Tutorial about mutual funds
A mutual fund is an investment that allows all investors access a well-diversified portfolio of equities, bonds or other securities. Each investor has a share
in the gain or loss of the fund. Units are issued and can be redeemed as needed. The fund's Net Asset Value (NAV) is determined each day.
They are the companies that receive your money and invest it in financial markets. It is an ideal tool for people who want to invest but fear the complexities
of the markets or the arcane language experts use.
Planning is crucial as none of us plan to fail but most of us fail to plan. Thus, once we have assessed our financial status we can proceed to the next step of
building a financial plan to achieve our goals. Otherwise most of our goals would be distant dreams.
At FundsIndia.com, we provide an online investment platform, and we offer free Partner services. One of the most frequent advisory questions that we get from
our investors is typically this - "I can save x thousand dollars every month. I would like to invest in mutual funds through SIP. Please suggest some funds for
me".
Yes, most mutual fund products (except capital guaranteed funds) have underlying assets (Equities, Bonds etc.) that fluctuate on a daily basis. Hence capital
loss due to lower prices of the underlying assets or default on bonds is possible. Investing according to an asset allocation plan, having enough exposure to
other capital guaranteed investment such as FDs, Government Guaranteed bonds etc., can to a large extent mitigate these.