MUTUAL FUND

Mutual fund is mainly related to college students. Usually, nowadays, youngsters follow the spend first and save later policy. According to the history, India is a saving country. The strength of India is saving and education. When a person's income becomes the main source of the family then a portion of his income will be spent on the daily routine. With the remaining amount, he has to plan the savings. With the remaining amount, you have to fill in the short requirements. If you have the amount and you want to regain it within some years then you can put Recurring deposits ( RD ) in banks or you can go through mutual funds SIP. 

For the medium-term requirements, under the mutual funds category, you will get a balance advantage fund. In mutual funds, you can go through SIP (Systematic investment plan). For the long-term plan, you can go through a long-term high-risk high return policy. The benefit of this is, that your money will be worked as you wish in some source. 

Follow the investment discipline. Review your plans periodically. Take the help of distributors or financial advisors. Make the proper planning and start your investment. 

Every person has different financial plans. If you're the RD, your income will add the interest during the withdrawal. 

MEDIUM-TERM PLANS:

For the medium-term requirements, it is not good to go through RD. 

Under medium-term requirements, we will have the funds like a Balanced advantage fund.

NATURE OF BALANCED ADVANTAGE FUND:

The fund manager himself is responsible for all kinds of activities. As time passes he himself reduces the equity portion of the mutual funds and increases the death portion or arbitrary portion. When the market is increased up to 10% then the balanced advantage fund will increase up to 6- 7 %. If 10% of the market level is decreased then 2-3% or sometimes 6% of the balanced advantage fund will decrease. So its upside is capped and the downside is protected. 

LONG TERM PLANS:

An equity mutual fund is the best fund for long-term plans. Equity funds timeline is up to 10-18 years. It belongs to the high-risk and high-return category. Planning is very important in investment. 

TAX SAVING IN MUTUAL FUNDS:

Under section 80C you are locked up for certain years. You can withdraw money after a certain period of time. For a certain financial year, you will get the tax benefits. The maximum limit is one and a half lakhs. The income that comes from mutual funds will also have taxes. The long term has a 10% tax and the short-term has a 15% tax. 

ENTRY AND EXIT IN MUTUAL FUNDS:

KYC is important for every kind of investment. Pan card and Adhar card should have the same name and spelling. Open the account on the National Stack Exchange mutual fund platform. If you withdraw within one year then 1% of the amount is gone to the mutual fund company. There are no charges after one year. 

DISCLAIMER:

Stock market and mutual fund investments are subject to market risks. There is no assurance and guarantee of the returns neither the principal nor appreciation on the investments. Kindly seek advice from your financial planner before investing. User description advised. The information presented here is for educational purposes only. It has not been prepared with regard to the individual needs, objectives, or financial situation of any particular person.

CONCLUSION:

Mutual funds are really helpful. It will help beginners to set a business mind. This information will help to know about mutual funds.