Mutual Fund
Mutual Funds can be defined as money pooled by a large number of people (Investors) having one common investment objective. The money collected under the scheme, usually run by an asset management company, is then invested in equities, bonds, money market instruments, and other securities by professional fund managers of the Mutual Funds. The portion of holding of the fund is provided as ‘Units’ to each investor in proportion to the amount invested by them. The income generated from the scheme is distributed among all the investors in proportion to their investment by calculating Net Asset Value or NAV.
Mutual Fund earns dividends on the stocks and interest on the bonds according to their investment in the portfolio. The annual return is given to the mutual fund portfolio owner as distribution at the end of the year. This distribution can be out-checked or reinvested to purchase an additional share. Mutual Fund differs from stock as it does not provide voting rights to its holder as purchasing a share of a mutual fund means procurement of part of portfolio value. Net Asset Value (NAV) denotes the performance of a particular scheme of a Mutual Fund. NAV can be defined as the market value of all the securities (equities, bonds, money market instruments, and other securities) held by the scheme.
Top 10 Best Investment Options in India 2023
The term ‘Finance’, which seems to be complicated to many youngsters is actually very easy to understand. It is nothing but a way someone manages his/her money in such a manner that all the expenditures are met without actually draining out the whole amount. Financial experts technically define Finance as a system of creating, managing, and investing money with a motive to make the best use of the available resources.
It’s important for oneself to set future goals. Finance is a lifeblood of a modern economy and therefore, to fulfill any goal, a person needs money. This fact of life bounds you to set your goals in terms of finance. It is, therefore, important to have some future financial goals to accelerate the saving and channelising the same to earn out of it.
Investment is pooling off money to gain more benefits after a specific period. It is a technique to increase the capital employed after a specific time. Investment is the placement of capital in the expectation of deriving income or profit from its use or appreciation.
These are the Top 10 Best Investment Opportunities
1. Real Estate Property
2. Public Provident Fund(PPF)
3. Mutual Fund
4. Stocks/Equities
5. Bonds
6. Certificate of Deposits
7. National Pension Scheme(NPS)
8. Money Market Accounts
9. National Saving Certificate
10. Post Office Monthly Saving Scheme