Things every new mutual fund investor needs to know before investing

For someone looking to start investing through mutual funds, making the right beginning goes a long way in putting the savings in good use.

As a new investor in mutual funds (MF), there are a few key things to have a grasp on, and over time the other nuances of the investments can be learned. Here, we present a mutual fund investment guide for beginners to help them make the right investing decisions. Your first brush with mutual funds should not leave you with a bad experience, hence, ensure you have the right head start.

Some of the things an investor needs to know before investing in mutual funds:

Mutual funds - How does it work

Different investors put money in a mutual fund scheme. The funds are then deployed or invested across securities such as equities, bonds, etc. Depending on market conditions, the value of such securities may rise or fall and at the end of the day, the fund house calculates and declares the value of each unit of MF known as NAV. Your gain or loss depends on the variation in NAV multiplied by the number of units you hold.