What is a Mutual fund ?

Many people think this as a complicated subject and they stay away from knowing. we will learn today in simplified terms 

Mutual fund is a trust which pools money from different investors and invests in equities , bonds , money market instruments . Each investor gets some units after investing and gains/losses are distributed proportionately amongst investors after certain fund expenses which is called as NAV(Net Asset Value) . 

Mutual fund is most available investment option  to a common man as it offers liquidity , diversification , professional management and one start investing in mutual fund with  as low as 500/- .

Benefits 

Liquidity : Unlike other asset classes (Gold , property) Mutual funds have huge liquidity and one can sell their units at anytime when they require money.

Diversification :  Mutual funds invests in different stocks for diversification between various sectors , styles etc. It can also invest in other assets such as bonds , cash , money market instruments , commodities and other precious metals.

Professional Management :  If you  invest in Mutual funds the fund manager (person who manages your money) based on research and analysis make the decision on buying and selling . A fund manager is responsible for implementing a strategy and managing its portfolio . Fund manager monitors markets , economic trends in order to make informed decisons to investors. 

Low risk : As funds are invested in different assets and securities one can minimise the risk of loss

Investment capital : Investment is as low as 500/- a month. 


Conclusion : Mutual fund helps us in wealth creation over long term with professional management and also it helps in reaching our different financial goals .

For more details pls do write us on pcswealthadvisers@gmail.com


PCS CAPITAL were first generation entrepreneurs in financial services . It was formed with foundation stone for creating long-term wealth for the investors through various financial products like Mutual fund s , Insurance , Fixed deposits and Alternate Asset products . We help you understand your financial objectives and make appropriate plan to realise them with proper risk management. rnYou can leave your contact details for professional help in your investment journey.

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