{"id":10301,"date":"2023-10-18T15:50:31","date_gmt":"2023-10-18T10:20:31","guid":{"rendered":"https:\/\/www.tickertape.in\/glossary\/?p=10301"},"modified":"2023-10-18T15:50:33","modified_gmt":"2023-10-18T10:20:33","slug":"mutual-fund-meaning","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/glossary\/mutual-fund-meaning\/","title":{"rendered":"Mutual Fund &#8211; Meaning, Types, Advantages, Key Terms, And More"},"content":{"rendered":"\n<p>Mutual funds receive a fair amount of interest from investors as an alternative to direct <a href=\"https:\/\/www.tickertape.in\/glossary\/stock\/\">stock<\/a> investing. This is primarily because they have the potential to generate market-linked returns while also offering the benefits of diversification (depending upon the mutual fund you invest in). They can also mitigate risks to some extent as they are managed by professional fund managers.<\/p>\n\n\n\n<p>In this blog, we delve deeper into understanding what mutual funds are, different types of mutual funds, and how mutual funds are different from SIP.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_22 counter-hierarchy counter-numeric\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">You will Learn About: <\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" style=\"display: none;\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/glossary\/mutual-fund-meaning\/#What-is-a-mutual-fund\" title=\"What is a mutual fund?&nbsp;\">What is a mutual fund?&nbsp;<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/glossary\/mutual-fund-meaning\/#Return-on-equity-Highlights\" title=\"Return on equity: Highlights\">Return on equity: Highlights<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/glossary\/mutual-fund-meaning\/#Types-of-mutual-funds\" title=\"Types of mutual funds&nbsp;\">Types of mutual funds&nbsp;<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/glossary\/mutual-fund-meaning\/#Classification-according-to-structure\" title=\"Classification according to structure\">Classification according to structure<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/glossary\/mutual-fund-meaning\/#Classification-based-on-asset-classes\" title=\"Classification based on asset classes\">Classification based on asset classes<\/a><\/li><\/ul><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/glossary\/mutual-fund-meaning\/#Advantages-of-investing-in-mutual-funds\" title=\"Advantages of investing in mutual funds\">Advantages of investing in mutual funds<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/glossary\/mutual-fund-meaning\/#Disadvantages-of-investing-in-mutual-funds\" title=\"Disadvantages of investing in mutual funds\u00a0\">Disadvantages of investing in mutual funds\u00a0<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/glossary\/mutual-fund-meaning\/#Who-should-invest-in-mutual-funds\" title=\"Who should invest in mutual funds?&nbsp;\">Who should invest in mutual funds?&nbsp;<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/glossary\/mutual-fund-meaning\/#How-to-invest-in-a-mutual-fund\" title=\"How to invest in a mutual fund?\">How to invest in a mutual fund?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/glossary\/mutual-fund-meaning\/#Key-terms-in-mutual-funds\" title=\"Key terms in mutual funds&nbsp;\">Key terms in mutual funds&nbsp;<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tickertape.in\/glossary\/mutual-fund-meaning\/#Conclusion\" title=\"Conclusion\u00a0\">Conclusion\u00a0<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.tickertape.in\/glossary\/mutual-fund-meaning\/#FAQs\" title=\"FAQs&nbsp;\">FAQs&nbsp;<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-is-a-mutual-fund\"><\/span><strong>What is a mutual fund?&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/08\/TT-6-Aug-High-Return-Mutual-Fund-BB-01-1024x533@2x.jpeg\" alt=\"\"\/><\/figure><\/div>\n\n\n<p>A mutual fund is a type of <a href=\"https:\/\/www.tickertape.in\/glossary\/investment-meaning-types-how-to-invest-and-savings-vs-investments\/\">investment<\/a> vehicle that pools money from investors and invests it in securities of various kinds, such as stocks, bonds, and other assets.&nbsp;<\/p>\n\n\n\n<p>The combined profits from these investments represent the overall profit made by the fund\u2019s investors. Each individual investor\u2019s buy stake in the mutual fund schemes and take-home profit depends on the number of units of the mutual fund they hold.&nbsp;<\/p>\n\n\n\n<p>Mutual funds are managed by professional managers whose goal is to generate income for the fund\u2019s investors. Therefore, the portfolio composition of a mutual fund scheme is essential to note before investing in any mutual fund.<\/p>\n\n\n\n<div class=\"wp-block-uagb-advanced-heading uagb-block-37fca231\"><h2 class=\"uagb-heading-text\"><span class=\"ez-toc-section\" id=\"Return-on-equity-Highlights\"><\/span>Return on equity: Highlights<span class=\"ez-toc-section-end\"><\/span><\/h2><\/div>\n\n\n\n<ul>\n<li>Mutual fund investment involves pooling investments from a large number of investors and investing the pooled corpus in securities and other market-based financial products.&nbsp;<\/li>\n\n\n\n<li>They can generate returns linked to the market and have the potential to generate higher returns than fixed income.