I am totally a newcomer & therefore asking you, are mutual funds also of different kinds?

Does differentiation and various types exists in mutual funds also? then please tell what are different types of mutual funds?
1. Open ended fresh Mutual funds
2. equity fund

2 Replies to “I am totally a newcomer & therefore asking you, are mutual funds also of different kinds?”

  1. there are different types of mutual funds offered by various asset management companies such as s.bi. reliance.fidelity aig. birlas sahara, sundarm paribus, franklin templeton,canara bank, pnb tata, uti etc.all these amc are bring ing different types of schemes to cater to the needs of public or small investors.equity, debt, diversified pportfolio, area specific such as taa services has introduced service sector m.f. sbi recently introduced infrastructure series-i uti is presently offering lifestyle fund. sundaram paribus has introduced global advantage fund.some are close ended and some are open ended. some are dividend, growth and reinvestment.all are offering sip which means systematic investment plan. u can invest minimum 500/- per month in any scheme. contact ur nearest finance broker.all most all the amc are investing part in equities and part in long term/short term and following different strategies to give better return to investors.

  2. There are literally thousands of different mutual funds. Some cost you money to buy, usually through a broker (called “Load” funds), while some are “free” to buy directly (no-load funds). Each fund simply is a pile of varying things, be they stocks, bonds, and even cash/treasury bonds. The funds each have management that buys and sells to try to have the fund make money. Their is a mainenance fee for that service, usually less than 2% for good ones.

    You should get what is called a Prospectus to see what a particular fund does. Each mutual fund is guided by the manager and the prospectus will tell you what kinds of things it will be dealing in. For example, a fund may own only bonds from Asian countries…. Or only Stocks from companies that are valued over a certain level (called Large Cap funds…meaning the companies have a large capitalization…are worth a lot)…or stocks from companies that are worth less than a certain amount (called Small Cap funds)…or only technology stocks….

    Check out http://www.troweprice.com as they are no-load and they have something like 40 different funds. Altho a lot of them require $ 1000 or more to open, you can also open them with an “asset builder” account that automatically buys shares monthly. You can set that up with $ 0 to start, then a minimum of $ 50 a month for each fund you choose.

    Have fun and good luck!

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