What is the meaning of Mutual Funds?Is it safe to invest?

Answer 1

A mutual fund is an investment vehicle that gives you the opportunity to invest in stocks and/or bonds without doing your own research or having to have a 'large' amount of money to buy into an investment. You're getting professional management of your money by either an individual or group who manages the fund.
When you put money into a Fund you are buying a share of the total value of the Fund. The managers use your money to buy stocks or bonds and charge fees (hopefully small) to cover their costs.
Safety is measured in risk, and with every investment there is risk. In theory the higher the risk the higher the potential profits (and interest rates). Triple tax free or govt bond funds are the 'safest' the riskiest can be many types from sector funds (one type of business stock) to junk bond funds among others.
A proper way to invest is to spread the amount of money you have across a few types of Funds, depending on your risk level, age, and when you expect to take out the money. Then evaluate your position at least once a year and move money around to keep the 'mix' the way you want it.

Answer 2

Don't buy mutual funds. When you do, you're adding a middleman. Mutual funds tout themselves as a good way to diversify, but Warren Buffett, the most successful investor alive, says that diversification is only necessary when you don't know what you're doing. If you do some research, you can learn what companies are good investments. Buy stocks, it eliminates the middleman. Mutual funds have managers and employees, and they all have to get paid, which cuts into your earnings. Go direct with stocks, it's much wiser, you just need to do some research to learn about the companies you're investing in.

Answer 3

A mutual fund is usually run by a company that invests broadly in many different stocks or bonds. Many company specialize in certain types of stocks say Medical or Utilities or blue chip. By investing in a broad range of stocks the Mutual tries to average or minimize the risks involved. so mutuals are a good place to invest and there are no broker fees. They also publish there track records for the previous years which gives you a good idea of their quality and profitability.

Answer 4

Mutual Fund is a type of fund where everyone put in their money into this fund, then the fund manager will make use of this fund by investing it in various assumed-to-be-good stocks. When these stocks' value rise and the fund makes a profit in return, this profit will be allocated back to everyone, after deducting all the administrative and professional costs.

Answer 5

long gone the early yrs like in ninety`s there have been maximum of scams , now the SEBI is the terrific gorverned org in the international so there are maximum of FIIs registered with india. & comming back to UR query on Fund mangers , sure there are circumstances yet no longer even a handfull. these days the markets commerce around 30K to 35K Crs avg , be relax certain no longer even the main important Fund domicile can shake this marketplace. In this form of massive marketplace circumstances do take place it doesnt advise that the MF`s are undesirable , i could propose u path UR hardearned money by way of MF`s if wanna have a peace of ideas & extra over U pronounced ur no longer savy in the markets . paying for and merchandising in markets is information or hypothesis based maximum of small investors burn their money appropriate away .My own exp is I burnt my hand in distinctive lacs in the final crash , U own specially circumstances u study issues the demanding way. little doubt the terrific fund residences have given a return of 2000% in ten yrs thats no longer undesirable in any respect , & extra over tax unfastened. pals comments are welcome .

Answer 6

one of the safest routes.mutual,made up of many stocks.

Answer 7

great idea