Whenever we think about investment, the first thought that comes to our mind is gold or bank FD. These are considered traditional and safe means of investment. There is less risk of sinking money in it, although the return on it is also very limited. Apart from this, there are many investment options where one can get good returns in a short time, such as investing in the stock market, bonds, or debt.

These are risky investments and due to lack of correct information, investors often have to suffer heavy losses in them. In such a situation, if you also want to invest in new options like the stock market etc. instead of traditional investment options like gold, real estate, or bank FD and you do not have the right information about it, then a Mutual Fund can be the best investment option for you.

Mutual Fund is such a means of investment where your investment is managed by an experienced expert. It is a type of collective investment instrument where many investors together invest money for a goal and this investment is managed by the expert fund manager. Due to this, your investment becomes less risky.

What are Mutual Funds, how do they work, what types of Mutual Funds are available in the market, how to start investing in them, and how much risk is there in them, to explain all these things, a new video series “Finance Ke Funde” has been started by Jagran Business, in which expert mutual fund distributors will talk to us on all the important issues related to it. In the first episode of this series, we talked to mutual fund distributor Abhinesh Kumar Founder & Mentor, of Infinity Finserv. You can also watch this video in full here-

How do Mutual Funds work-
Mutual funds are a kind of pooled investment. Understand it like this many people invest their money by combining it into different types of assets. The returns received from these investments are distributed among the investors in proportion to their investment amount. Comparing mutual funds to a bus journey, Kumar said, "You can get on or off at any stop, but you have to pay the fare for the distance you have traveled."

The fund manager takes care of your investment.

Your investment in a mutual fund is monitored by a fund manager. Kumar says, "The fund manager is like the captain of a ship. They guide the investment based on the market situation and the objectives of the fund."

How much risk is there in Mutual Fund

Through Mutual Funds, your money is invested in many places like the stock market, debt, bonds, etc. The risk is also different in every investment option. Kumar says "The risk you take in a mutual fund is directly linked to the potential return. It is like choosing a bike and a sports car. Bikes are safe but slow, while sports cars offer more speed but come with higher risk. Similarly, in mutual funds, equity-based funds offer higher potential returns but also carry more risk than debt funds."