Mutual Funds - Easily Explained | Should You Invest ? Advantages & Disadvantages , How to invest ? (Beginner )| JINVENTOR



What is Mutual Fund ? :- 
     Mutual fund is a special kind of investment through which you can invest on different places together .You can do a diversified investment by investing at one place . Asset management companies manage the Mutual Funds . 
     Generally many people give their money to asset management company . That company invests all the money collectively at different places . They have appointed experts who invest the money at different places & sectors cleverly . And after the return out of that some small percent is kept by the asset company & the rest you get back as per that return rate . 
  
EXAMPLES :- 
      HDFC , ICICI , HSBC ,Aditya Birla , Reliance , TATA are examples of Asset management company . And also some banks have started their own asset management company . 

RETURN :- 
      The return rate depends upon the Mutual Funds that you are investing in & how risky is your Mutual Fund . Sone mutual funds give high returns but they are highly risky . Mutual Funds can give the return rate of 5% to more than 30%. But the average return rate is 12% . 
RISK :- 
      Some Mutual Funds can be zero risky or also be highly risky . It totally depends upon where the asset management company is investing your money . If that company is investing on stocks then it will be more risky but you will get more returns . And if it's investing in the Govt. bonds then it will be less risky but return is very low . 

Should You Invest In Mutual Funds ?
      Yes off course You should invest in Mutual Funds . Because if you put your money in bank account , then you will get less amount of return as compare to mutual funds. From bank you can get 5% - 7% profit . But in Mutual Funds the return rate is 5% - 20 % or more than 30% depending upon economy . So it's a good platform if you have small amount of money to invest . 

ADVANTAGES :- 
 (1)  If you have no knowledge about how and where to invest or how yo increase your money value , then you can invest in it . 
(2) Risk is very very very low or very rare. 
(3) High return than bank
(4)simple to invest

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DISADVANTAGES :- 
(1) There are some Mutual funds in which you can't withdraw the money untill the time period. So you should read the terms & conditions before investing in any Mutual Fund.
(2) But other drawbacks are not really problems . That are simple . Ao you can invest in mutual funds . 

HOW TO INVEST ? (BEGINNERS )
    If you have only some basiv knowledge about mutual funds or not having any knowledge also you can invest in Mutual Funds . 
   You can invest a big amount or by monthly SIP . But remember that long time Mutual Funds give high returns . But sometimes not & it's very rare . So as a beginees you can use GROWW app ( you can install it from play store ) for investing . Groww app doesn't charge any commission & it's very secure & simple. 


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