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what is Bond or Debentures and mutual Fund

Most of people are only now that in share market we can only purchase share and sell . but less people know that we can also purchase other thing just like debenture and mutual fund  and SIP now we will discuss about this.

BOND / DEBENTURES : 

Bond / Debenture is like a loan. When a company requires money for a project or they can take a loan from the bank or they take loans from the public / investors and issue the Bonds / Debentures to the public, whose repayment they have to do in the due time. Companies pay interest from the fixed rate on Bonds / Debentures and repayment instead of bonds upon completion of the term of the bond.

Bonds / Debenture For any investor, there is a Secure Investment Option as compared to Shares because it is given from time to time at the rate fixed by the company and repayment is done on Maturity (the term of the bond).


what is mutual funds ? 
Mutual funds are indirect investments in one kind of shares and bonds. A mutual fund is a type of institution or trust that releases its units (like Shares) which people invest in mutual funds. The Mutual Manager of Mutual Funds invested in the Mutual Fund invested in various types of Shares and other securities based on their knowledge, experience, understanding and analysis.

This benefit of investment in mutual funds would be that the Professional Fund Manager of Mutual Fund tries to invest the best of all the collected money on the basis of their knowledge, in return for which they charge some fees.


Investments in the Mutual Fund are beneficial for those who do not have much knowledge about the stock market or they do not have enough time to see the full information before investing in the stock, so they invest in mutual funds and the mutual fund will make them According to efficiency, further invest in the stock market and other securities. Any dividend received by the Mutual Fund is distributed to the investors based on the units bought on them.

we will discuss it in detail later .

what is SIP ?

SIP means - Systematic Investment Plan | SIP is a way to invest in mutual funds. Instead of investing a lump sum, every month a fixed amount is invested in the Mutual Fund. The investor's bank account is linked to the SIP Scheme, which transfers a fixed amount from the bank account to the mutual fund every month and equal amount of mutual fund units come to the investor's account. Due to being simple and automatic, SIPs are very popular nowadays.


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