Wednesday, May 22, 2013

Mutual Funds Investment in India - Introduction to MFs


Mutual funds are highly popular combined investment sources in India. The MFs are well known as money making investment schemes. Due to the advantages like generating returns and profits with share stock market performance and tax deduction benefit under 80 C of Income tax policy, Indians are showing very much interest in MF.

With the benefits and advantages of mutual funds are attracted Indian individuals and NRIs to invest their many to meet future needs with generating secondary money with their savings investment habit.

What are Mutual Funds?

Mutual funds are simply a collection of bonds. In other words MFs are company stocks.

Types of Mutual funds in India

Mutual funds can be categorized into following available categories: They are,

Ø     Equity funds
Ø     Bond funds
Ø     Money Market Funds
Ø     Hybrid funds
Ø     Closed-end funds
Ø     Large cap funds
Ø     Open-end funds
Ø     Mid-cap funds
Ø     Balanced funds
Ø     Growth funds
Ø     Sector funds
Ø     Exchange traded funds
Ø     Index funds

How to invest in MFs in India?

Investment ways in Mutual Funds:

Here are 2 ways exists in investing into Indian mutual funds schemes. 

Simply they are,

A) Direct investment method,

B) Indirect method of investment.

Direct investment in M Fs:

There are 2 ways are exists to invest directly into Indian mutual funds schemes. The first way is one-time lumpsum investment. The second way is SIPs -Systematic Investment Plans.

Indirect investment in M Fs:

ULIP is the indirect way to invest in a mutual fund. 

Select the right mutual funds,
Track your funds’ performance,
Diversify your mutual fund investment,
Invest the money to save your future......

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