What Is Mutual Funds 

Mutual Funds is a pool on money managed by a professional fund manager. In this , fund is collected from a number of investors and the same is invested the in equities , bonds, money market instruments or other securities.

How Is The income Dividend ? 

The income from the investment is distributed proportionately amongst the investors after deducting all the expenses.

So , these are the points that you must remember before making an investment ? 

Performance Of the Fund

Before investing , throughly check the performance of the fund in which you want to invest . compare the 3 - 5 years performance of the funds as well as the consistency of the fund.

Risk Factor

Mutual funds are subject to risks. So before investing the risk factor of the particular mutual fund must be accessed throroughly . You must also be aware of the amount of risk that you can afford.

Consistency

A consistent fund is always a better option for the long - run . These funds give you snall but consistent returns every year. However, volatile mutual funds are good for good for the short term as they are highly fluctuating in providing returns.

Net Asset Value 

Funds with Higher NAV can be expensive yet give less gains . But these funds are more reliable than the lower NAV funds . The lower NAV funds are cheaper and can give you good returns too.

Assets under Management ( AUM) 

Funds With larger AUMs have large number of investors funds corpus at their disposal. Thus it becomes difficult for funds with larger AUMs to enter or exit from investing in particular entity. However, the former ones are generally more stable compared to funds with low AUMs.

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