Gulaq

Can You Own Half a Share?

When you invest in a mutual fund, it is different in many ways. And in one way it is different from stock holding is that you can hold a fractional unit of a mutual fund, but you can't hold a fractional unit of a stock.

As a result, when you invest any amount in a mutual fund, the mutual fund can issue you exactly the fractions which will represent that amount of money that you have invested.

So you could end up with 100.35 units of a mutual fund. But you cannot end up with 100.35 shares of Reliance. So this is the difference of fractional ownership in mutual funds versus stocks.

This can help you better understand and create a balanced portfolio even with a lesser amount of money.

Anyway, mutual funds are diversified portfolios, and within that, you can distribute your money across various mutual funds even through small SIP amounts.

Use this information to build a disciplined portfolio and follow us for more. Good luck!