Mutual Funds

Money making is an art as well as a science. Most people ignore this important aspect of life due to paucity of time, lack of knowledge, or simply being lazy in doing research. 

Mutual Funds are among the most popular investment avenues available to you to retire rich.

To facilitate a proper distinction between mutual funds and to bring uniformity among similar scheme categories, SEBI decided to categorize mutual funds  as follows:

Direct Funds:

Funds that are offered directly by the fund house without the involvement of any third party like a broker or any other intermediary. These funds are characterized by a low expense ratio due to the absence of any third-party commissions. One can earn an extra return of up to 1.5% per annum by investing in direct funds.

A mutual fund is a trust that pools money from investors who share common investment objectives and invests the pool of money on their behalf. The income generated from the fund is distributed among the investors after adjusting for expenses  and other levies.

A mutual fund invests your money in a basket of investments like shares, bonds, gold, depending upon the type of fund you choose. Mutual Funds help the investors to have a diversified portfolio of assets which helps to reduce the overall risk.