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One can start investing in mutual funds at any age whether he or she is a child or an adult. Mutual Funds are good for long term or short term? There are funds which are for short term in which you can invest if your purpose of the investment is short or medium. On another hand, if you want to invest for a longer duration than you can definitely opt for long term funds. Can I exit from the investment done after some time Solomon Thomas Authentic Jersey , if once invested? Yes, an investor can stop investing further but it also depends upon the scheme in which you have invested as there are open-ended and closed-ended funds. Open-ended funds let you redeem the amount and thus exit from the fund anytime. Close-ended is the ones in which your fund is locked for a specific period and thus you can redeem and exit from the fund after period gets terminated. With how much amount can the investment be done? Investment can be started with a minimum amount of Rs 500 and later on as per the requirement one can add the amount in the same fund or even start with the new fund. Is it safe to invest in mutual funds? We always face some kind of risk while doing investment and same is the case with mutual funds. However, one can invest in various funds to diversify the risk and thus overcome it. How is it possible to make money from mutual funds? You get capital gains in mutual funds which are distributed annually. Also Dante Pettis Authentic Jersey , there is an option of dividend schemes wherein fund generates interest which is distributed among investors on monthly or quarterly and even yearly basis. Lastly, NAV called as Net Asset Value which is the price of the share when increases automatically the value of fund also gets a hike. This results in growth in your investment and thus you are able to make money Do mutual funds give a fixed amount of return? A lot of factors affect the returns in mutual funds such as market scenario, time period and management of the fund. Hence Mike McGlinchey Authentic Jersey , returns are not fixed due to the uncertainty in these factors. Hence, with a definite purpose, one can invest in mutual funds and can use the money well which is staying idle.
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