Mutual Fund one of the most common terms in financial sector has came out to be a good source of income in the recent years. Many people are directing towards the mutual funds investments plan as these give more returns than the other money saving schemes.
Basically Mutual fund is a professionally managed type of collective investment scheme run by many financial organizations that collect money from many investors who are interested ,to buy stocks, bonds, short-term money market instruments and others. These mutual fund companies invest the money of the investors in different stocks in the systematic manner at regular intervals and take profits on the basis of average making.
Mutual fund issued by any company makes its portfolio of which stocks it will invest money in. On that basis they invest the money in accordance with the current price of a particular stock and make average value every month. But there is also a locking period in mutual fund investment normally of one year or two years. If you take out your money before the locking period then you have to pay the pre-mature charges. Usually people invest the whole of money in one go in mutual funds but if you wnt to be on safe side then investing through SIPs is most preferred.
Systemic Investment plan (SIP), preferred by most the money investors is the most convenient way of investing your money in mutual fund. Under this scheme your money will be invested in the stock market on the monthly basis like installments, and you will get the mutual fund at the current NAV price of the month. Also check online SIP Calculator
To let you understand the concept of mutual funds deeply and ensure you before investing DSPBlackRockMFÂ have created some great and useful videos which will explain all the aspects regarding investment in mutual funds and will help you to understand the benefits of investing in mutual funds.
Mutual Fund Videos
What is Mutual Fund?
Benefit of Mutual Fund
http://www.youtube.com/watch?v=PtDvJpg5EfE
Different types of Mutual funds
Entry and exit load
Assets allocation of a mutual fund scheme
Risk of Investing I Mutual fund
Investment risk and return
What to look for in a mutual fund?
Choosing the right mutual fund scheme
What are tax saving schemes?
For more Videos related to Mutual Fund checkout DSPBlackRockMF YouTube Channel