Mutual Funds simplified
Making sound investments will go a long way in letting your hard-earned money work for your profit. Mutual funds are considered a safe route for investment. A good mutual fund definition would be ‘a collective investment put together and then invested in various instruments by a fund manager’. These instruments could be shares, stocks, bonds and more. Bajaj Finserv offers Mutual Funds that can enhance your financial portfolio and create a diverse investment package.
Before finalizing on a mutual fund, make sure you have a clear picture of why you need this investment—a short-term requirement, a retirement plan or even a fund for your child’s education. Also calculate how much you are willing to spend and the timeframe within which you require your investment to reap benefits.
Pick a Mutual Fund that Suits You
There are a range of mutual fund options to choose from. One of the types of mutual funds includes debt or income schemes where a part of your money is placed in debt instruments or government securities. If you would like to maintain access to your investment at any given time, you could opt for open-ended mutual funds.
Another type of mutual fund is an equity fund which involves higher risk, but gives excellent long-term benefits and can also work as a tax-saving device. Gold funds are also increasingly popular with investors, especially gold bars or gold-based security funds. There are also close-ended mutual funds where your money is locked in for a particular period.
Why Opt for Mutual Funds?
When you understand what mutual fund investment is, you will realize that it is secure and can accrue great benefits. Mutual funds are managed by a team of experts who are well-qualified in the fields of investment and capital appreciation. This ensures that your money is in good hands. Another reason to invest in mutual funds is that you can withdraw it whenever required or even get a loan against your investment. Because it is a collective investment, the risks involved in mutual funds are relatively lower.
Besides Mutual Fund investment, you can also choose Fixed Deposits, like the one offered by Bajaj Finserv, that cater specifically to your needs.