What is mutual fund?
A mutual fund is a professionally managed investment pool. You buy units of the fund, and the fund manager invests that money according to the fund objective.
What does NAV mean?
NAV (Net Asset Value) is the per-unit value of a mutual fund. It changes daily based on the market value of assets held by the scheme.
Types of mutual funds
Equity funds focus on stocks and are generally used for long-term growth. Debt funds invest in bonds and fixed-income instruments, usually with lower volatility. Hybrid funds combine equity and debt to balance growth and stability.
How beginners can start
If you are just starting, SIP is a practical route because you invest monthly and avoid timing the market with one large amount.