Mutual Fund

A certain group of people investing the amount is known as a mutual fund. It is a trust that collects money from the number of investors who share a common investment objective. it invests the money in equities, bonds, money market instruments and/or other securities the first introduction of a mutual fund in India occurred in 1963 the Government of India launched Unit Trust of India (UTI).UTI enjoyed a monopoly in the Indian mutual fund market until 1987, when a host of other government-controlled Indian financial companies established their own funds, including State Bank of India, Canara Bank and by Punjab National Bank.  Mutual funds are generally placed into one of four primary categories equity, fixed income, money market, or hybrid (balanced). Equity funds are stocks or equivalents, while fixed income mutual funds are government treasuries or corporate bonds.

Equity funds are stocks or equivalents, while fixed income mutual funds are government treasuries or corporate bonds. Money market funds are short-term investments in high-quality debt instruments

Equity Funds:- Stock funds, also called equity funds (investing in publicly traded as opposed to privately-owned companies), are the most volatile of the three, with their value sometimes rising and falling sharply over a short period.stocks have performed better over the long term than other types of investments. That’s because stocks are traded on the expectation that a company’s future results will include expanded market share, greater revenue, and higher profits

Growth funds, which offer the potential for large capital appreciation but may not pay a regular dividend

Fixed Incomes Fund:- Bond funds, also known as fixed income, invest in corporate and government debt with the purpose of providing income through dividend payments. Bond funds are often included in a portfolio to boost an investor’s total return, by providing steady income when stock funds lose value. stock funds can be organized by sector, so too can bond funds can be categorized. They can range in risk from low, The possibility that a bond will be paid off early. When that happens to bond funds there is the chance the manager may not be able to reinvest the proceeds in something else that pays as high a return.

Money Market Fund:- Money market funds try to keep their “net asset value” (NAV)—which represents the value of one share in a fund—at a constant $1 per share. But the NAV may fall below $1 if the fund’s investments perform poorly. have relatively low risks, compared with other mutual funds and most other investments. By law, they are limited to investing only in specific high-quality, short-term investments issued by the U.S. government, U.S. corporations, and state and local governments.

Hybrid funds:-This type of fund invests in both equity and bonds. The attractiveness of a hybrid fund is in the diversification of the portfolio, and the ability of the funds to allocate assets in different manners throughout the investor’s ownership of the fund. Both equity and bond funds can specialize in either domestic (US) or international holdings. Global diversification can be as, if not more, important than diversification between equity, fixed income and money markets.

 

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