A mutual fund is considered as one of the best options in the world of investment which can help one fetch the best returns in short as well as long term. In the market, one can find different mutual funds offered by different companies which they have created with special research and for a special purpose. In a mutual fund, the investor can invest a lump sum amount or can also go for the same by way of instalment where every month some amount is deducted from his account and same is credited to the company which invests the amount in share market.
Advantages of mutual fund
A mutual fund is a tool in which one can invest small amount such as 500 per month also which can grow over a period and help one achieve his short or long term goals. In this market, there is also a special type of mutual fund which is called ELSS. Among the best performing investment funds the ELSS funds always top as the investor here cannot withdraw the amount till three years from the date of investment. After investing the amount, the client is provided with a folio number and unit prices as well as a number of units he has got.
One can invest in mutual funds with a fixed amount in one shot or can also go for the investment via monthly instalment option which is known as a systematic investment plan. Before investing the amount, one needs to ask an expert to have the best investment option in a mutual fund or go for some research on the internet. There are dividend and growth options provided to every fund and one can invest as per own choice of option.
Which mutual fund can be the best one?
There are ample options available in the mutual fund, and one can find the best performing investment funds as per his requirements. The investment is made in small caps, large caps and mid-cap companies by the fund manager and each of these segments can have different visions and performance. The fund manager is a professional expert deployed by the concerned AMC who manages the fund and keeps an eye on the movement of the market. In case he senses any risk he can switch the fund from one segment to another or invest it in shares of a particular company.
How to invest in MF?
Investing in MF is not at all a tough job. The AMCs offer options where the investment can be made via online or offline mode. The investor needs to provide a few of his documents before investing the amount. He also needs to read all the required details of a particular fund before investing. He needs to know if the said fund is open-ended or closed one. In the open-ended fund, one can withdraw the amount at any point of time which is not possible in the close-ended funds where the amount needs to be held for a given time frame.