A mutual fund is part of finance but here investor indirectly buys a share of company and investor is the indirect owner of that share. In Mutual fund, a bluechip fund is a means a 5-star fund means experts prefer this type of fund for investment. Fund managers collect funds from investors and invest in securities, stocks, bonds, money market instruments, and other assets. In mutual fund there three capitals in which investors are investing their money.
❶ Large Cap: Large Cap is those companies in which their market capitalization is more than $10 billion is known as large-capitalization companies. Large-cap is also known as the big cap companies.
❷ Mid Cap:
Mid Cap is those companies in which their market capitalization is between $2 and $10 billion is known as the mid-cap companies.
❸ Small Cap: Small-Cap is those companies in which their market capitalization is between $300 million and $2 billion. ❹ Hybrid Fund: A hybrid fund is a type of Mutual Fund. A hybrid fund is also known as the Balance fund. Hybrid funds are a combination of different investment asset classes such as stocks, bonds, cash e.t.c.
What is meant by NFO?
In Mutual Fund investment companies declare an NFO i.e New fund offer. A new fund offering is a part of a mutual fund. NFO i.e New fund offer is similar to the IPO i.e initial public offering.
What is the point of view of investors to NFO?
Each investor cant has enough time to study on company analysis or selection of funds where the experts exist an NFO and where investors just give their money to fund managers.
A fund manager manages their money with respect to their value of money means fund manager invests their money in different capitalization as their value of fund of investors.