Did you know more than six million new investors invested in mutual funds in 2022 and retail investors make up 91.1% of total mutual funds accounts in India? These statistics indicate why mutual funds are popular among investors.
In case you are a first-time or novice mutual fund investor, here is all you need to know.
Understanding Mutual Funds
A mutual fund is a pool of money from several retail investors with a common investment objective. It is professionally managed by a fund manager who invests this money in a portfolio of stocks, bonds, and other market securities. The purpose of mutual funds is to maximize returns and minimize risks.
Benefits of Mutual Funds
Mutual funds today offer a host of benefits:
? Ideal for Stock Market Beginners
If you are a conservative or new investor who wants to gain entry into the stock market without taking much risk, then mutual funds are a good option. You can start with a small amount and then invest more as you gain confidence.
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