A mutual fund is a trust; it is a unique way to satisfy all the needs of the person who invests in it, by allowing them to invest the money they have kept in the trust, in various schemes. The securities and investments made via this trust could include shares, debentures, bonds or money market investments.
There are two major ways by which your faith in this fund add to your investment; the first is via capital appreciation- the second is through the income that you earn through sale. Then however, the question that you as the reader are probably raising would no doubt be: when and how should one invest in a mutual fund scheme anyway?
Well, for beginners, there is the fact that mutual fund schemes have different structures and these structured forms of mutual fund schemes allow you to invest money during different times as it would suit you.
An open ended mutual fund scheme is one that is ready for subscription at all times; if you have money to invest later on in the year, then that would also work because you can simply go and deposit the money in the fund scheme at anytime of the year. A close ended mutual fund scheme on the other hand can cause a slight bit of trouble if you have ready money to invest only in say the summer, but the subscription offer opens in the fall or late autumn.
So far as more on the kind of mutual schemes you can invest in and knowing when you can invest in them, there are various kinds; Equity funds for instance provide capital appreciation and are therefore perfect if you would like to be able to invest money in a business etc later on. Growth schemes on the other hand may be great if you are someone who happens to be looking at a long term plan; growth schemes are only advised however if you happen to be someone willing to take a long shot and take a high risk; long term money investment schemes may pony up the money if you can wait and see how the tide turns; if things don’t pan out however, then there’s much at stake.
Then there would be income funds; income funds aim at ensuring that the person who invests in them continues to receive a steady amount of money; income funds generally desire to maintain a steady flow of cash to their investors; income funds try to provide capital stability and are low to medium risks; they are amazing if you happen to be someone who wishes to get a steady source of money without the hassle of waiting for a long term and overdue investment or the worries of whether they will actually eventually receive that money or not. Last but not least, we have the balanced funds; the aim of balanced funds is to ensure steady growth and regular income as well. These are medium to low risks and also ensure that one’s income moderately grows at the same time as they take low risks and do not lose much of what they have invested.
So whether you’re into a long term investment or happen to be starting out at the lower level of capital investment, and would simply like to be able to invest in a mutual fund scheme that allows you to receive money at a steady rate and without losing anything, there is definitely some form of mutual fund scheme you can invest in- be it a balanced fund, equity share or even a growth scheme!
-‘It’s not how much you do, it’s how much you put in what you love doing!’
-‘Get off your high horse and take a risk now!’
-‘Whether you’re looking for high or low term investments, Mutual Trust funds will always be there for you.