| People want to invest their money and allow their | | | | Mid-Cap - Money is invested in medium sized |
| money to grow. It is because the bank rates | | | | or small sized companies. |
| have fallen down considerably in last few years. If | | | | Balanced - A combination of short-term |
| you want to increase the value of your money | | | | bonds, preferred stocks and common stocks. |
| over a period of time, then investing movies in | | | | Equity - In this type of fund the pooled |
| instruments such as mutual funds is a wise | | | | amount of money from the public companies is |
| decision. However, it is crucial to understand | | | | invested. It is also known as stock mutual funds. |
| where and how we are investing our own hard | | | | Growth - In this type capital appreciation by |
| earned money. Someone has truly said "Spend | | | | investing in growth stocks is the main aim. |
| like a child, Offer like young and save like elderly | | | | No load - Load and No Load ar the other two |
| people". When you try saving your money, you | | | | types. |
| will need to have wisdom and lot of patience. You | | | | Exchange Traded - ETF's are traded on an |
| will also need to be very careful. | | | | exchange. |
| Stock market investments are one the best | | | | There are few other classifications like the |
| ways to save money. However, not every | | | | International, index, sector, regional or money |
| investor is well informed about the volatile market | | | | market funds. You can do some research to find |
| situation and may land up in heavy losses. Mutual | | | | the list of top ones and then invest money in |
| funds are therefore considered to be the best | | | | those. These days information is readily available |
| option where the portfolio manager does it all for | | | | on any of the newspapers, financial magazines, |
| you. There are lots of options in India, each | | | | news and finance websites etc. Mutual fund |
| offering a scheme best suited for you to invest | | | | Investments are largely affected by the volatility |
| your money, which are cost effective and very | | | | of the market activity. Inflation, interest rate |
| efficient. Investors get to purchase or sell stocks | | | | changes and the economic scenario. |
| at a much cheaper rate through mutual funds. | | | | Some of the top companies in India are: |
| You may not be able to get lower trading costs if | | | | Reliance Mutual |
| you tried selling or buying stocks on your own. | | | | ICICI Prudential |
| The biggest advantage of mutual funds is that it | | | | HDFC |
| provides diversification, in India they are classified | | | | DSP Merrill Lynch |
| into the following types: | | | | SBI Mutual |
| Open-Ended - Money raised from the | | | | Franklin Templeton |
| shareholders and invested in a group of assets. | | | | Sundaram BNP Paribas |
| Closed-Ended - The number of shares issued | | | | You will need to keep a track of latest market |
| is fixed through an initial public offering. | | | | value of mutual funds in India if you want to |
| Large-Cap - In this type monies are invested | | | | invest money. Saving is the best way to prepare |
| in large blue chip companies. | | | | for the future. |