Mutual funds may seem complicated and intimidating to most people. We will try to make it simple and clear for you at a very basic level. Actually, mutual funds are created only when the money of many investors is deposited. Fund managers are appointed to manage this fund.
types of Mutual Fund
1. Equity or Growth Fund
2. income or bond or fixed income fund
3. hybrid fund
1. Equity or Growth Fund
– They mostly invest in equity i.e. shares of companies.
– Their value objective is wealth creation or capital appreciation .
2. income or bond or fixed income fund
– These are comparatively safe investments and suitable for income generation .
– Examples can be liquid, short term, floating rate, corporate debt, dynamic bond, gift fund etc.
3. hybrid fund
You are best unable to do this job yourself – most of us hire a professional for our income tax return or an architect for our house.
2. You lack both time and interest. Much like hiring a driver even though you know how to drive.