Mutual funds are a popular investment option today. How do they work? First, a corpus is collected from investors. Professional fund managers allocate this into different assets, such as stocks and bonds. Their goal is two-fold: to get the highest possible returns and achieve the fund’s investment objective.
Mutual funds are a good choice for wealth creation. They come with a few key benefits:
Get to know the different mutual fund types before you start investing. Here are some of the common options:
Keep these factors in mind when shopping for the right mutual fund:
To get a picture of how a mutual fund is performing on a day-to-day basis, check its net asset value (NAV). The NAV is a mutual fund’s market value per unit and is updated every day. It is the price at which investors buy and sell mutual fund units.
There are several ways to invest in mutual funds:
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