Hello friends, welcome to Metthu, so friends, today we will tell you that what you should take care of before investing in the mutual fund and on the basis of the same, we have brought this post, that is things to know before investing in Mutual Fund because there are many such things before investing in mutual fund. Which you have to clear and today we are going to tell you the same.
If you are unaware of Mutual Fund and Share Market then we have explained to you very well on this blog what it is and how can you invest in them and if you want to know about the benefits of mutual funds So we have written a post named benefits of mutual fund for you, in which you have been explained about its benefits in many ways.
Things to know before investing in Mutual Fund
It is very important to take care of some things before investing in a mutual fund, if you do not take care of all these things then you may have to take the risk.
On the basis of this, we have written this post in which we will be told you about things to know before investing in Mutual Fund. So let us know about things to know before investing in Mutual Fund without delay.
The determination of rating is at the base of many factors. In simple words, the rating is that When assessments are given the score given to the product after very careful evaluation The same is called rating. Before choosing any mutual fund plan, we look at its rating and this is our first step in the mutual fund.
#2. Net Asset Value (NAV)
With the help of NAV, you can find out the profit and loss of mutual fund, if it is defined in simple terms, then the net asset value of NAV means that the price at which you buy the unit is also from mutual fund scheme.
NAV in the mutual fund means profit and loss. Because whenever there is a profit in the fund, there is a change in the net asset unit, that is, the NAV increases and this shows whether there is a gain or loss in the investment.
#3. Expense Ratio
The expense ratio in mutual funds means that the expense ratio makes you aware of how much you are spending in managing your money if you are investing 10,000Rs. in any fund and Expense ratio is 1.5% Then it means that you will have to pay 150Rs to the management of the fund and this is what we call the Expense ratio in the mutual fund in the mutual fund.
#4. Entry Load
Whenever you invest in the mutual fund scheme or invest your money, during that time you have to pay some charge then you can invest your money, So this charge is what we call entry load in a mutual fund.
#5. Exit load
As we told you about the entry load, in the same way when any investor cash their investment or Whether he can cash anyway, So to cash, you have to pay some charge there and without giving a charge, you cannot cash your investment amount, then we call this charge exit load in mutual fund.
#6. Asset Management Company (AMC)
the Asset Management Company (AMC) which runs a company mutual fund and you can see many such companies in the market. Which runs mutual funds, such as HDFC mutual fund company, ICICI mutual fund company, etc.
#7. Assets Under Management (AUM)
AUM, whose full name is Assets Under Management, and whatever the total fund of the mutual fund is, it is for investment and not for any other work.
Whatever returns you make with the help of the benchmark, you can compare that return, the benchmarks are Sensex and Nifty, along with, The benchmark is independent.
#9. Fund manager
The mutual fund manager is the one who invests your investment because you only give your fund to the mutual fund manager to invest. But where to invest it and for how long to invest, the person who does all this work is called mutual fund manager or mutual fund experts and you can read the Mutual Fund post for more information, in which we have been explained about the mutual fund closely.
#10. Lock-in Period
Lock-in period is a time period in which investment is invested for any time period, and until that time period is completed, you cannot withdraw your invested amount before that time period. For your kind information, we tell you that there are three years period in the mutual fund of tax saving and this is what we call a lock-in period.
Whatever you have invested your money and after the time period, you get the return of investment, whether it is in profit or in loss, this is what we call to return and usually, we can check return only for one year, three years or even five years in the mutual fund.
Risk in a mutual fund, that is, you will gain or lose the amount you have invested. What is the risk while investing in mutual funds and how to reduce it, because, in the Share Market, you get more risk, but in a mutual fund, the risk is less. It is not that there is no risk in a mutual fund, there is risk inside it but there is less risk than share market.
#13. Systematic Investment Plan (SIP)
SIP in mutual fund means that there is a scheme in the mutual fund and through SIP you can invest your minimum amount and this amount is decided by AMC.
Thakur Ritik Suryavanshi is the author and founder of this blog, who has just passed his senior secondary class but at the same time he had a lot of interest in technology since childhood and along with that, he worked for almost four years in the field of technology, Has more than and they have a lot of experience in digital marketing. Thakur Ritik Suryavanshi belongs from Uttar Pradesh’s district Bulandshahr, and he started his internet journey from here.