Mutual Funds
Mutual Funds are pooled investment vehicles managed by professional fund managers. They allow investors to invest in a diversified portfolio of stocks, bonds or other securities with minimal effort.
Advantages:
- Low Entry Barrier: Start investing with as little as ₹500
- Diversification: Reduces risk by spreading investment across assets
- Professional Management: Managed by qualified fund experts
- Liquidity: Easy to buy and redeem your units
- Tax Benefits: Under ELSS category (Equity Linked Saving Schemes)
Types of Mutual Funds:
- Equity Mutual Funds: For long-term capital growth
- Debt Mutual Funds: For stable and fixed income
- Hybrid Funds: Combination of equity and debt for balanced risk
- ELSS Funds: Tax-saving mutual funds with a lock-in period
Best For: Investors looking for simplicity, low risk and steady returns.