WHAT IS A MUTUAL FUND ? | மியூச்சுவல் ஃபண்ட் என்றால் என்ன ?

 

WHAT IS A MUTUAL FUND? : 

Let me take you to a quick story, One day, I went to Pizza Hut with my friend. We ordered a Large Size pizza. But actually, I don't have the total money for the pizza. So I told my friend that we can share the money to equal half. He said Ok. and we ate the pizza together and paid the bill.

In a similar case, A small Investor might not be having a large amount of money to buy a large number of shares. So Mutual Funds came into the picture.

In Mutual Funds, A large number of investors invest a small amount of money or a large amount of money in the share market, as a case a pool of funds is created and invested in the market.

In every Mutual fund, there will be a Fund Manager, who is responsible for investing our money into different securities as per the policy of the mutual fund.

TYPES OF MUTUAL FUNDS:

There are two types of mutual funds in general, they are:-

1. Open-Ended Funds
2. Closed-Ended Funds

OPEN-ENDED FUNDS:

1. You can invest at any time. ( Enter at any time and Exit at any time ).
2. No Fixed Maturity Period. ( There is no fixed period of investment like 3 years or 5 years, You can invest for any period of time).
3. More liquidity.

CLOSED-ENDED FUNDS:

1. It can be Equity Fund or a Debt fund.
2. Cannot invest at any time.
3. Entry only during NFO ( New Fund Offer ) [i.e. New fund registered to stock market].
4. Fixed Maturity Period (generally, 3 to 5 years period ).
5. Exit only on Maturity.

 ADVANTAGES OF MUTUAL FUNDS: 

1. It will benefit the salary workers with the Systematic Investment Plan (SIP).
2. We can invest a small amount every month.
3. It provides a setup or a framework to invest our money wisely.
4. diversification of Portfolio.
5. The cost of investing in a Mutual Fund is NIL and the brokerage for managing your fund is very low.
6. Easy Purchase and redemption.
7. High Transparency and Easy tracking.
8. Less Tension, fewer Losses & Less Distraction.
9. Customized Schemes are available for Different types of Investors.
10. High Liquidity in transactions.

DISCLAIMER:-

The content of this site is only for educational purpose. I am not SEBI Registered. The motive of this site is to share my knowledge on share market to new budding investors and others who are learning about stock market

My Kind request to my site viewers, Before taking any decision please do self analysis, consult or discuss with Your financial Advisor .

மறுப்பு:-

இந்த தளத்தின் உள்ளடக்கம் கல்வி நோக்கத்திற்காக மட்டுமே. நான் செபியில் பதிவு செய்யப்படவில்லை. இந்த தளத்தின் நோக்கம், பங்குச் சந்தையைப் பற்றிய எனது அறிவை புதிய வளரும் முதலீட்டாளர்கள் மற்றும் பங்குச் சந்தையைப் பற்றி அறிந்துகொள்ளும் மற்றவர்களுக்குப் பகிர்வதாகும்

எனது தள பார்வையாளர்களுக்கு எனது அன்பான வேண்டுகோள், எந்தவொரு முடிவையும் எடுப்பதற்கு முன், சுய பகுப்பாய்வு செய்யுங்கள், ஆலோசனை செய்யுங்கள் அல்லது உங்கள் நிதி ஆலோசகருடன் விவாதிக்கவும்.