Understanding Mutual Funds: A Beginner’s Guide

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Mutual funds are a simple way to invest in the stock market without deep knowledge.

What is a Mutual Fund?

A mutual fund is an investment that pools money from many investors to purchase a diversified portfolio of securities like stocks, bonds, or other assets. Investors buy shares of the fund, gaining partial ownership of the portfolio and participating in its gains or losses. 

A professional fund manager manages the portfolio, making investment decisions based on the fund’s objective. 

Types

Equity: Invest in shares (high return, high risk)

Debt: Invest in bonds (safe, low return)

Hybrid: Mix of both

Why Choose SIPs?

Start with ₹500

Regular investment builds wealth

No need to time the market

Best Mutual Funds in 2025

Axis Bluechip Fund

SBI Small Cap Fund

ICICI Prudential Balanced Fund

How to Invest?

Use apps like Groww, Zerodha, Paytm Money.

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