• Snigdha Shubham

A mutual fund is a portfolio of stocks, bonds, money market accounts and other investments that are managed by financial professionals. A mutual fund provides investors with the opportunity to functionally invest in many different companies with a single purchase. Mutual fund provides a readymade option to households for portfolio diversification as well as relative risk aversion through collecting and investing their savings in different risk-return profile instruments. Its performance depends on the performance of underlying portfolio. If one or more schemes perform badly in the portfolio, that can effect or hurt the investment decisions of investors and may get them out from the scenario of wealth creation process. For saving investors’ money from such a hazard, it becomes necessary to evaluate the performance of mutual fund portfolio so that investors can take/judge their investment decisions rationally. This evaluation would help in checking the prime idea of “putting all eggs in different baskets” behind mutual funds and guessing that how far this idea is doing well for investors. Investing in a diverse portfolio can make you a more resilient investor because Before making your investment you should make sure you’re comfortable with investing in the long-term. This could mean not touching it for five years or more. You’ll also need to find an account you can afford to invest in. Aside from fees, some accounts have minimum investments that range in scope from zero to $3,000. You’ll also have to take your own age into consideration since the closer you are to retirement age the lower your risk tolerance. Mutual funds are categorized based on the nature of their investment. • Money market funds - Money market funds invest in short-term bonds issued by governments or corporations. Bonds are small loans that allow investors to make a profit off interest payments. Money market funds are low risk because the can only make high-quality investments. • Bond funds - Bond funds come with greater risk because they generally seek a greater reward. That said, the risk and rewards can vary drastically from bond to bond. The fund that works best for you will depend on your goals and the investments you’re able to make given your economic situation. • Stock funds - Stock funds invest in companies. Here are some examples: • Growth funds: These focus on stocks that show potential for a high return on investment as opposed to dividend payouts. A dividend is a portion of a company’s profits owed to investors paid on a regular basis. • Income Funds: These funds generate their profits from regular dividend payments. • Index Funds: These funds mimic the performance of particular indices such as the Dow Jones Industrial Average and the S&P 500. • Target-date funds - Using a mix of stocks, bonds, and investments, target-date funds shift in accordance with the fund’s overarching goals. Known as lifecycle funds, these investments are designed to mature by particular retirement dates.

Mutual Funds

"A detailed study of Mutual Funds", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.9, Issue 3, page no.e1-e9, March-2022, Available :http://www.jetir.org/papers/JETIR2203401.pdf

"A detailed study of Mutual Funds", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.9, Issue 3, page no. ppe1-e9, March-2022, Available at : http://www.jetir.org/papers/JETIR2203401.pdf