Indian Mutual Funds
A mutual fund is one which is a professionally managed collective investment scheme. It pools in money from several investors and invests in stocks, bonds, short term money market instruments and other forms of securities. The mutual fund will also have a fund manager who will trade the pooled money from time to time. The worldwide value of all the mutual funds sum up to more than $26 trillion.
Saving is an important part of the economy of any nation. With the innumerable savings and investment options available, the money is a booster. The Indian financial market presents a plethora of avenues to the investors. Although not the best as yet, there has been a fuelled growth rate in the mutual fund industry that would provide reasonable options for the commoner to invest his savings.
Investment goals vary from one individual to another. While some may prioritize security, others give importance to returns. While some plan for their child's education, some others might want to save for emergency and retirement.
Mutual Funds can be invested in many kinds of securities. The most common of these securities are cash instruments, stock and bonds with a hundred sub categories. Stock funds can be invested in shares in specific industries like technology or utilities. One can also call them sector funds. Bond funds can vary according to risk. For instance, the high-yield junk bonds or investment grade corporate bonds, type of issuers (e.g., government agencies, corporations, or municipalities), or maturity of bonds both short term as well as long term are required. Stock and bond funds can be invested in the U.S securities which are domestic funds, both U.S and foreign securities which are global funds or foreign securities with international funds.
Various Mutual Funds in India
There are several Mutual Fund Schemes in India to meet the requirements like risk tolerance, return expectations and financial position. The various Mutual Funds schemes in India are enlisted below:
- By Structure
- Open - Ended Schemes
- Interval Schemes
- Growth Schemes
- Money Market Schemes
- Close - Ended Schemes
- Balanced Schemes
- Special Schemes
- Income Schemes
- Sector Specific Schemes
- Tax Saving Schemes
- Index Schemes
Popular Mutual Funds in India
The following Mutual Funds are very popular in India:
- HDFC Mutual Fund
- JP Morgan
- Merrill Lynch
- ABN Amro Mutual Funds
- State Bank of India Mutual Fund
- Birla Sun Life Mutual Fund
- HSBC Mutual Funds
- UTI Mutual Fund
- Kotak Mahindra Mutual Fund
- Standard Chartered Mutual Fund
- Tata Mutual Fund
- Reliance Mutual Fund
- LIC mutual Fund
- Sahara Mutual Fund
Benefits of Mutual Funds
Mutual funds are extremely popular form of investment in India. Many investors go in for Mutual Fund investment because it offers remarkable benefits to the investors with limited money and time. Moreover, risks of loss are comparatively less in Mutual Funds.
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