Today everyone are want to earn extra money by simply investing in stock market. But investing in stock market is quiet risky due to high volatilty. And also, choosing best stock, investing in it and tracking its position is very difficult task. For investing in market and managing it by own is quiet hard, therefore, a new types of market is introduced, famously known as mutual funds.
Mutual Funds will provides better investment option with minimum risk and high return.
Now, what is mutual funds and how it minimize the risk and provides high returns. If you have such types if question, don't worry, it will get cleared in this article.
What is Mutual Funds ?
Investing directly, in stock market which is always volatile and risky, it will not guarantee about the profit or return. So, it is very risky and difficult for any people who don't have knowledge of stock markets.
To solve this issues, various financial institution and banks provides risk less and guarantee return investment scheme to the people. This scheme is known as mutual funds scheme.
In Mutual Funds large number of peoples are investing money in various companies and bonds which is selected by an experts.
Mutual Funds is managed by the market expert who can gives you guaranteed profits and returns. There are many peoples investing in mutual funds and earning a good amount of money return.
You can also invest in mutual funds and earn good amounts of money return.
Types of Mutual Funds
There are many types of mutual funds scheme provided, but majorly, there are three types of mutual funds are famous among investor. They are
1. Index Funds - In the index mutual fund, your money will get invested in top companies stock of a particular stock market index. For example, Investing money in top best performing and analyzed stock on Nifty Fifty. This types of mutual funds is also know as ETF.
2. Equity Funds - In this stock mutual funds, your money will get invested in best performing and analyzed company's stocks by an experts.
3. Bonds Funds - In the bonds mutual funds, an expert invest our money in different types of PSU bonds, Corporate bonds, Government Bonds, Gold SGB and etc. This types of investment is considered as safest or risk less and high return investment.
How To Invest in Mutual Fund ?
Now, you need to know that how you can start investing in mutual fund.
There are many fintech apps that provides easy mutual fund investment facility. You can also invest money in mutual funds very easily.
To start investing in mutual funds, you need to follow the steps given below :-
1. Download the Groww App from playstore.
2. Open online demat account in few minutes by providing basic information, such as, Aadhaar Card, Pancard, Registered Mobile Number (RMN) and Bank account details.
3. Link your bank account for online transaction.
Now, you are ready to invest in various types of mutul funds available on Groww App.
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