I want to know about investing money to mutual fund.how it works.?

I am a working girl,,so i want to invest my money to mutual fund..what is it? how it works? i want full detail information regarding it...tell me some name's of leading companies also.
thank you.

hi
I have no idea about your knowledge on mutual fund. so it is difficult to me to understand from where I start and where to end.
So I just describe the basic things of mutual funds. Actually mutual fund are share trading companies.
Think you have invested in five different share of the capital of 10 lakh but you are not related to this field, then it is difficult for you to make decisions when to sell or buy share.
In that case the solution is mutual funds, most of mutual fund are created by big financial company or banks. you invest in mutual fund and mutual fund invest in share. so indirectly you investing in shares with the help of professional persons.So mutual fund is more secure than investing in equity share.and secondly mutual fund work under observation of Security Exchange Board of India.

but risk also exist with mutual fund too because indirectly your money is investing on market.

mutual fund can be classified such as
Equity diversified
hybrid equity oriented
hybrid Debt oriented
gilt etc.

for more details or specific details you can mail me .

http://www.investopedia.com/articles/mut...

hi soni i am not from finance background but i have answer to what u asked.
what mutual funds do is they collect money from general public and invest that money in reputed companies .the fund managers will identify the companies where to invest money based on the earnings and their future plans.
check out www.easymf.com to find a right mutual fund to invest ur money.
while looking at advertisements of mutual funds u will find these words
"Mutual Fund investments are subjected to market risks please read the offer document before investing" this is bcos they are not sure of performance of companies where they invest money but many MF are correct.

Detail information will be according to where you live when it come's to leading companie's.Mutual fund companies you have to look for them in your area and the best advice from me to you is that when it is your money which you want to invest also comes with reponsible act.Go visit them they wont bite,mutual funds helps you explore the equity market(stock exchange) as well as help you in different investemnt plan with your budget but you really do need to search for the companies plus start giving them calls and visiting them.Mail me if you want details,will help you identify which companies you should be looking for but have no idea which location you located at!

hi there,

well it's a good thought that ur trying to invest in mf

there are different tyupes of mf available in market
and ELSS is one which also gives u tax benifit under section 80 ... i don't remember exact
u need to see wxact proportion of it's incestments in debts, equity

and u'll get more info on mutualfundindia.com

i hope this would b useful to u :)

I could give you the information you require, but it will be a long and involved answer. You can get many of your questions answered with this book: "Mutual funds for dummies"

I will give you a very brief run down. There are 3 types of mutual funds. 1. closed end funds, traded like stocks 2. open ended funds, which are purchased directly from the mutual fund company. These are of two types. Front end loaded, they have a sales charge and 3. no load, no sales charge.

Generally, the front end load funds have a lower investment minimum, about $500. The no load a higher minimum bout $2,000. The no load funds also have a higher expense ratio, about 1.5% annually. The front end loaded funds about half that amount. The front end loaded funds also come in varieties that have a back end load for people who do not like paying a sales charge up front. The sales charge varies but is about 5.75%.

American Funds is a fund family with a front end load. They do have many excellent funds however.

Fidelity, Vanguard, T Rowe Price, Royce Funds are examples with no loads. They all have some excellent funds.

GAM, IIF, TDF are examples of closed end funds that you buy like stocks. Some of these have the big advantage that they sell at less than asset value, so it is like buying stocks on sale. GAM currently sells at about 8-10% below asset value.

There are also funds called index funds. They are a special class of closed end funds that have a very low expense ratio. They are unmanaged funds that track a particular stock index such as the S&P 500. They are very popular at the moment.

For a working girl with not a lot of money to begin investing with, I would suggest investigating American funds. Low initial investment that you can then add $50.00 to when you feel like it. Dividends can be reinvested without the sale charge also.

One thing to be aware of is that diversification is a big help to reducing risk and improving long term gains. That applies to investing in mutual funds as well. Do not place all of your money into just one mutual fund. Pick several with slightly different investment philosophies. Of course when you are just beginning, one is all you can perhaps afford. But as time goes on you can begin investing in other types. Examples of the different types are small cap funds that invest in small companies. Royce funds is one of those. Large cap value funds, Large cap growth funds. Foreign stock funds. And so on.

When you are choosing a fund, look for funds that have a long term growth record of at least 10% annually

Once you're well informed on mutual funds you might want to rethink it as an investment option. Mutual funds are today in what the pros call a waterfall pattern that is going to last anywhere from 10 to 20 years. Meaning, it's not going to make significant gains for you to profit from. The many people who took up this investment option hoping they could one day buy a house at their favorite destination will get a cold shower....i'm sorry to say but it's not going to happen...