Mutual fund-The best investment option.

What is Stock Market?

What is the Sensex and Nifty?

What is Mutual Fund?

You always wanted to know answers of many questions related to stock market. You always used to think investing in Stock Market. But you did not get opportunity to invest in the Stock Market. And you have no idea about how to invest in Stock Market. You have overheard someone talking about  stock market is a gamble. You have read every now and then in Newspaper that The sensex have surged 1000 points or fallen down 1000 points. May be, you have heard about famous stock market crash of 2008. It is because, you know nothing about Stock Market and it's behaviour.

The positive thing about the Stock Market is that it gives amazing results over a period of time. As you know that there is no gain without risk. If you want more profit then you have to always take more risk. The same thing may be applied to the Stock Market. Investing in Stock market is also a mind game. You must have more knowledge before investing in stock market. If you want to invest in the Stock market, you should have following things-

1. A Demat account in NSDL or CSDL.
2. A Trading account in a brokerage house.

Mutual Fund

But if you do not want to take risk and have time for knowledge and research. There is a safer tool present in the market to invest in Share market. That Investment tool is Mutual fund. You have also seen its add in TV and Newspaper. There is a fund manager in every Mutual fund who takes decision and invest in share market. They have basic infrastructure like professional fund managers, investment research, business analysis and Stock market analysis for you. For all of these facilities they charge you in the form of Entry load and Exit load.
Mutual fund companies accept funds from investors and then they invest it in Stock market. Every mutual fund has a Fund Manager, who takes decision where to invest your money to get maximum returns. He has expertise to take risk. He has a staff of professionals who every time analyses stocks  and its behaviour. In this way they get maximum returns.
In return for your investment, Fund houses allot you Units according to their market rates. Your investing amount is divided by the current value of N.A.V.(Net Assets Value) and you are allotted the no. of units.
For example: If your Fund is 10000 rupees and NAV is Rs.10 then the no. of units will be 100.

Open ended Mutual Fund:

This type of Mutual fund is very popular among investors. It has no lock-in period. You are free to Enter or Exit at any time. If you get good returns you can exit the funds. You are given current market rate of NAV.

Close ended Mutual fund:

Your money is locked for three years in this Fund. Tax saving ELSS fund is a kind of this fund.

There are so many funds available in the market. Some of them are as follows-

• Large-cap fund.
• Mid-cap fund.
• Small-cap fund.
• Blue-chip fund.
• Hybrid fund.

Growth or Dividend Options.

There are two options available for each Funds, Growth or Dividend.

In my view Large cap fund with Growth option is fit for you.