Mutual Funds
A mutual fund is a company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt. The combined holdings of the mutual fund are known as its portfolio.
About
Mutual Funds
Saving for a financial future includes investing. Apart from Bank Fixed Deposits and Equities, Mutual Funds are considered to be one of the sought-after investment options. Before investing, understanding relevant performance factors will help you select the best Mutual Funds suited to you.
- Equities or stocks of various market capitalisation: They invest in shares of listed companies. Wealth creation is the primary objective of these funds. Top performing Mutual Funds that invest in equity have a higher probability to generate high returns especially for long-term investments.
- Income Bonds or Fixed Income Funds: They are suitable for income generation and are relatively safer investment tools. Debt market instruments like Bonds, Non-Convertible Debentures, Commercial Papers, Gold, or other asset classes.
- Tax Savings: Equity Linked Savings Scheme invests in equity and equity-related securities. These types of Mutual Funds scheme have a lock-in period of 3 years and offer tax exemption under section 80C.