When it comes to investing, many options are available to an investor, depending upon their needs, risk appetite and time horizon.
Widely known investing options that are available include: investing in bank fixed deposits, post office deposits, provident funds, bonds issued by corporates and governments, equity and preference shares, and so on. But there are many more options like investing through a Mutual Fund (MF), chit fund, AIS (Alternative Investment Services), PMS (Portfolio Management Services), real estate, precious metals like gold etc., etc.
What Is a Mutual Fund? Definition
A MF is a collective investment vehicle where money is pooled from many investors in a single basket and the entire basket is invested by the investment company ("Asset Management Company" (AMC)) in a securities market. Profit and losses earned are reflected in the NAV (Net Asset Value).
Even if there are many important , a statutory warning like 'Mutual funds are subject to market risk. Plea (...) Read more? Sign up for free