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What are Mutual Funds? - Franklin Templeton India

What are Mutual Funds? - Franklin Templeton India

what

is a

mutual

fund so

what

do we know about

mutual

funds

disclaimer

mutual

fund investments are subject to market risks read all scheme related documents carefully you've heard this disclaimer before it's freaked you out and that's probably all you associate with

mutual

funds

right but that's far from really understanding

mutual

funds

and its benefit a

mutual

fund is a professionally managed collective investment vehicle that pulls money from many investors to buy securities
what are mutual funds   franklin templeton india
and it's small like an avenue that lets you diversify investments across different asset classes and within an asset class and investors don't have to break their heads over it or all on your own because

mutual

funds

are for the big benefit of professional money management expertise you get it okay let's explain this with a simple example to get from point A to point B you have two options you can ride your own bike or you could take public transport like a bus if you took the first
option you get full control deciding your own travel times start and end points routes feed etc but all that flexibility comes with two conditions you have to know how to ride the bike and you have to actually focus on riding it on the other hand if you took a bus you may not be able to choose the exact route but you'd still have the flexibility to read your newspaper along the way without worrying about the drive itself moreover it's cheaper on your pocket think of a

mutual

fund scheme
what are mutual funds   franklin templeton india
is some

what

like the bus it's a collective investment vehicle that has a clearly stated investment objective like 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 its objective is in line with his personal needs by investing in the

mutual

fund scheme the investor has outsourced the job of managing his money the fund manager would then best the money in line with the stated objective do the research to
select the underlying instruments build a portfolio keep track of those investments make changes when required and so on obviously all these services come at a cost like riding your own bike can be more expensive and kind of like investing directly in financial markets however investing in a

mutual

fund is like taking a bus where travel costs are divided in a

mutual

fund scheme these costs are divided amongst investors based on the amount they have invested

mutual

funds

also offer investors more
what are mutual funds   franklin templeton india
flexibility letting them decide when to start investing and in most cases when to withdraw the investments this makes

mutual

funds

an ideal investment vehicle to plan for one's financial goals once an investor knows his financial goals and needs the amount and the time horizon he can easily go ahead and select schemes that can help fulfill his objective this claim neutral

funds

are not as complicated as you feel and now that you have understood how a

mutual

fund works it's in your
advantage to invest and reap the benefits they offer so don't let disclaimers about

mutual

funds

freak you out anymore we hope you've enjoyed watching this video watch more and we'll help you learn about different investing concepts you can also write to us with your feedback at editor'

Templeton

com

mutual

fund investments are subject to market risks read all scheme related documents carefully