What are funds and why should you invest in them? Know in this article
Funds
Today I will tell you about funds, what are funds. We all need money sometime or the other in the future and the amount collected to solve this problem or the amount collected for a specific purpose is called a fund.
Funds have many advantages and disadvantages, today we will discuss them only.
Type of Funds
1.Tax Saving Fund
2.Equity Fund
3.Liquidity Fund
4.Money Market Fund
Important points
• Many people invest their money in funds
• The amount invested in funds is safe
• Funds are different from banks because money grows in them and there is no growth in banks
Why should we invest in funds?
Everyone should invest in funds because we can increase our money. Once the money is invested in a fund, it keeps on increasing which reduces the burden of earning money on us and we can face our financial problems and solve the problems that may arise in the future.
I advise you to invest only after getting the correct information about the fund. Some funds are given here like Mutual Fund, Index Fund, Large Cap, Small Cap etc.
Benefits of Funds
Funds have many benefits and many funds have been created, different types of funds have been created for different people, some of the benefits are as follows, tax benefits, minimum investment, liquid investment, money growth etc.
Disadvantages of Funds
Funds have some advantages and some disadvantages. Funds are subject to market risk and the ups and downs in the market affect the fund. Sometimes the government tax on the profit generated in the fund is high and the institutions that run the fund have high fees. Different funds have been created according to the needs of the people.
Fund Calculator
In the fund calculator, you can find out how much investment will give you the growth in principal in how many years and how much money you will get at what expected rate of return
Why do we need funds?
Everyone faces financial problems in life and we need funds to solve them
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