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In this video by @sbimutualfund you will understand the importance of mutual funds, the types of mutual funds, the different ways to invest in them, their benefits, and much more.

Watch the video to learn more!

What are Mutual Funds?

Mutual Fund is an investment platform where several investors join together and pool their money. The fund manager then invests this collective capital in producing returns across various asset types, including stock, debt, gold, and other instruments. Investors receive a percentage of the gains and losses from these assets based on their investment share.

Mutual funds are the best option for investors who don't have a lot of money or don't have the time or desire to do market research but still want to increase their wealth. Professional fund managers invest funds raised in mutual funds following the scheme's declared goals. The fund house requests a small fee in exchange, which is subtracted from the investment. The Securities and Exchange Board of India has set limits on the fees that mutual funds may charge as part of the regulation (SEBI).

Mutual Fund Offerings

Mutual funds provide various investing options across the financial horizon. As investing objectives differ—post-retirement costs, funds for children's education or marriage, home loan, etc.—so do the products needed to meet these objectives. The Indian mutual fund sector provides various plans and meets different investor demands.


Types of Mutual Funds

Mutual funds in India are divided into various groups according to the asset classes they invest in. The following are some common categories of mutual funds investment:

Equity Mutual Fund: Most of the assets that equity funds invest in are in stocks. Under the market value of the stocks they invest in, these funds are divided into various groups. Types of equity funds cover - large-cap funds, mid-cap funds, small-cap funds, and multi-cap funds.

Debt Mutual Funds: Debt funds make money by lending to businesses and the government while also purchasing debt-related securities. Types of debt fund cover - money market funds, corporate bond funds, overnight funds, and liquid funds.

Hybrid Mutual Funds: Hybrid funds invest in various asset classes, such as gold, debt, and stock. Depending on how much of their assets are spread across many asset classes, hybrid funds fall into various categories. Types of hybrid funds include - aggressive hybrid, balanced hybrid, dynamic asset allocation fund, and arbitrage fund.

Different Ways to invest in Mutual Funds

Systematic Investment Plan [SIP]: SIP enables you to invest a certain amount over time. Due to its convenience, SIP is one of the most efficient implementations for investing in mutual fund schemes. Additionally, it aids in balancing the price at which you acquire the units of these funds.

Lumpsum: Lump sum investment refers to a one-time investment. People typically make lump sum investments after receiving a large quantity of money, such as bonuses or cash from the sale of an asset.

Benefits of Mutual Funds

Mutual fund investment can be very advantageous, especially if you're seeking a straightforward yet diversified method of investing. Mutual funds are easy to use and expertly managed.
You get a particular number of units in a mutual fund when you invest in it. The net asset value of the mutual fund is used to divide the income the fund earns among investors (NAV).

Understanding the guidelines for investing in mutual funds interest rates can help you avoid losses or unwarranted risks, building your wealth over the long term. Let's know about the mutual fund benefits!

Liquidity: Mutual fund investments are well-known for being highly liquid investments that are simple to convert to cash anytime you require immediate cash. Given that some mutual funds may have a lock-in period, you should inquire with your fund manager if your mutual fund can be cashed out immediately.


Professional Management: Professional fund managers specialising in managing mutual funds decide where and when to invest the pooled funds. Market trends and thorough research are regularly monitored while making investments.

Diversification: When you invest in mutual funds, your fund manager will place your funds in various securities, including equities, debt funds, money market instruments, and equity securities.


Therefore, SBI Mutual Fund is the best mutual funds to invest in long-term for your future!

If you still need to start your investing journey, click on the link to 'Kuvera - Your Safe Space to Invest': [ Ссылка ]

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