Mutual fund A mutual fund is a professionally managed investment vehicle that pools the funds of numerous investors to buy securities. These investors could be retail or institutional in nature.When opposed to investing directly in individual securities, mutual funds have benefits and drawbacks. Mutual funds’ main benefits include economies of scale, greater levels of diversification, liquidity, and management by experienced investors.

However, mutual fund investors must pay a variety of fees and costs.

Identifying your objectives and risk tolerance is the first step to successful investing in mutual funds. To do this you need assistance of a financial expert and this is where I help you. After this step is completed, I help you chose the right mix of mutual funds for you keeping in mind the time horizon and tax implications. From time to time, I also help in rebalancing your portfolio. Following are the types of mutual funds which make a portfolio:

Equity fund – A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity.

Debt Fund – A debt fund is an investment pool, such as a mutual fund or exchange-traded fund, in which the core holdings comprise fixed income investments.

Balanced Fund – A balanced fund is a mutual fund that contains a stock component, a bond component and sometimes a money market component in a single portfolio.

ELSS Fund -Many mutual fund investors are hunting for the best equity linked saving scheme or elss to save taxes under section 80c of the income tax act.

Small Cap Funds – These mutual funds select stocks for investment from the small cap category, which includes all stocks except largest 250 stocks (by market capitalization).

Large Cap Funds – These mutual funds select stocks for investment from the largest 100 stocks listed in the Indian markets (highest market capitalization).