MUTUAL FUNDS
INVESTING
FOR BEGINERS
"NOTHING IS EVER TOO LATE"
WHAT IS MUTUAL FUND?
A mutual fund is a pool of money managed by a
professional Fund Manager.
How It Works?
Investors Mutual
Fund
pool of fund Investing
money manager
Why Invest In Mutual
Fund?
Diversification:
Professional management
Liquidity
Less Risk than direct
stock investing
High return than FD's and Savings
accounts
TYPES OF MUTUAL FUND INVESTING
There are many different types of mutual funds
1. Equity funds: These funds invest in stocks, which are shares of
ownership in companies. It can classify into large, mid and small-cap
2. Debt funds: These funds invest in bonds, loans made to companies or
governments.
3. Hybrid funds: These funds invest in a mix of stocks and bonds.
4. Index funds: These funds track a specific market index, such as the S&P
500.
4 MUTAL FUND CATEGORIES
1. Large Cap Mutual Fund: Investing in top 100 companies example: TCS,
HDFC, Reliance, etc.
2. MID-Cap Mutual Fund: 101-201
3. Small-Cap Mutual Funds: 201+ onwards
4. Flexicap- Investing in large, mid and small-cap.
BEST MUTAL FUND INVESTMENT
STRATEGY
Conservative Balanced Aggressive
Investor Investor Investor
Less risk taking (10%) Moderate risk-taking High risk-taking (50%)
(20%)
80%- Large Cap 20%- Large Cap
50%- Large Cap
10%-Flexi cap 20%-Flexi cap
20%-Flexi cap
5%- Mid cap 30%- Mid cap
20%- Mid cap
5%- Small cap 30%- Small cap
10%- Small cap
FACTORS TO CONSIDER WHEN CHOOSING A
MUTUAL FUND:
44 Asset management companies manage 1000s of mutual schemes
The expense ratio: The expense ratio is the amount of money that the fund charges in fees
each year. A lower expense ratio means that you will keep more of your investment
returns.
The fund's track record: How has the fund performed in the past? A good track record is
not a guarantee of future success, but it can be a helpful indicator.
The fund's management team: Who manages the fund? Do they have a good track record?
Are they experienced?
HOW TO INVEST IN MUTAL FUND
2 Ways to Invest in Stock Market
1. Lumpsum
2. SIP(Systematic Invest Plan)
Lumpsum SIP
Platform to Invest in Mutual Fund
Learn First Then Invest