<\/li>\n\n\n\n<li>Mutual funds are classified into different types based on the asset classes they invest in, their structure, their market capitalisation, etc.&nbsp;<\/li>\n\n\n\n<li>The real returns generated by a mutual fund depend on transaction charges and expense ratios.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Types-of-mutual-funds\"><\/span><strong>Types of mutual funds&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"607\" src=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/Mutual-Fund-Miro-1024x607.jpeg\" alt=\"\" class=\"wp-image-10303\" srcset=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/Mutual-Fund-Miro-1024x607.jpeg 1024w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/Mutual-Fund-Miro-300x178.jpeg 300w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/Mutual-Fund-Miro-1536x910.jpeg 1536w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/Mutual-Fund-Miro-1024x607@2x.jpeg 2048w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/Mutual-Fund-Miro-300x178@2x.jpeg 600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n<p>Mutual funds are classified based on how they are constituted, the kinds of securities they hold in their portfolio, their investment approaches, and so on.&nbsp;<\/p>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"Classification-according-to-structure\"><\/span><strong>Classification according to structure<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ol>\n<li><strong>Open-ended mutual funds<\/strong><strong><em>&nbsp;<\/em><\/strong><\/li>\n<\/ol>\n\n\n\n<p>These mutual funds allow investors to invest in them and redeem their investments at any time.&nbsp;<\/p>\n\n\n\n<ol start=\"2\">\n<li><strong>Closed-ended mutual funds<\/strong><strong><em>&nbsp;<\/em><\/strong><\/li>\n<\/ol>\n\n\n\n<p>Closed-ended mutual funds can be subscribed to only during new fund offer (NFO) periods. Moreover, investments in them are locked in until specific maturity dates.<\/p>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"Classification-based-on-asset-classes\"><\/span><strong>Classification based on asset classes<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ol>\n<li><strong>Equity mutual funds<\/strong><strong><em>&nbsp;<\/em><\/strong><\/li>\n<\/ol>\n\n\n\n<p>Equity mutual funds invest at least 65% of their corpus in stocks of publicly traded companies. They have the potential to provide higher returns, but they also have an increased risk associated with them.<\/p>\n\n\n\n<ol start=\"2\">\n<li><strong>Debt mutual funds<\/strong><strong><em>&nbsp;<\/em><\/strong><\/li>\n<\/ol>\n\n\n\n<p>Debt mutual funds tend to invest mainly in fixed-income instruments like government securities, corporate bonds, corporate papers, etc. These can provide more steady returns than equity mutual funds and are less risky.&nbsp;<\/p>\n\n\n\n<ol start=\"3\">\n<li><strong>Hybrid <\/strong><strong>mutual fund<\/strong><strong>s<\/strong><strong><em>&nbsp;<\/em><\/strong><\/li>\n<\/ol>\n\n\n\n<p>Hybrid mutual funds invest in both stock and debt instruments in variable quantities based on the fund&#8217;s investment objectives.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Advantages-of-investing-in-mutual-funds\"><\/span><strong>Advantages of investing in mutual funds<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Some advantages of mutual funds are:&nbsp;<\/p>\n\n\n\n<ol>\n<li>Diversification&nbsp;<\/li>\n\n\n\n<li>Expert financial management&nbsp;<\/li>\n\n\n\n<li>Cost-effectiveness&nbsp;<\/li>\n\n\n\n<li>High liquidity (unless they are Equity Linked Saving Scheme (ELSS) funds that are come with a 3-year lock-in period)<\/li>\n\n\n\n<li>SIP option<\/li>\n<\/ol>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Disadvantages-of-investing-in-mutual-funds\"><\/span><strong>Disadvantages of investing in mutual funds\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Nevertheless, mutual funds do have some drawbacks as well:&nbsp;<\/p>\n\n\n\n<ol>\n<li>Transaction charges and expense ratios (i.e. the fees charged by an AMC for managing a fund); such fees reduce the real returns generated by a fund<\/li>\n\n\n\n<li>A relatively high level of dependence on good management&nbsp;<\/li>\n\n\n\n<li>The possibility of ineffective trade executions, resulting in sub-optimal gains<\/li>\n<\/ol>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Who-should-invest-in-mutual-funds\"><\/span><strong>Who should invest in mutual funds?&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/bizimages.withfloats.com\/tile\/61b5e2e02be4770001443994.jpg\" alt=\"\"\/><figcaption class=\"wp-element-caption\">Image source: <a href=\"http:\/\/www.mutualfundsinvestment.in\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Bright Vision<\/a><\/figcaption><\/figure><\/div>\n\n\n<ul>\n<li>Mutual funds are traditionally designed to be long-term investments. However, there are also short-term and ultra-short-term options available. This makes them suitable for investors with all investment horizons.<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>While risk is minimised through the presence of a fund manager and diversification, mutual funds are essentially market-linked products and therefore have inherent risks. Thus, they are only suitable for investors with a certain risk appetite.