Mutual Fund

Mutual Fund

Mutual Funds in India are one of the popular investment vehicle that allows individuals and institutional investors to pool their money together and invest in a diversified portfolio of stocks , bonds, money market instruments, and other securities. These funds are managed by professional fund managers who make investments decisions on behalf of investors. 

Investors who don’t want to manage their investments by themselves or want to invest a small corpus in various diversified stocks or instruments, can invest through Mutual Funds.

There are various types of Mutual Fund Schemes in which Investments can be made. Mutual funds in India come in various types, each with its own investment objective and portfolio composition. Different types of Mutual Fund Schemes are:

a. Equity Funds: These invest primarily in stocks and are suitable for investors seeking long-term capital appreciation.

b. Debt Funds: These invest in fixed-income securities like bonds and are suitable for investors looking for income generation and capital preservation.

c. Hybrid Funds: These invest in a mix of equities and debt instruments, offering a balanced approach between risk and return.

d. Money Market Funds: These invest in short-term, low-risk money market instruments like Treasury bills and commercial paper, making them a safe option for parking surplus cash. 

e. Index Funds and Exchange-Traded Funds (ETFs): These funds aim to replicate the performance of a specific market index, such as the Nifty 50 or Sensex, and are passively managed.

f. Sectoral Funds: These funds invest in a specific sector or industry, like technology or healthcare.

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