What is a Mutual Fund?

What is a Mutual Fund?

A mutual fund is an investment vehicle that pools money from multiple investors and invests it in a diversified portfolio of stocks, bonds, or other assets. The fund is managed by professional fund managers, and investors earn returns based on the fund’s performance.

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    • What is the difference between Direct and Regular Mutual Funds?

      Direct Plan: Investors buy mutual funds directly from the fund house, avoiding distributor commissions and resulting in lower costs and higher returns. Regular Plan: Investors buy mutual funds through brokers or distributors, leading to slightly ...

    • What is NAV (Net Asset Value)?

      NAV is the per-unit price of a mutual fund scheme, calculated as the total value of assets minus liabilities divided by the number of outstanding units. It changes daily based on market fluctuations.

    • Can I stop or pause my SIP anytime?

      Yes, most mutual fund houses allow investors to pause or stop their SIP at any time without penalties. However, stopping SIPs too early may impact long-term financial goals.

    • What is SIP (Systematic Investment Plan)?

      SIP is a disciplined way of investing where a fixed amount is automatically deducted from your bank account and invested in a mutual fund at regular intervals (monthly, quarterly, etc.). It helps in wealth creation through the power of compounding ...

    • What is an Exit Load in Mutual Funds?

      Exit load is a fee charged when investors redeem their units within a specified period. It varies across funds but is typically around 1% if withdrawn within one year for equity funds.