In this new era, it is very important for an individual to look up for opportunities to expand himself in every aspect. One of these aspects of one’s life is money, which plays an important role in one’s life. Money, is something which is required by everyone, because in this world in which we are living most of the exchange of commodities, goods and services are provided by the exchange of money. Hence, we know that growth of our money is very important as we ourselves grow in our lives.

But, the question arises here, what most of the people in our country do? We Indians have mentality to grow our knowledge, earn a good paying job and seek for more growth in job. But what do we do with the money we get as our salaries? We keep that in bank account for eternities or we just spend it on buying some expensive stuffs, which are not even required by an individual, Or if investment comes in one’s mind he simply goes to bank and creates an F.D. (Fixed Deposit) of a particular amount, which then again have very low rate of returns (about 5%-6%). We Indians have mentality to let ourselves work but not let our money work, we are simply afraid of doing or trying something new especially when money is involved and we take the route what most of the people of our country take and end up doing nothing.

There are lot of ways of investing in this new area, there is Stock Market, Crypto Currencies, Corporate and Gold Bonds, etc. Now, here we are going to discuss about one such way of investing our money which requires only a little knowledge for investors to have and can earn great returns for its investors. One of the ways of Investment we will be discussing is Mutual Funds.

A Mutual Funds is a type of investment trust which collects money from the investors who share common interest and are looking for investment in common investment classes, these are generally managed by an industry expert, which are hired by the mutual fund houses. Mutual Fund House are the companies which have various types of investment plans in various asset classes like equity, debt, gold, money market, liquid, hybrid, foreign investment, etc. There are various schemes offered by a Mutual Fund House and we can invest in any of the asset class we would like to acquire. The only thing to keep in mind is to research properly about funds a person is going to invest in and check with our risk to reward ratio like if it is an equity fund, then what type of shares the fund is going to invest, if it is debt fund, then to which type of companies debt will be given. If we are going to invest in a particular fund we have to look for risks the fund carries, the amount which we are going to invest and amount of returns or reward which we may get by investing in that fund. Mutual Funds are usually for Long-term investors who are less bothered about doing research on companies and want to invest their extra capital somewhere which is not required by them in short term and they can keep invested in it for years. In, Simple words Mutual fund is way of hiring an expert who does investment for you and manages your portfolio.

Various types of Mutual Funds have various types of returns ranging from more than 100% to as low as 6-8% and also various types of fund have various types risk related with it. The amount of risk basically depends upon the type of investment class a person is invested in. The Mutual Funds activities and transactions are regulated by SEBI and RBI. So, thee is no chance of a scam happening with investors and there money invested will bes safe only risk there is to them is the risk of the asset class, Also, mutual funds are subject to market risks. The types of Mutual fund for different types of investors will be discussed on next time. Till then keep investing, let money make more money and Happy Investing!!!