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The CII or the Cost Inflation Indexation is a way to measure the inflation and it is further used for computing long-term capital gains earned by selling the assets. The CII also takes the CPI or the Consumer Price Index into consideration for a specific financial year for the urban employees.
Hence, indexing helps in reflecting the asset’s real value in accordance with the existing market prices.
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A mutual fund allows investors to pool money with a common investment objective. It then invests the money in various asset classes based on the scheme’s objectives.
As an investor, you put your money in financial assets like stocks, bonds, and other securities. You can either buy them directly or use investment instruments like mutual funds.
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