money in a way to achieve the intended goal.
Key Factors of Mutual Fund:
- Management of funds in a professional way– The Financial Intermediaries i.e. Asset management Companies (AMC) employs the professional expert who manages the collective funds in very systematic way that achieve the mutual objectives of the investors and the AMCs collectively.
- Risk Bifurcation– This mode of investment minimizes the individual risk of the investors and that helps to pool more and more fund to get invested. Moderate risk ensures the more investors to bring their fund for investments.
- Liquidity– There is no more complicated procedure to get invested in Mutual Funds. By simple application form one can start his investment in Mutual Funds. Also whenever he needs money can convert his investment in his bank account. This ease of operation encourages any age group person to initiate his investment in Mutual Fund.
- Simplicity-No complicated procedures, no complex concepts, no longer durations, this boosts the simplicity to Mutual Fund Investment. A person from any financial group or any age group (above 18 years) can opt this mode of investment only due to simplicity.