Mutual fund is a pool of money which is taken from the large number of customer and then they are invested in equity and debt market by a professional portfolio manger and then what ever may be the profit or loss the same is shared to the customer in the ratio of the units they hold.
Advantages of Mutual funds
1.Professionally managed- Every schemes of Mutual fund is Professionally managed by a Fund manager,they have a group of research team which researchs on Equity, stock maket and debt instruments and according to there research they make a portfolio of Stocks and debt instuments and invest investor money in that portfolio.Every schemes has a seperate portfolio accroding to funds investment objective.
2.Diversification- As every scheme has a seperate portfolio,the money of the investor is invested in different stock and different sectors and hence diversified,if a particular stock or sector is not doing well it will balanced by the sector or stock which is doing well and loss can be minimize .
3.Liquidity-All open ended funds can be reedeem at any woking day,the payout for Debt is T+1(trading+1) and for equity funds payout is T+3 to T+5 depends upon the investemnt objective.Most equity funds payout is T+3.
Advantages of Mutual funds
1.Professionally managed- Every schemes of Mutual fund is Professionally managed by a Fund manager,they have a group of research team which researchs on Equity, stock maket and debt instruments and according to there research they make a portfolio of Stocks and debt instuments and invest investor money in that portfolio.Every schemes has a seperate portfolio accroding to funds investment objective.
2.Diversification- As every scheme has a seperate portfolio,the money of the investor is invested in different stock and different sectors and hence diversified,if a particular stock or sector is not doing well it will balanced by the sector or stock which is doing well and loss can be minimize .
3.Liquidity-All open ended funds can be reedeem at any woking day,the payout for Debt is T+1(trading+1) and for equity funds payout is T+3 to T+5 depends upon the investemnt objective.Most equity funds payout is T+3.
