Mutual Funds can invest in the stock market, govt bonds or tax bonds or anywhere else. So do we, the investors, have any control over it?
Mutual Funds have an objective. For instance the “Sundaram Select Midcap” will only invest in Midcap funds (with some market cap limits). Franklin India Bluechip Fund only invests in “blue chip companies” which has a certain definition. And then there are debt funds, fixed income funds and so on which specify exactly where they will invest and in what ratio. Balanced funds may choose to invest upto 60% in equity and 40% in debt.
Related Questions
- Mutual Funds can invest in the stock market, govt bonds or tax bonds or anywhere else. So do we, the investors, have any control over it?
- What are the primary tax implications of owning mutual funds that invest in foreign securities?
- Is it a good idea to invest in mutual funds, specifically total stock market index funds?
