Question 1

What is a mutual fund?

Accepted Answer

In simple words, a fund is an investor’s safety deposit much like in earlier times when people used to store their savings into a bag of rice, in today’s times that bag has come with a new name that is the Mutual Fund.

Question 2

How many types of mutual funds are there?

Accepted Answer

There are several types of funds such as:
                • Equity funds, primary investment in stocks and equity shares. Subcategories include large-cap, mid-cap, small-cap funds.
                • Debt funds
                • Money market funds
                • Hybrid funds
                • Specialized funds

Question 3

What are the benefits of investing in funds?

Accepted Answer

Investing allows us with an opportunity to earn higher returns on our investment with minimal risks. It grows the capital invested in the long-term and provides a systematic way to secure one’s future.

Question 4

Who gets your money in mutual funds?

Accepted Answer

The income generated on the funds is the interest gained on the invested amount which is fairly distributed among the investors.

Question 5

Do mutual funds generate income?

Accepted Answer

Investing in funds is a great way to build capital. Long-term investments have proven to be a successful tool to create generational wealth. Deep analysis of the market and risk tolerance can help investors to earn good returns and generate income as well.

HDFC NIFTY TOP 20 EQUAL WEIGHT INDEX FUND REGULAR PLAN GROWTH - Investment Information

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