Mutual Funds


Mutual funds are investment vehicles where multiple investors pool their money, which is then managed by professional fund managers. These funds invest in various asset classes such as equities, bonds, gold, and other securities to generate returns.

Types of Mutual Funds

  1. Equity Mutual Funds – Invest primarily in stocks.
  2. Debt Mutual Funds – Invest in fixed-income securities like bonds.
  3. Hybrid Funds – A mix of equity and debt investments.
  4. Index Funds/ETFs – Track a specific market index.
  5. Sectoral/Thematic Funds – Focus on specific industries or themes.

Benefits of Mutual Funds

  • Diversification – Reduces risk by investing in multiple assets.
  • Liquidity – Easy to buy and sell.
  • Professional Management – Managed by experienced fund managers.
  • Affordability – Start investing with as low as ₹500.
  • Tax Benefits – Some funds offer tax exemptions under Section 80C.

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Indian Mutual Funds Performance

SR WEALTH SUGGESTIVE FUND

Equity Mutual Funds
  • SBI Bluechip Fund (1M: 2%, 1Y: 12%, 3Y: 15%)
  • Axis Growth Opportunities Fund (1M: 3%, 1Y: 14%, 3Y: 17%)
Debt Mutual Funds
  • ICICI Prudential Short Term Fund (1M: 1%, 1Y: 5%, 3Y: 8%)
  • SBI Magnum Medium Duration Fund (1M: 2%, 1Y: 6%, 3Y: 9%)
Hybrid Funds
  • HDFC Balanced Advantage Fund (1M: 2%, 1Y: 9%, 3Y: 12%)
  • Kotak Balanced Advantage Fund (1M: 2%, 1Y: 8%, 3Y: 11%)
Index Funds/ETFs
  • HDFC NIFTY 50 Index Fund (1M: 2%, 1Y: 11%, 3Y: 13%)
  • SBI NIFTY 50 ETF (1M: 3%, 1Y: 12%, 3Y: 15%)
Sectoral/Thematic Funds
  • ICICI Prudential Technology Fund (1M: 3%, 1Y: 18%, 3Y: 22%)
  • Nippon India Pharma Fund (1M: 2%, 1Y: 17%, 3Y: 20%)
Mutual Fund FAQs

1. What is a mutual fund?

A mutual fund is a pooled investment managed by professionals that invests in stocks, bonds, or other securities.

2. How do mutual funds work?

Mutual funds collect money from investors and use it to purchase a diversified portfolio of assets.

3. What are the types of mutual funds?

There are equity funds, debt funds, hybrid funds, index funds, and sector funds, among others.

4. What are the advantages of investing in mutual funds?

Mutual funds offer diversification, professional management, liquidity, and ease of investment.

5. Are mutual funds risky?

Mutual funds have varying levels of risk, depending on the type of fund and market conditions.

6. How do I choose the right mutual fund?

Choose based on your financial goals, risk appetite, and investment horizon.

7. What is NAV in a mutual fund?

NAV (Net Asset Value) is the per-unit price of a mutual fund, calculated daily.

8. How do mutual funds generate returns?

Returns come from capital appreciation, dividends, and interest earned from investments.

9. What are the expenses of a mutual fund?

Mutual funds charge expense ratios, transaction fees, and exit loads.

10. How can I invest in mutual funds?

You can invest through financial advisors, online platforms, or directly with mutual fund companies.