Many professionals work on the collection of money from investors. So many people together invest here and then the shareholders pool the money and then it is invested. There are various types of funds available these days; one such fund is equity fund. In equity funds, the investment is mainly done in stocks, sometimes they are referred to as stock funds as well.
Mandatory documents before investing in mutual funds:
- Application form: Two forms are to be filled, one related to SIP and second about opening an account
- KYC form
- To invest from the minor category, a third – party declaration is filled
Some essential features of mutual funds are:
- More productivity on fewer expenses is one of the best benefits of mutual funds.
- A good number of assets.
- Good performance is a constant feature here.
- No changes in the strategy every time is possible at all.
- Reputation is good.
Some mutual fund schemes are Large-cap equity funds, Multi-cap equity fund, ELSS fund, Dynamic bond Fund, Small-term debt fund, Gilt Fund, Equity oriented balanced fund, Liquid Debt fund, Credit Opportunities debt fund, mid-cap equity fund etc.
To find more information about mutual fund kindly refer to Investopedia.