@
sinnersaint @
moizadil
There is no better forum than PG for everything dear
Umm, this topic is quite huge. i am only providing minor details. rest you keep on posting queries and ill try to answer them. (I am an active investor in mutual funds)
Mutual funds are basically simple funds. you invest your money in funds and the fund manager invests that money.
Now the question in what fund they invest ? depends upon the fund you select. for example. Meezan have several funds. One of them is stock fund (In this fund they will invest 100% of the amount in stock market) this has high returns, but ultimately high risk as well.
They have also sovereign fund (it gives a stable 8-10% per year). Very low returns but the risk is low as well.
Similarly, there are gold funds (where they invest in gold only and your investment goes up and down with the gold prices in the market)
Now considering what are the advantages of investment in funds
1. You get return on your investment (based on which fund you have invested in )
2. If you are salaried employee (you can get a tax rebate of certain % on certain amount you invest)
This is just a summary. For queries. keep posting here and ill provide the details