wHAT IS MUTUAL FUND? HOW MANY TYPES ARE THERE?

Answer 1

There are several types of Mutual Funds:

Sector-based: These invest only in a particular sector Eg. IT, Telecom, Petrochemical, etc

Index-based: These invest only in the Index i.e. BSE Sensex, NSE Sensex. Their valuation is based on the value of the Index and not directly on any particular share.

Growth-fund:They generally invest in equity across sectors and try to maximise their gain wherever possible.

Mid-cap/ Small-cap Fund: They invest only in mid-cap or small-cap companies. Though the returns can be very high, so are the risks.

Balance Fund: They invest both in debt and equity so as to provide good growth through equity and safety but low returns through debt.

Answer 2

In it's most basic form, a mutual fund is nothing more than a company that takes the money of individual investors and invests that cash in a variety of securities. These securities are usually stocks, bonds, money markets, or a combination of all three.

The investors usually take the form of stockholders in the company. They have a "pro rata" share of any profits made when the securities are sold, but they also agree to absorb any losses.

There are two big advantages to investing in a mutual fund. The first is that professionals will manage your money and take care of the record keeping. The second is that your money will be diversified into many different investments, which limits (but does not eliminate) the chances of losing your entire account.

So far as how many different kinds there are, that is pretty much impossible to answer. Not only are there an infinite variety of investments that mutual funds can put their shareholder's money into, but they all have different philosophies and goals. Some look to maximize security, while others look to increase yield over the shortest period of time. Most fall somewhere in the middle of these two extremes.

James R. Rummel

Answer 3

In respect of duration there are two types of Mutual funds
1 Close Ended Fund
2 Open Ended Fund

Answer 4

Mutual Fund is a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. There are many types of mutual funds but they are basically classified into 3:
1. Equity based mutual fund (majorly into equity shares)
2. Debt based mutual fund (majorly into debt funds)
3. Balanced mutual fund (balanced between equity & debt)

Answer 5

Mutual fund is a fund thats invests in equitiy or debt on behalf of its investors. A mutual fund builds a corpus by raising money from individual investors. It then invests this amount in the stock market or in debt instruments. Mutual funds can be broadly classified into equity oriented or debt oriented funds depending upon the instruments they invest in. Equity funds are among the best investment options available to individual investors globally with returns in the range of 20 to 30 percent per annum. In India, HDFC offers some of the best equity funds available in the market. Equity funds can be further classified into diversified equity funds or sector specific funds depending on the nature of their portfolio. A diversified fund is generally the better option since its portfolio is diversified across various sectors. If you want to start investing in equity funds try HDFC Taxsaver Fund.

Answer 6

Mutual funds are companies who invest in stock market. They float schemes; collect money; invest in markets; charges the investors a percentage for maintenance of the funds and give returns to investors.

Usually, Investors who do not have technical knowledge on investing in stocks or investors who are risk averse go to Mutual funds. Since mutual funds invest in a portfolio of stocks, the risk of investing in mutual funds is considerably lesser as compared to invest in stock market directly.

Answer 7

pass with a balanced fund, they're in many circumstances observed as a "combination". stay faraway from the uniqueness money. it would nicely be a no load, low fee fund. seem on the full rate ratio, which you would be able to check out on Yahoo finance. it would nicely be under a million%. it would nicely be set up as a Roth IRA. that supplies you the superb return via the years. in case you attain the element the place your investments exceed the optimum contribution point, you may open a 2nd fund. you besides mght might desire to contemplate the fund minimums. T Rowe fee has decrease minimums than constancy and forefront. being waiting to make deposits greater frequently facilitates you a much better earnings from "greenback value averaging." stay with money that have been around for awhile and have a reliable music checklist. Many money have long previous out of economic corporation via the years so stay away from the greater moderen ones.

Answer 8

Mutual fund means, we does need to buy the shares separtely wheras the Mutual fund company will do for us...

Answer 9

Here's a page for finding a good good mutual fund to invest in:
http://www.best-stock-trading-systems.com/mutual_fund_ratings.html

Answer 10

Logon to http://www.mutualfundsindia.com/ You will get all information about Mutual Funds.


Cheers,
Jay