A Mutual Fund is an investment vehicle made up of a pool of moneys collected from
many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and other assets. These funds are managed by professional fund manager, who put on one side the fund's investments and attempt to produce Capital gains and/or income for the fund's investors. A mutual fund's portfolio is well managed structure and maintained to match the investment goals that was stated in its catalogue.
In other manner we can say that "A mutual fund is a collection of money from investors and which can be invested by fund manager as a investment on their (investors) behalf. It charges a small fee ( Called Brokerage Charges ) for managing the investors money. Mutual funds are an excellent investment for those investors who do not know how to invest their money in the market. Investors can choose a mutual fund scheme based on their financial objectives and start investing to achieve the objectives ( Financial Goals).
"Mutual Funds are an excellent way to diversify your investment portfolio with the help of our Professional team. Welcome to Basan Equity Broking Limited, a place where you can meet all your mutual fund investment needs."
A Systematic Investment Plan (SIP) is when you decide to invest a limited amount of money every month or every quarter on a regular basis, which is called mutual fund. Most mutual fund applications have a box that you can select under the heading "Systemic Investment Plan (SIP)" and then you are able to determine what your automatic recurring investment will be.
They are two totally different things. A SIP is nothing more than a way or strategy of essentially rupees cost averaging into some type of investment. A Mutual fund is an investment product that consists of a portfolio of stocks, bonds, etc. So in essence, one is a strategy to invest and the other is a product to invest in.
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