Mutual funds could help you grow your money without needing to know much about the stock market. They gather money from various investors to create a diversified portfolio of assets like stocks, bonds, and government securities. Managed by Asset Management Companies (AMCs), these funds employ professional fund managers. These managers analyse market trends and adjust investments to optimise returns and manage risks. In India, the Securities and Exchange Board of India (SEBI) regulates these funds.
To invest, you buy 'units' of a mutual fund, each with a value known as the Net Asset Value (NAV). NAV could be subject to changes based on the market fluctuations. You could invest in these funds through a lump sum amount or an SIP, where you invest small amounts regularly. You could review the fund you’re investing in using the Fund Fact Sheet. This document contains details on the fund’s objectives, portfolio, performance, and other key metrics that might be of use.
You could check out ELSS for income tax deductions of up to Rs. 1.5 Lakhs under Section 80C of the IT Act. Whether you’re saving for retirement, education, or other goals, mutual funds could help you achieve your financial goals.
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