A mutual fund is a professionally managed investment scheme where money is pooled from several investors and then invested in different instruments such as debt, equity and money market securities by Asset Management Companies. The gains or profits as a result of this exercise and delivered back to the investors after the asset management company deducts their fees.
- Equity: Equity funds operate within stocks of domestic companies listed on stock exchanges.
- Money market: This mode of investment is mainly targeted at investors who prefer easy liquidity and short term gains and are usually in the form of Treasury Bills, Commercial Papers etc.
- Debt: Debt funds are usually considered as an alternative to Fixed Deposits and invest in fixed-income securities.
Type of Mutual Funds:
A Close ended mutual fund has a fixed maturity period and cannot be liquidated before maturity.
An open ended fund can be liquidated at any point of time to receive the principal and interest.
At Kakode Consultants we help guide you choose the right funds as per your financial goals. Well planned funds are known to deliver good returns in the long term and are an essential part of your investment portfolio. It is best to diversify your portfolio to receive the best rate of return on all investments.