Consider a mutual fund as money pooled by many people. The mutual fund is tightly regulated and monitored by the government (SEBI), so it is safe.<\/p>\n\n\n\n
A professional manager manages the pool by buying shares in good performing companies (equity), or lends it to such companies (debt). The profit made by the mutual fund is returned back to the people contributing to the pool, as dividend or an increase in value.<\/p>\n\n\n\n
Tip: Keep brokers out when buying a mutual fund; they sell \u2018regular plans\u2019. Commissions erode upto 40% of your money over time (though they may appear small at 1% to 1.5% per year). Instead go for commission free \u2018direct plans\u2019 from a direct mutual fund platform such as\u00a0jamawealth.com<\/a><\/p>\n\n\n\n\n Maxiom Wealth \u2014 Free Tool<\/p>\n Two funds with similar star ratings can deliver very different outcomes. Use our fund comparison tool to check if you’re in the right scheme for your risk profile and investment horizon.<\/p>\n Compare Funds \u2192<\/a>\n Talk to a Financial Advisor<\/a>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":" Consider a mutual fund as money pooled by many people. The mutual fund is tightly regulated and monitored by the government (SEBI), so it is safe. A professional manager manages the pool by buying shares in good performing companies (equity), or lends it to such companies (debt). The profit made by the mutual fund is… Read More »How can you describe\/explain mutual funds in the simplest way to a person who doesn\u2019t know a thing about investing, etc.?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[139,38],"tags":[],"class_list":["post-1412","post","type-post","status-publish","format-standard","hentry","category-benefits-of-mf","category-mutual-funds"],"_links":{"self":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/1412","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/comments?post=1412"}],"version-history":[{"count":1,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/1412\/revisions"}],"predecessor-version":[{"id":3520,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/1412\/revisions\/3520"}],"wp:attachment":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/media?parent=1412"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/categories?post=1412"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/tags?post=1412"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Is Your Mutual Fund Working Hard Enough?<\/h3>\n