6. Mutual Funds? Types of Mutual Funds with Examples

Mutual Funds Definition

Mutual Funds are the funds created with the mutual requirement needs of the Investor. It is a basket created with varieties of investment options. similar to basket of shares, bonds, money market or a mixture of all instruments or a basket of shares based on sectors like Bank, IT, Infrastructure, FMCG, etc or basket of diversified shares.

In other words, you have a rough idea where you want to invest your money (for example: shares, sector shares, bonds, money market, etc) but you are not aware of the markets, trend, entry exit criteria, stop loss much and what companies to invest; then mutual funds fit to your requirement. It is much likely as you go to real estate consultant to assist you in your real estate investment needs. Here every mutual funds are managed by financial expert knows as Fund Manager which handles your investment based on your selected mutual funds.

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