| Mutual funds help you raise money and earn very | | | | income securities, government bonds, debentures |
| good returns on your investment by investing it | | | | etc. The idea is to safeguard your investment and |
| across different securities and companies | | | | you can expect modest but fixed returns. The |
| depending on the investment opportunity. Mutual | | | | NAV(Net Asset Value) of a debt fund does not |
| funds are invested in diversified sectors of the | | | | fluctuate like an equity fund |
| economy depending upon the risk appetite of the | | | | Liquid Fund: They are short-term debt funds. It is |
| investor. For instance, a pure growth equity fund | | | | an ideal mode of investment for those who are |
| invests in equity sectors like infrastructure, | | | | interested in keeping their funds for a shorter |
| telecom, consumer durables etc. A debt fund | | | | duration - for seven to eight days. |
| invests in government bonds, short term | | | | Balanced Fund: This type of mutual fund involves |
| instruments like commercial papers, debentures of | | | | investment in equity and debt. 50 to 75 percent |
| companies etc. | | | | of the investment is done in equity whereas the |
| There are several types of mutual funds. Here | | | | remaining is done in debt. One must be aware as |
| are they: | | | | how to he has to go about with stocks to bonds |
| Equity/Growth Fund: In this form of mutual fund, | | | | ratio to be free from any risk and earn profit. |
| the investment is done only in equities also known | | | | Since mutual funds are subjected to market risks, |
| as stocks. The longer a stock is retained, the | | | | involving in a risky business can be a little |
| more will be the profit. The net asset value of the | | | | dangerous if you are very careful about your |
| equity fund changes with the market trend. | | | | investments. How about going for a business that |
| Sector Fund: A mutual fund that invests in shares | | | | frees you from the worries of risks? |
| of firms working in definite industries is known as | | | | I am talking about two tier affiliate marketing, it |
| sector fund. An infrastructure fund would invest | | | | not only takes you away from the troubles of |
| only in infrastructural companies. | | | | risks involved in investments and makes you all |
| Equity-link Savings Schemes: It is a close-ended | | | | the more confident about earning regular that too |
| fund which means you will only be able to en-cash | | | | by staying home. More and more people are |
| the money after the investment period is over. | | | | becoming a part of this business and experiencing |
| Dividends are without tax. | | | | how this type of affiliate marketing can help them |
| Debt Fund: Debt funds are invested in fixed | | | | earn consistent profits without risks. |