1 / 8

What are mutual funds & its types? | Lic Mf

Mutual funds are investment vehicles that pool money from a large number of individual investors to purchase a diversified portfolio of securities, such as stocks, bonds, and money market instruments. For more details: https://www.licmf.com/

arunak81
Télécharger la présentation

What are mutual funds & its types? | Lic Mf

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. LIC MF

  2. What are mutual funds & its types? Mutual fundsare investment vehicles that pool money from a large number of individual investors to purchase a diversified portfolio of securities, such as stocks, bonds, and money market instruments. The goal of a mutual fund is to provide a way for individual investors to access a professionally managed, diversified portfolio with a relatively small amount of money. There are different types of funds- Equity Funds, Debt Funds, Hybrid Funds, Index Funds & Money Market Funds.

  3. EQUITY FUNDS An equity fund is a type of mutual fund that invests primarily in stocks or equities. The objective of an equity fund is to provide long-term capital growth to investors by investing in a diversified portfolio of stocks. Equity funds are generally considered to be higher risk investments compared to fixed income securities, as the value of the stocks in the fund can fluctuate widely in response to changes in the stock market or individual company performance. However, they have historically provided higher returns over the long-term and can be an attractive investment option for those with a long investment horizon.

  4. DEBT FUNDS A debt fund is a type of mutual fund that invests primarily in fixed income securities, such as bonds, Treasuries, and other debt instruments. The objective of a debt fund is to provide regular income to investors through interest payments from the bonds in its portfolio. Debt funds are generally considered to be less risky investments compared to equity funds, as the returns from the bonds in the portfolio are generally more predictable and stable. However, the value of the bonds can still be affected by changes in interest rates and the creditworthiness of the issuer.

  5. HYBRID FUNDS • Hybrid funds are a type of mutual fund that invests in a mix of both equities (stocks) and fixed income securities (bonds and other debt instruments). • The objective of a hybrid fund is to provide a balance between income and growth by diversifying the portfolio across different asset classes. • Hybrid funds can offer a more balanced investment option compared to pure equity or pure debt funds, as they seek to provide both income and growth to investors. The allocation between equities and fixed income securities can vary depending on the fund's investment objective, but typically ranges from 40-60% in equities and 60-40% in fixed income securities. • The risk and return profile of a hybrid fund depends on the specific allocation of assets and the types of equities and fixed income securities in the portfolio. It's important to consider the fund's investment objectives, portfolio composition, and fees before investing in a hybrid fund.

  6. INDEX FUNDS • Index funds are a type of mutual fund that aims to replicate the performance of a specific market index, such as the S&P 500, the NASDAQ, or the Dow Jones Industrial Average. The portfolio of an index fund is designed to closely match the composition and weighting of the underlying index. • The objective of an index fund is to provide investors with returns that are similar to the market, with relatively low management fees. By investing in an index fund, investors can gain exposure to a broad market or specific sector, without having to actively pick and choose individual stocks. • Index funds are considered to be low-cost and passive investment options, as they typically have lower management fees compared to actively managed funds. They can be a good choice for investors seeking a low-risk investment that provides exposure to a specific market or sector.

  7. MONEY MARKET FUNDS • Money market funds are a type of mutual fund that invests in low-risk, short-term debt securities such as Treasury bills, commercial paper, and certificates of deposit. • The objective of a money market fund is to provide a stable source of income and preservation of capital, while maintaining liquidity and ease of access to the invested funds. • Money market funds are considered to be low-risk investments and are often used by individuals and institutions as a temporary holding place for cash. The returns from money market funds are generally lower than those from equity or bond funds, but they are also less volatile and have a lower risk of loss of capital. • It's important to note that money market funds are not guaranteed by the Federal Deposit Insurance Corporation (FDIC) and there is still a small risk of loss of capital. • Additionally, the returns from money market funds can be affected by changes in interest rates and the creditworthiness of the issuers of the securities in the fund's portfolio.

  8. THANK YOU https://www.licmf.com/

More Related