3 Replies to “Could you plese suggest me some ideas about mutual funds. What is the role mutual funds in BSE and NSE.?”

  1. I just recently started taking an interest in the mutual funds in my husbands 401K plan. We both were ignorant about it all. What I have learned that has made the biggest difference is diversifying! Since I have read some books and applied what I’ve read about spreading out our investing into Large Cap, Small Cap., Mid Cap., International Funds,and a couple of others has changed our money growth by thousands. Try getting some info from daveramsey.com and visit MyTMMO.

  2. YEs.. mutual funds are an indirect mode of investing in a stock exchange.. since one is not directly purchasing the shares of various companies. but when anybodsy purchases a mutual fund unit.. he gets his investement diversifed in various shares types acroos the spectrum … more over this is nteh best mode of investing.. since the investment in stock directly may be quite risky as the market is volatile.. however if the markets crash … you also stand to loose.. since the NAV( i hope u know it)..will also like wise fall .. today m f have a variety of scemes depending upon the the kind of risk averse you are.. fix income.. equity… diversified., debt …. balanced and so on.. hope this best answers your question….

  3. As an individual you can not purchase large number of stocks. Also if you invest heavily in stocks the risks are large. The Mutual Funds are basically finance companies who have experts who will collect funds from large number of small investors and will invest your funds in diversified stocks. Thus you are in a way getting your investment spread over a diversified portfolio.
    The mutual funds are traded like shares in BSE / NSE based on the valuations of their stocks in BSE / NSE.
    Mutual Funds have a very significant role to play in stock market. The mutual funds operators have a huge amount of funds to leverage with and thus they can drive the market significantly upward/downward. They can at times stabilise the markets. If at any given moment of time all the mutual funds manager decide to pump in money and start purchasing stocks the market can suddenly become a bull market and vice versa.

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