| There are lots of misconceptions floating in common | | | | revenue and finally the revenue goes back to the |
| people's mind in India. They think mutual funds are | | | | investors. |
| unapproachable, difficult to understand and not for | | | | Based on 3 (Three) basic things, experts classify this |
| him/her. Wait a while, be ready to amaze by knowing | | | | financial instrument under following categories - |
| the things like - thousand of investors already share | | | | 1. By scheme structure |
| their financial goals through mutual funds and they are | | | | 2. By scheme objective |
| not finance expert; they are just simply common | | | | 3. By special schemes like Tax saving schemes. |
| man like me and you. | | | | Here is a small list of the most popular Mutual Fund |
| The main concept - using common financial | | | | available in India - |
| instruments such as - shares, debentures and other | | | | 1. ICICI Prudential S.M.A.R.T (Structured Methodology |
| instruments; organizations collect money and invest it | | | | Aiming at Returns over Tenure) Fund |
| into the capital market. The revenue earned from | | | | 2. ICICI Prudential Tax plan |
| those investments distributed to its unit holders with | | | | 3. Baroda Pioneer Gilt Fund |
| their accrued proportion of units. A mutual fund is | | | | 4. HDFC Index Fund - Sensex Plus Plan |
| nothing but a basket which contains some | | | | A common person might not have enough |
| investment plans or you can say investment | | | | knowledge about the stock market, status of the |
| instruments. | | | | market also may not be aware of how securities |
| Now the question is why mutual fund? The answer is | | | | works; If you are not being able to decide where to |
| it is diversified, professionally managed and mutually | | | | invest and how to invest, how to buy shares, how |
| beneficial investment instrument with a reasonably | | | | to track them and make the profit - this instrument |
| low cost. How it works? Well, conceptually it is | | | | will help you. |
| working like a cyclic model. Investors invest their | | | | Each mutual fund has different investment and return |
| money through fund manager and fund manager will | | | | scheme and unique investment aspiration; you can |
| invest that money on securities and generates | | | | find your own between them. |