Mutual Funds

A Mutual Fund is an investment scheme that pools money from many investors which is further invested by a professional fund manager. Every Mutual Fund works around certain investment objective and attempts to achieve the same.

How to Invest in Mutual Funds

There are two ways of investing in Mutual Funds via a Systematic Investment Plan (SIP) or investing One-Time i.e. Lump Sum. The Primary difference between the two is- in a lump sum one has to invest the whole amount in one go and in SIP one can invest in a mutual fund at fixed intervals such as monthly SIP.

Returns

Mutual Fund offer returns to their investors' returns in two forms - Dividends and Capital Gains.

• Dividends are paid out when the company makes profit (if any). Dividends are rolled out to investors proportional to the number of mutual fund units held by them.
• A Capital Gain is earned by an investor in case the selling price of the security held by them is greater than the purchase price.