Basics of the Mutual fund industry!

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Basics of the Mutual fund industry!
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Overview

• If you have been working for a while, chances are
  high that you have heard about investing and
  mutual funds and the benefits that come with it.
  Of course, it does take a fair bit of planning
  and research before you can go and make an
  investment, but it is extremely important to know
  the mutual funds basics and what key factors
  decide if the fund grows well.

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Key Points You Have To Look At

• Net Asset Value Probably the most important
  number that exists in the mutual fund industry is
  the net asset value. How much does one unit of
  the mutual fund value at today and how much would
  it cost you? This determines the growth of the
  mutual fund and you can track this on a daily
  basis too.
• How does a mutual fund work? It is a basically a
  collection of funds that are put together for by
  a specific trader or company. It would be across
  a range of different companies in the stock
  market and hence is a reduced risk as compared to
  investing individually in the stock market. You
  do not have to keep a very watchful eye on the
  fluctuating share prices nor do you have to worry
  about huge drops in the stock market.

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Cont

• Its a long term strategy The thing with mutual
  funds is that you are not investing for the short
  term. The fluctuation in the stock market
  actually works in your advantage here as over a
  period of time, you would have an average unit
  value that is lesser than the current rate.
• Brand and investor One of the important mutual
  fund basics is to note the company that has
  created the mutual fund plan as well as the
  person who is controlling the investment. It is
  quite a strong factor in the growth of the fund.
• Fund size Lastly, look at the fund size or the
  total investment value of the funds. The larger
  the fund size, the better.

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Conclusions

• Planning for the future is extremely important
  and investing in mutual funds is the best way to
  ensure a strong and financially sound future. It
  is not easy to track movements in the stock
  market on a daily basis and an investment in
  mutual funds is the perfect solution for any of
  us. Choosing an investment like this is ideal
  today looking at the future growth in India.

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Thank You