What are Mutual Funds?
Mutual Funds Mutual Funds What are mutual funds? It is a way to invest in which money is pooled to invest in stocks, bonds, etc.; it is an excellent way for people who don’t have a massive chunk of money (for stocks, real estate, gold, etc.) and knowledge of the stock market. Here a fund manager manages your funds, and it is dependent on his trades that decide your fortune. Types of mutual funds: 1. Equity Mutual Funds : In this, your money is invested in the stock market. 2. Debt Mutual Funds : In this, your money is invested in debt, which means less risk as well as fewer returns. 3. Hybrid Mutual Funds : In this, your money is invested in both equity and debt. 4. Goal-oriented Funds : these are funds one makes for some specified goal in mind. 5. Other Funds : Mainly index funds, in this money is in invested in the index. A mutual fund gives small investors access to a professionally managed portfolio, but it has its demerit as well, such as you have to pa