What are Mutual Funds? - Franklin Templeton India

What is a

mutual

fund? So

what

do we know about

mutual

funds

? Disclaimer Investments in mutual

funds

are subject to market risks. Please read all documents related to the scheme carefully. You've heard this disclaimer before and it scares you and that's probably all you associate with mutual funds, right? That's far from truly understanding mutual funds and their benefits. A mutual fund is a professionally managed collective investment vehicle that draws money from many investors to purchase securities and is small, as an avenue that allows you to diversify investments across different asset classes and within an asset class and Investors do not have than rack your brains over it or on your own because mutual funds provide the great benefit of professional money management experience.

You understand. Well, let's explain this with a simple example to get from point A to point B. two options: you can ride your own bike or you can take public transportation like a bus. If you take the first option, you get full control by deciding your own travel times, start and end points, routes, food, etc., but all that flexibility comes with two conditions that you must have. you know how to ride a bike and you have to really concentrate on riding it; On the other hand, if you take a bus, you may not be able to choose the exact route, but you will still have the flexibility to read the newspaper on the way without worrying about the impulse itself, plus it is cheaper for your pocket, think In a mutual fund scheme, it is something like the bus, it is a collective investment vehicle that has a clearly stated investment objective, such as getting from point A to point B, and is managed by professional fund managers at nominal cost and An investor could invest in the scheme if his objective is in line with his personal needs by investing in the mutual fund scheme the investor has outsourced the work of managing his money to the fund manager then he would better get the money according to the laid plan objective do the research to select the underlying instruments build a portfolio keep track of those investments make changes when necessary and so on obviously all these services have a cost like riding your own bike can be more expensive and something like investing directly in financial markets However, investing in a mutual fund is like taking a bus where the travel costs are divided into a mutual fund plan.

These costs are divided among investors based on the amount they have invested. Mutual funds also offer investors more flexibility, allowing them to decide when to start investing and in most cases, when investments are withdrawn, this makes mutual funds an ideal investment vehicle for planning one's financial goals. one. Once an investor knows his financial objectives and needs the amount and time horizon, he can easily go ahead and select schemes that can help meet his objective. This statement that neutral funds is not as complicated as you think and now that you have understood how a mutual fund works, it is in your best interest to invest and take advantage of the benefits they offer, so don't let the disclaimers on mutual funds scare you any further. , we hope you do.

I enjoyed watching this video, watch more and we will help you learn different investment concepts. You can also write to us with your comments to the editor. Investments in Templeton com mutual funds are subject to market risks. Please read all documents related to the scheme carefully.