Question about Mutual fund - What is mutual fund? Which one is good mutual fund as er you?
i will make an attempt to make it simple.
there are many complex investment options like
shares,government bonds,company deposits etc.
each instrument has some element of risk associated with it.
there are a group of people whose job is to understand these instruments and invest your money in them they take a small fee known as load to cover operational [day to day expense]
there is no single answer to your second question . based on each individuals need and risk bearing capacity . a muual fund can be suggested
in case you need more information please feel free to drop a line at
think of a mutual fund as a company that brings together a group of people and
invests their money in stocks, bonds, and other securities. Each investor owns
shares, which represent a portion of the holdings of the fund.
You can make money from a mutual fund in three ways:
1. Income is earned from dividends on stocks and interest on bonds. A fund
pays out nearly all of the income it receives over the year to fund owners in
the form of a distribution.
2. If the fund sells securities that have increased in price, the fund has a capital
gain. Most funds also pass on these gains to investors in a distribution.
3. If fund holdings increase in price but are not sold by the fund manager, the
fund's shares increase in price. You can then sell your mutual fund shares for
a profit. Funds will also usually give you a choice either to receive a check for
distributions or to reinvest the earnings and get m ...more
Birla Equity Fund is good