If you want to invest your money to get some bonus and benefits without any risk then mutual fund is the perfect place to secure your investment. There are many investors who are afraid to take the risk of the volatile market of stock exchange and endow on mutual fund and bonds for a long term reservation to get a healthy return from it. There are many types of mutual fund offered by the providing company for you. You have to choose the perfect one for you according to your time span and budget. In this article, I’m trying to elaborate some of the well-known mutual fund varieties which will make your opting decision easy.
Money Market Mutual Funds
This is also known as liquid fund. In this type of finance, you have to invest in short-term mode like fixed deposit. The providing company will take the risk of money market by rolling your savings in stock exchange. If it is profitable then you don’t have to worry, but if not, then the company will compensate a little to overcome your loss.
Equity Mutual Funds
If you are opting to spend your money solely on a company by buying their stock then this is the right place for you to invest. The professionals will help you to create a well-balanced portfolio with low-risk to set a profitable deal in the end of the financial year.
Investing on gold is always a money-making concern but there are many risk factors that can come with it. Many people directly invest on gold to get a lucrative deal in a long term period. But if you want to make some quick money within five years then buying a gold support is the best option for you.
Debt Mutual Fund
If you need a small regular income from a low-risk investment, then debt mutual fund is the perfect segment for you. In this type of venture, the providing company will devote your money on debt instruments such as Government Securities, Treasury Bills, Money Market instruments, Corporate Bonds to make a secure income regularly.
Investing on mutual fund is always a risk-free matter but you have to get some knowledge about the fund terms and types before investing.