Muual Fund
 
What is Mutual Funds?
A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is invested by the fund manager in different types of securities depending upon the objective of the scheme. These could range from shares to debentures to money market instruments. The income earned through these investments and the capital appreciation realized by the scheme are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed portfolio at a relatively low cost. The small savings of all the investors are put together to increase the buying power and hire a professional manager to invest and monitor the money. Anybody with an investible surplus of as little as a few thousand rupees can invest in Mutual Funds. Each Mutual Fund scheme has a defined investment objective and strategy.
 
 
Types of Mutual Fund Scheme
 
Mutual fund schemes may be classified on the basis of its structure and its investment objective
  • By Structure
  • By Investment Objective
 
Other Schemes
 
  • Tax Saving Schemes
  • Special Schemes
 
Benefits of Investing in Mutual Funds
 
Benefits of mutual fund investing are liquidity, affordability, diversification, convenience and professional management. Mutual fund investment provides liquidity. Investors can sell their mutual fund units on any business day and receive current market value on their investments.
 
How to invest in Mutual Fund
 
Investment done in mutual fund is known as mutual fund investing. Mutual funds investing require a vision for the market that encompasses many contingency plans.
There are generally four types of mutual fund investing:
Step One - Identify your Investment needs
Step Two - Choose the right Mutual Fund
Step Three - Select the ideal mix of Schemes
Step Four - Invest regularly
Step Five- Start early
Step Six - The final step
 
Rights of a Mutual Fund Unitholder
 
A unit holder in a Mutual Fund scheme governed by the SEBI (Mutual Funds) Regulations, is entitled to some rights.
 
Mutual Funds - A Globally Proven Investment
 
All investments whether in shares, debentures or deposits involve risk. Share value may go down depending upon the performance of the company, the industry, state of capital markets and the economy. Generally however, longer the term, lesser the risk. Companies may default in payment of interest and principal on their debentures/bonds/deposits. While risk cannot be eliminated, skillful management can minimize risk. Mutual Funds help to reduce risk through diversification and professional management. The experience and expertise of Mutual Fund managers in selecting fundamentally sound securities and timing their purchases and sales help them to build a diversified portfolio that minimizes risk and maximizes returns.
Worldwide, the Mutual Fund, or Unit Trust as it is called in some parts of the world, have almost overtaken bank deposits and total assets of insurance funds. As of date, in the US alone there are over 5,000 Mutual Funds with total assets of over US $ 3 trillion (Rs.l00 lakh crores). In India there are 38 Mutual Funds and over 300 schemes with total assets of approximately Rs. 100,000 crores. All mutual funds in India are regulated by the Securities and Exchange Board of India (SEBI)
 
Please contact us for more details. We will be happy to help you.