Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.
Risk appetite differs from one person to another. For a person with mediocre risk taking capacity, Mutual Funds is an experimental investment avenue. The main focal point of Mutual Funds is ‘not to lay all the eggs in one basket’, to be precise the most advantageous aspect of MF is diversification. Mutual Funds make it possible for individual investors to achieve more diversification and with less of their effort than compared to investing in individual stocks.
In Hedge Equities, Funds are professionally managed and backed by an investment research team. The Research team scrutinizes all the companies based on their performance and make investments in them by taking the client’s needs into account. Mutual Funds can be seen as an unperturbed investment with large amount of transparency and flexibility, amplified by high tax benefits.