Mutual funds are like an investment vehicle which comprises of pool of money from various investors to invest in different asset classes according to their common objectives. These were designed to provide professional money management services to retail clients which were accessible to only HNIs earlier. The money could be invested in a variety of instruments ranging from stocks, bonds, government securities, debentures, etc. The small ticket sized capital is collected together and managed by the professional called the fund manager. A fund manager is responsible to produce capital gains and income for the fund investors. There are two major ways a fund is operated: open-ended and close-ended. In open-ended, an investor can enter and exit at any point in time while in close-ended, an investor can invest only during the initial period and will be automatically redeemed on the maturity date.

Mutual fund investments give you the advantage of professional management, lower transaction costs, and diversification, liquidity and tax benefits.

Types of Mutual Fund

1. Equity
2. Hybrid
3. Debt
4. Solution oriented Schemes
5. Other Scheme