What is Mutual Fund, its types, how to invest in it (Mutual Fund In Hindi)

Mutual Fund In Hindi: if you make money with money If you are interested, then you must have heard the name of Mutual Fund, you must have seen many advertisements of Mutual Fund in TV, but do you know after all? What is Mutual Fund, when did Mutual Funds start, types of Mutual Funds, how to invest in Mutual Funds and what are the advantages and disadvantages of Mutual Funds.

If you want to get all the above information then you have come to the right article. In today’s article, we are going to provide you all the information related to Mutual Funds. So that it is easy for you to invest in Mutual Funds.

Through mutual funds, you invest your money in such a fund house where the fund manager is responsible for managing your money. Many investors invest money in mutual funds. Fund managers invest the money of all the investors in different places and the profit is divided among all the investors on the basis of investment.

By the way, mutual fund investment is also risky because the stock market keeps on fluctuating, so investing in mutual funds is also risky, however. Share Market There is less risk involved in investing in mutual funds as compared to investing in mutual funds. Read the article till the end to get complete information about Mutual Funds.

What is Mutual Fund, its types and how to invest in it - Mutual Fund In Hindi

So let’s start without taking much of your time, know more about this article – What is Mutual Fund in Hindi?

What is Mutual Fund

Mutual fund in Hindi means collective investment. As its name suggests, some people together invest their money in a fund house, where their money is managed by a highly qualified fund manager.

Fund managers invest the investor’s money in the stock market, and over time, when there is profit, they keep their fees 2 or 3 percent and transfer the rest of the money to the investors on the basis of investment.

How Mutual Funds Work

Through Mutual Fund, investors do not invest their money in the Direct Share Market and invest in such Fund Houses where their money is invested in the stock market by the Share Market Expert. Stock market experts invest the investor’s money in different stocks, which reduces the risk of risk.

Because if there is a loss from one share, then the other share makes up for it. Therefore, there is a possibility of getting good returns in mutual funds. from only 500 rupees SIP You can invest in mutual funds through.

The quantum of investment in mutual funds is determined unit wise and the unit basis is the NAV (Net Asset Value). Asset Management Company (AMC) brings different mutual fund schemes in the market.

Definition of Mutual Fund

Mutual fund is such an investment, in which many investors together invest their money in a fund house, where their money is deposited by the fund manager. share Invest in the market. And after some time, after getting the profit, the fund manager deducts his fees and transfers the rest of the money to the investors.

History of Mutual Fund

In 1963, Mutual Fund was started in India under the name of Unity Trust of India (UTI). Its main purpose was to make new investors aware of the rules of the stock market. UTI was established by the Reserve Bank of India (RBI) and worked under RBI.

In 1978, UTI was separated from RBI and Industrial Development Bank of India (IDBI) was made the regulator of UTI. After this UTI started working under IDBI.

In 1987, banks got the right to form mutual funds and in the same year SBI created the first NonUTI mutual fund.

In 1993, the private sector got approval to form a mutual fund. In which investors get more options to invest in mutual funds.

After this, in 2003, the mutual fund was divided into two different parts, a SUUTI and UTI Mutual fund. This SEBI operate under the rules of.

Today crores of people are investing in Mutual Funds in India and earning good profits. Millions of new people are joining mutual funds every month.

Types of Mutual Funds

There are mainly the following types of mutual funds in India –

  • Equity Mutual Fund
  • Liquid Mutual Fund
  • Debt Mutual Fund
  • Balanced Fund
  • Hybrid Mutual Fund

#1 – Equity Mutual Fund

Equity Mutual Funds are the most popular mutual funds. These schemes invest the investment of investors directly in stocks. These mutual funds can be risky for short term investment, but there is a possibility of getting good returns on long term investment. usually equity To distribute the risk in the fund, investment is done in many sectors.

#2 – Liquid Fund

Liquid funds are also called money market funds. These funds invest in short-term debt instruments so that investors can get reasonable returns in a short period of time. Liquid funds are best for investors who have low risk appetite.

#3 – Debt Mutual Fund

Debt Mutual Funds are also called Fixed Income Funds. These funds invest most of the investors’ money in fixed income assets such as government securities, bonds, etc. In this type of fund, the risk is less but the return is also less. This fund is good for low risk investors who want to generate a steady income.

#4 – Balanced funds

This type of mutual fund divides the investment of investors into Equity and Debt. The allocation also varies according to the risk in the market. In this type of fund, investors can get moderate returns with low risk.

#5 – Hybrid Fund

Hybrid Fund Funds are also similar to Balanced funds but have a lower equity asset ratio. These types of funds give regular income with low risk.

How to Invest in Mutual Funds

You can invest in the following ways to earn from mutual funds.

