Mutual Funds– A lot more to understand
Mutual funds are even now is a misunderstood product among the rural public because the lack of good advisors and the public misunderstand with the Unit Linked Insurance Products. A mutual fund is a collective investment vehicle where the resources of a number of unit holders are pooled and invested as per the objectives of the Scheme. A Mutual fund is set up as a Trust which supervises the function of an Asset Management Company which manages the investments collected in mutual fund schemes. It includes Professional Management, Diversification, Regulated operation by SEBI, Higher return, Transparency, Liquidity, Tax benefits, Flexibility etc. It is a very transparent medium among all the investment vehicles and aim to the benefit of Unit holders as it is set up as a Mutual Fund Trust.
Actually. Mutual fund is not only for equity class, but also it is suitable for all investors according to their time frame taking into account of debt instruments…We need to transit from Fixed Deposit from banks to more profitable asset classes…