New Delhi, April 16 -- A popular investment option for individuals looking to achieve financial goals and grow their wealth, a mutual fund is formed when an asset management company (AMC) pools money to purchase securities.

A fund manager is appointed to manage the investment, and participants are given units corresponding to their investment sum. Purchase and sale of units is at latest net asset value (NAV).

You can begin investing in mutual funds with small sums via systematic investment plan (SIP) or lumpsum, in line with your financial goals. Notably, since MFs are a market linked instrument there are varying levels of risks attached based on the type of scheme. It is advisable to read terms carefully before investing.

An SIP allow...