<\/li>\n<\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"How-to-invest-in-a-mutual-fund\"><\/span>How to invest in a mutual fund?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You can make a lump sum investment in mutual funds or choose&nbsp;<a href=\"https:\/\/www.tickertape.in\/blog\/what-is-sip\/\">SIP<\/a>&nbsp;for periodic investments. Once you\u2019ve decided the way you want to&nbsp;<a href=\"https:\/\/www.tickertape.in\/blog\/why-should-you-prioritise-investing\/\">invest<\/a>&nbsp;and the fund, you can invest as per the ways below:&nbsp;<\/p>\n\n\n\n<ul>\n<li>Online or offline from the mutual fund house directly&nbsp;<\/li>\n\n\n\n<li>Through your broker&nbsp;&nbsp;<\/li>\n\n\n\n<li>Through&nbsp;<a href=\"https:\/\/www.tickertape.in\/blog\/what-is-amfi\/\">AMFI<\/a>&nbsp;registered agents<\/li>\n<\/ul>\n\n\n\n<p>You can use Tickertape Mutual Fund Screener to find the best mutual funds in India. You can filter the funds based on your preferred parameters like AUM, NAV, 1-yr returns and more. You can also download the list of funds filtered as per your preferred parameters.&nbsp;<\/p>\n\n\n\n<p>The best part is you can watchlist your favourite funds to monitor them regularly. Click to learn more about\u00a0<a href=\"https:\/\/www.tickertape.in\/blog\/how-to-use-tickertape-mutual-fund-screener\/\">how to use Tickertape Mutual Fund Screener<\/a>.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Key-terms-in-mutual-funds\"><\/span><strong>Key terms in mutual funds&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"636\" src=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/MF-terms--1024x636.jpeg\" alt=\"\" class=\"wp-image-10304\" srcset=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/MF-terms--1024x636.jpeg 1024w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/MF-terms--300x186.jpeg 300w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/MF-terms--1536x954.jpeg 1536w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/MF-terms--1024x636@2x.jpeg 2048w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/MF-terms--300x186@2x.jpeg 600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n<p>Before investing in a mutual funds, it is essential to know some common terms used in the context of mutual funds.\u00a0<\/p>\n\n\n\n<ol>\n<li><strong>AMC (Asset Management Company)<\/strong> &#8211; AMC pools money from investors and invests the same in various securities.&nbsp;<\/li>\n\n\n\n<li><strong>NAV (Net Asset Value)<\/strong> &#8211; The NAV of a fund is the per-unit price of a mutual fund as determined by market forces by the end of each trading day.<\/li>\n\n\n\n<li><strong>SIP (Systematic Investment Plan) &#8211; <\/strong>This type of investment option allows you to invest a pre-decided sum of money regularly.&nbsp;<\/li>\n\n\n\n<li><strong>STP (Systematic Transfer Plan)<\/strong> &#8211; An STP provides an investor with the option to move a pre-decided amount of money from one fund to another within the same AMC over a period of time.<\/li>\n\n\n\n<li><strong>SWP (Systematic Withdrawal Plan)<\/strong> &#8211; An SWP allows investors to withdraw their accumulated funds in small quantities over a predetermined timeline.&nbsp;<\/li>\n\n\n\n<li><strong>Benchmark &#8211; <\/strong>Benchmarks are typically stock market indices that individual mutual funds compare themselves against to measure their performance. Actively managed mutual funds try to outperform various benchmarks, while passively managed mutual funds aim to match certain benchmarks.&nbsp;<\/li>\n\n\n\n<li><strong>AUM (Assets Under Management)<\/strong> &#8211; This is the total amount of assets an AMC has under its control. &nbsp;<\/li>\n<\/ol>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A mutual fund is a versatile investment choice that can help investors gain profits and build wealth by tapping into the opportunities presented by the markets. Mutual funds offer plans for every investor to meet varied short-term and long-term goals. The benefits of diversification, flexibility to invest relatively low amounts, and access to expert fund management services are some advantages of mutual funds that attract investors to them.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-uagb-faq uagb-faq__outer-wrap uagb-block-b09ae7f1 uagb-faq-icon-row uagb-faq-layout-accordion uagb-faq-expand-first-true uagb-faq-inactive-other-true uagb-faq__wrap uagb-buttons-layout-wrap uagb-faq-equal-height\" data-faqtoggle=\"true\" role=\"tablist\">\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-6fe7677c\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>How do mutual fund investors redeem their money?<\/strong>\u00a0<\/span><\/div><p class=\"uagb-faq-content\">An investor only needs to log in to their online mutual fund account, click the \u2018Redeem\u2019 button or its equivalent, and confirm the transaction. Within the specified turnaround time (generally, T+1), the redeemed sum will be credited to their bank account.\u00a0<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-ed197ae1\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>How do you profit from a mutual fund scheme?