Basic Concept of Mutual Funds i.e. what are mutual funds?
There are large number of people who wants to invest their money but doesn’t have expert knowledge of investment. Also these are mainly small investors who can’t afford expert fees for investment advices. Mutual funds help such investors to invest their money safely. As mutual funds have enough capital they hire an expert finance professionals for taking investments decisions. The funds collected from investors in mutual funds are invested by the fund managers in different financial assets such as stocks, bonds, and other assets, as defined by the fund’s investment objective. In return they charge a small fees from the investors. These fees charged by mutual funds are regulated by Securities and Exchange Board of India (SEBI). Investors have different investment goals like some may want to plan for retirement while some may want to plan for financing their children’s marriage, etc. Mutual funds provide variety of plans to cater diversified needs of investors.