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 risk. Carefully read all the documents related to the scheme. that is far from really understanding mutual funds and their benefits a mutual fund is a professionally managed collective investment vehicle that draws money from many investors to buy securities and is small as one avenue that allows you to diversify investments across different asset classes and within an asset class and investors don't have to rack their brains over it or alone because mutual funds are to the great benefit of professional money management experience you get it ok let's explain this with a simple example for to get from point A to point B you have two options you can ride your own bike or you can take public transportation like a bus if you took the first option you have full control of deciding your own travel times, start and end points, routes, eating etc, but all that flexibility comes with two conditions: you have to know how to ride a bike and you have to really focus on an give into it; on the other hand if you took a bus you might not be able to choose the exact route but you would still have the flexibility to read your newspaper on the way without worrying about the journey itself plus it is cheaper on your pocket think about a mutual fund scheme is something like the bus 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 investing in the plan if your goal is in line with your personal needs investing in the mutual fund plan the investor has outsourced the job of managing his money the fund manager would then optimize the money according to the stated goal doing research to select the instruments underlying assets build a portfolio keep track of those investments make changes when necessary and so on obviously Among all these services there is a cost like riding a bike can be more expensive and something like investing directly in the financial markets however investing in a mutual fund is like taking a bus when the travel costs are divided into a mutual fund scheme While 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 to withdraw investments.

This makes mutual funds an ideal investment vehicle for planning one's own financial goals. Once an investor knows their financial goals and needs in the amount and time horizon, they can easily go ahead and select schemes that can help meet their goal. this statement neutral funds are not as complicated as it seems and now that you have understood how a mutual fund works it is in your best interest to invest and reap the benefits they offer so don't let the disclaimers about mutual funds scare you any more we hope they you enjoyed watching this video watch more and we will help you learn about different investment concepts you can also write us with your comments at the editor' Templeton mutual fund com investments are subject to market risk please read carefully all documents related to the program