<\/strong>\u00a0<\/span><\/div><p class=\"uagb-faq-content\">An investor can profit in two ways: income from dividends on the equities a fund is invested in fund growth.\u00a0<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-a6feb62d\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>Should I invest in mutual funds?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">Mutual funds carry some amount of risk. You can invest in mutual funds, provided you have the required risk tolerance and have done your due diligence.<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-5a63ff5b\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>What is the difference between regular and direct mutual funds?\u00a0<\/strong><\/span><\/div><p class=\"uagb-faq-content\">In a direct mutual fund, investors can directly invest through their corresponding AMCs, whereas in regular mutual funds, only through intermediaries such as brokers or bankers can an investment be made. This translates to additional charges, such as brokerage, when investing in regular mutual funds.\u00a0<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-4b11aa57\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>What is the difference between SIP and mutual funds?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">A SIP is not a fund or investment vehicle. Instead, it is a way of investing in mutual funds. Investors can use SIPs to contribute a predetermined sum at regular intervals to a mutual fund to generate compounded returns over time.\u00a0<br><\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A mutual fund pools money from investors and invests it in different asset classes. Read on to learn about mutual funds, its types, and more.<\/p>\n","protected":false},"author":90,"featured_media":10302,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[1],"tags":[1929],"jetpack_featured_media_url":"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-3.png","uagb_featured_image_src":{"full":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-3.png",2086,1086,false],"thumbnail":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-3-150x150.png",150,150,true],"medium":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-3-300x156.png",300,156,true],"medium_large":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-3.png",768,400,false],"large":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-3-1024x533.png",770,401,true],"1536x1536":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-3-1536x800.png",1536,800,true],"2048x2048":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-3-2048x1066.png",2048,1066,true],"authorship-box-avatar":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-3-150x150.png",150,150,true],"authorship-box-related":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-3-70x70.png",70,70,true],"post-thumbnail":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-3-270x180.png",270,180,true],"contentberg-main":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-3-770x515.png",770,515,true],"contentberg-main-full":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-3-1170x508.png",1170,508,true],"contentberg-slider-stylish":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-3-900x515.png",900,515,true],"contentberg-slider-carousel":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-3-370x370.png",370,370,true],"contentberg-slider-grid-b":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-3-554x466.png",554,466,true],"contentberg-slider-grid-b-sm":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-3-306x466.png",306,466,true],"contentberg-slider-bold-sm":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-3-150x150.png",150,150,true],"contentberg-grid":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-3-370x245.png",370,245,true],"contentberg-list":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-3-260x200.png",260,200,true],"contentberg-list-b":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-3-370x305.png",370,305,true],"contentberg-thumb":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-3-87x67.png",87,67,true],"contentberg-thumb-alt":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-3-150x150.png",150,150,true]},"uagb_author_info":{"display_name":"Anjali Chourasiya","author_link":""},"uagb_comment_info":0,"uagb_excerpt":"A mutual fund pools money from investors and invests it in different asset classes. Read on to learn about mutual funds, its types, and more.","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/10301"}],"collection":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/users\/90"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/comments?post=10301"}],"version-history":[{"count":2,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/10301\/revisions"}],"predecessor-version":[{"id":10678,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/10301\/revisions\/10678"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/media\/10302"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/media?parent=10301"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/categories?post=10301"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/tags?post=10301"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}