In mutual funds, the money gathered from different investors are pooled together and are invested in a wide array of investments like equity, debt, bonds, government securities and ETFs. Funds managed by professional fund managers or portfolio managers. These are important for individuals, so they will better understand the details of any type of financial instruments that are available in the market before making any type of investment decisions. Mutual fund investments will allow investors for investing even small amounts of money. Therefore, investment in mutual funds are risk free, but they are well managed funds that can give the investors regular and high returns than what an investor can get from a bank through fixed deposits, savings accounts, etc. Mutual funds are not always risk free, but if they are managed well the funds can give investors regular or high returns than what once can get from a bank through fixed deposits or a savings account.

Mutual fund investments are invested directly in diversified securities that are spread across a wide section of industries and sectors. Diversification will generally reduce risk because all the stocks may not move in the same direction at the same time. An investor can check all the key details like the value of investment and current portfolio of a mutual fund when required. Investors can also invest in mutual fund online by visiting different websites. With the different advance in technology a customer will be able to invest in mutual funds through a mutual fund app which is available for investors, that make the process easy and simple for the customers. An investor will be able to choose the type of mutual fund they would want to invest in depending on the investment goals. Some investors will want capital protection and safe returns, but others may have a strong risk appetite and wish for getting high returns. Investors can also opt for growth funds, income funds, liquid funds and balanced funds depending on their financial goals.

Types of mutual fund investments:

1. Open ended:

Open ended mutual fund schemes are open for investment at any point of time. They offer liquidity to the investors since the units can be bought and sold freely.

2. Close ended:

Close ended mutual fund schemes are open only for a short period of time. Once the scheme is closed, fresh investments will not be made. In order to provide liquidity, these units are listed on stock exchanges and investors can trade in them.

3. Interval:

Interval schemes are the variation of close ended schemes that are reopened for redemption for a limited period of time during a scheme’s tenure. Investors are given the option for selling the units back to the fund during this period.