Mutual funds are right but brother which mutual fund is right do you know how many mutual funds are there I ask Vibhu you must have heard about it and seen D which mutual fund is right
B which mutual fund is right I don’t know I don’t know how many mutual funds are there in the market I also don’t know I don’t know
So there will be 10-20 maybe there can be more there can be 100 I don’t know maybe 500 funds these
I don’t know if there are 1000 funds then how will we know which one is right
A I don’t know I don’t know so approximately if you go to any screener then you will see more than 1400 mutual funds by the way you will see more than 1400 mutual funds now first of all let’s understand why mutual funds have come so people say that brother if I invest in one stock or two stocks then I don’t know whether I am making the right investment or not I am making the wrong investment there may be profit there may be loss but if I invest in a basket of stocks, what will happen is that my investment It will be diversified, which can benefit me, absolutely, now if we see, there are more than 5000 stocks listed in the stock market, I don’t want to invest in those 5000 stocks, I am saying that I will hold a mutual fund which will invest in the best stocks, but now my confusion has increased, here there are more than 1400, mutual funds are coming to me and when I talked about the stock market, it is important to understand that they are equity mutual funds, so there are many types of mutual funds, today we will understand mutual funds in detail, so like I clicked on equity mutual funds, then your problem is not over yet, you still have 613 options, now out of these 613 which mutual fund should I choose, which one is right, no one has told us this, no one is telling this, so it is very important to understand this, suppose you say I will choose Kotak Flexi Fund, for example, and I put Rs 10 lakh in it at once. So I put and I forgot. So if the stocks in it will increase in the future, then my money will increase at once. So this is called lump sum investment. Okay. One-time investment is called lump sum. Okay. And what can you do in this way? If you want, you can do SIP in it every month. Brother, I earn Rs 1000 per month. I can add Rs 1000. So I am investing Rs 1000 every month in mutual funds. So you are investing a very big earning of your life in a fund. What should we look at while investing? This is very important. So what should we look at? Let’s understand this. First of all, let’s understand what are the types of mutual funds and in which we should invest Yes, in that way investment is being made in commodities. So let’s talk about equity now. Equity means investment in the stock market. So what happens here is that it becomes high risk. If we look at their risk, then they come in the high risk category because there can be volatility in the stock market. The market can go up and then come down. It can go up again from the bottom. So we call this volatility. Then there are debt mutual funds. Debt means in a way that you have given money on loan. So you get a fixed return which is safe. It is safer than equity. This does not happen at all because what happens in equity is that there are chances of loss. That brother there can be a loss of 10, 20, 30%. This does not happen in debt but if you do not check your risk profile even a little bit then the whole money is lost. When it sinks, okay, yes, I mean if you have invested 1 crore then it will sink, then only 1 crore is lost. This is absolutely right. If you invest money in debt and you invest it in the wrong place then it is important to understand that debt is not 100% safe. I mean if we have kept money in the bank then we think it is safe but if the bank closes then everything is over. We do not invest money in the bank. There are many types of debt funds, there are liquid funds, there are many types of funds so they have risk profiling, we analyze in different ways so there are gilt funds, there are short term funds, there are long term funds so there are many things, okay so now we understand that equity mutual fund means investing money in the stock market, okay debt means one way. We will get fixed interest on the loan. Now like I click on debt mutual fund then I see their return. The maximum is 40 but otherwise you will get 13, 12, 11, 10 or less than 10. Okay generally what are your debt funds? But when I go to equity, here you can see the return is coming even at 40 and if you see the average return, your return will be 15 to 20 because the market is rising.