About Mutual Funds

To read म्यूच्यूअल फंड्स in Hindi/हिंदी

Mutual funds is a good way for investment and get good returns, that’s why even you might have seen through many advertisements that “mutual fund Sahi hai”.

Before investing in mutual funds, remember your investment goal and invest accordingly for your:

  • Retirement
  • Own House in future
  • Your children’s education
  • Marriage
  • Own car

Remember that Mutual funds are subject to market risks so invest after checking all the options.

There are two ways to invest in mutual funds:

  1. SIP
  2. Lumpsum

The types of mutual funds:

1) Equity Mutual Funds or Long Term Funds:

  • Investing in equity mutual funds is very risky, as the full amount will be invested in the Equity Market butt these funds have the capability to generate higher returns compared to other funds.
  • These types of funds are suitable for long-term goals.

2) Balanced Funds:

  • Balanced Funds are also known as hybrid funds with money invested in both stocks and bonds.
  • These funds are ideal for those people who are looking for a mixture of safety, income, and modest capital appreciation.

3) Fixed Income Funds:

  • These types of mutual funds are good for Medium Term and are less risky.
  • The money in these funds is not invested in equity funds.
  • Good fund for earning extra income to complete your daily needs.

4) Liquid Funds:

  • Liquid funds are also known as short-term and ongoing funds.
  • Liquid funds generate very fewer returns but have almost no risk and provide 100% returns.
  • There’s zero exit load in these kinds of funds.

You can invest in mutual funds through 3rd party application or by visiting directly to the Mutual fund’s companies websites.

You can also make use of ET-money, Fisdom, Angel bee applications or websites to invest in mutual funds.

To invest in Direct mutual funds use Mycams, Zerodha application or website.

Also, you can give the request to cancel, redeem and switch fund online or through the Application anytime.

Monthly Investment Amount: 10000
Expected Returns 5 years 10 years 20 years 25 years 30 years
8.0% 7.4 Lac 18.3 Lac 58.9 Lac 95.1 Lac 1.5 Cr
10.0% 7.7 Lac 20.5 Lac 75.9 Lac 1.3 Cr 2.3 Cr
12.0% 8.2 Lac 23.0 Lac 98.9 Lac 1.8 Cr 3.5 Cr
15.0% 8.9 Lac 27.5 Lac 1.5 Cr 3.2 Cr 6.9 Cr
20.0 % 10.1 Lac 37.6 Lac 3.1 Cr 8.5 Cr 22.9 Cr

Difference between Regular and Direct mutual funds:

  • As the name suggest Direct Funds are those mutual funds which you have bought directly from the mutual fund company through their website or application.
  • But Regular Funds, what you have bought through a broker or distributor, and In regular mutual funds company pays commission to the intermediary but it will not be deducted from your installments and then recovered as an expense from your Mutual Fund plan.
  • When we compare the Direct and Regular Funds the expense ratio is higher for a Regular plan compared to Direct.

Note: When are investing in Mutual Funds return you make on a direct plan is higher by approximately 0.5% for equity funds and approximately 0.2% for debt funds

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