Establishing an investment plan is an essential first step toward successful investing. Understanding the investments which are best suited to help you achieve your goals is equally important. Mutual funds can fit well into either your long- or short-term investment strategy, but the success of your plan depends on the type of fund you choose. Because all investments in funds come with some level of risk, it is important to have realistic expectations about the risk vs return potential and choose funds which are best suited to your individual needs.
Mutual Funds Introduction
A Mutual fund is a pool of money where money is invested by Corporates / Institutions and Individuals. People who buy shares of a mutual fund are its owners or Unit Holders. Mutual Funds are managed by professional investment managers who are responsible for investing this money into the different asset classes depending on the Investment Objective of the Fund. A mutual fund makes money for its Unit Holders in two ways: dividends, or capital gain (rise in the value of each Unit). A Fund can also lose money.
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