Whenever you imagine an amusement park, what comes to your mind first, a toy train or a roller coaster ride? Perhaps the roller coaster rides, which are the biggest attraction of any Amusement park and which create a perception among the people about these parks. 'Mutual Funds' have also created a similar belief that they invest only in stocks and hence are risky. Mutual funds offer many options keeping in mind the different needs of the investors. Some investors want high returns which only stocks can give you. Such investors can achieve their goals by investing in Equity Mutual Funds, which are one of the best long-term investment options. It is important to note that due to its exposure to the stocks of different companies, investing in such mutual funds also carries the risk of high volatility, volatility.
There are also some other types of mutual funds which do not invest in equities. Invests in bonds issued by government entities, banks, companies and other money market instruments (bank CDs, T-bills, commercial paper), which carry relatively low risk but also lower returns than equity funds. These funds prove to be a great alternative to traditional investments like bank FDs, PPFs and if you are looking for an investment that delivers efficient tax returns along with better returns than traditional investments, Debt Mutual Funds are a good choice for achieving such financial goals. are proved.|