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 mutual 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 mutual 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.
For tax benefits you could check out Equity Linked Savings Schemes (ELSS), a type of mutual fund, that allows tax deductions under Section 80C. Whether you’re saving for retirement, education, or other goals, mutual funds could help you achieve your financial goals.
5