  • First of all go to the official website of any mutual fund
  • After this you have to complete e-KYC. KYC is for your identity.
  • The process of KYC is done online only.
  • After KYC completion, you can invest in mutual funds.

The easiest way to invest in Mutual Funds trading application, You Groww App, Upstox App Like you can invest directly in your favorite mutual fund through the application.

how to buy mutual funds

You can invest in mutual funds through direct plans and regular plans.

In Direct Plan there is no agent between the investor and the fund houses. To make direct investment, you have to go to the mutual fund website. The advantage of direct investing is that you do not have to pay commission to anyone. If you buy mutual funds through Regular Plan, then you have to pay additional commission to the agent.

Ways to invest in Mutual Funds

You can invest in mutual funds in two ways.

SIP

Through SIP (Systematic Investment Plan), you have to deposit a fixed amount in a mutual fund for a fixed period of time. This time interval can be from 15 days to years. If all the time period ends, then the profit is transferred to you. Investing in mutual funds through SIP is like opening a Recurring Deposit (RD) in a bank.

Lump Sum

Lump Sum In this, you have to invest a large amount of money in a mutual fund for a fixed time interval in one go. And when the time period ends then you get profit. Investing in Mutual Funds through Lump Sum Bank In Fixed Deposit (FD) is like opening.

Highest Returning Mutual Fund – Best Mutual Fund in India

Here we have provided you the list of best mutual funds giving the highest returns in which you can invest.

  • ICICI Prudential Technology Fund
  • TATA Digital India Fund
  • Aditya Birla Sun Life Digital India Fund
  • SBI Technology Opportunities Fund
  • Tata Digital India Fund
  • Axis Bluechip Fund

Advantages of Mutual Funds

Mutual Funds have many advantages such as –

  • Investing in Mutual Funds is less risky than investing in the stock market. Because to invest in the stock market, the investor needs to have deep research and a good understanding of the market. Mutual funds save you all this time.
  • There are many types of schemes available in mutual funds under which you can invest. Such as Equity, Liquid, Hybrid, Debt, Balanced etc.
  • By investing in mutual funds, your funds are managed by people who are experts in the stock market.
  • Under Mutual Fund, you can invest in many sectors such as shares, bonds, stocks etc.
  • You can invest in mutual funds with very little money. One can invest in mutual funds through SIP with a minimum amount of Rs 500.
  • Investors can withdraw the amount invested in mutual funds as per their requirement, whereas many investments do not have the facility to withdraw money before the expiry of the time period.
  • All work in mutual funds is done under the rules of SEBI, so that the rights of the investor are protected.

Disadvantage of Mutual Fund

Along with the many advantages of mutual funds, it also has some disadvantages such as –

  • There is no guarantee of return in Mutual Funds. Because there are ups and downs in the stock market, similarly there are ups and downs in mutual funds too.
  • Our investments in mutual funds are invested by the fund manager in the market, due to which we are not able to invest in the stocks of our choice.
  • You have to pay tax on mutual fund scheme, which reduces some percentage of profits.
  • When the price of a stock increases, you do not get the benefit in mutual funds because there is diversity in investing in mutual funds. And the stock whose price has increased is only a small part of your investment.

mutual fund right or wrong

Mutual Funds are perfect for long term investments. Because due to more time, the chances of loss due to the risk coming in the market are reduced. That’s why we can’t consider mutual funds wrong. Still, before making any investment, do your research or contact your financial advisor.

future of mutual funds

The future of mutual funds is very bright. If you invest only 1000 rupees every month in the form of SIP, then you can get good returns in the long run. In mutual funds, you get the special benefit of compounding. That’s why mutual funds are good for your future as well.

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Common Questions Related to Mutual Funds

How much money can be invested in mutual funds?

You can invest in mutual funds through SIP with a minimum of Rs 500.

Who Manages Mutual Funds?

Mutual funds are managed by the fund manager. Different mutual fund houses hire fund managers according to their needs.

When was mutual fund started in India?

Mutual fund in India was started in 1963 as UTI (Unity Trust of India).

Who can invest in Mutual Funds?

Both Indian and NRI citizens can invest in Mutual Funds.

What is AMC?

The full form of AMC is Asset Management Company, which brings different mutual fund schemes to the market.

What is NAV?

NAV is a unit for calculation of investment in Mutual Funds.

Last words: What is Mutual Fund in Hindi

If you do not have much knowledge about the stock market nor do you have enough time to do deep research to invest in the stock market, then Mutual Fund is the right option for you. You can invest in mutual funds through SIP. Investing in Mutual Funds is very risky.

Hope you like the article written by us What is Mutual Fund In Hindi Must have liked it. You must also share this article with your friends through social media so that they too can get the right information about mutual funds.

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