Mutual Funds

What If You Could Invest Your Money And Have Someone Else Professionally Manage It For You? Services Like These Do Exist, But They Come With A Requirement Of High Amounts Of Capital Or Money To Be Invested. What If You Could Avail Such A Service, Even With A Small Investment And Get The Advantage Of Professional Money Management? Well, This Is Possible By Investing In Mutual Funds.

A Mutual Fund Is Essentially A Common Pool Of Money In Which Investors Put In Their Contribution. This Collective Amount Is Then Invested According To The Investment Objective Of The Fund.

What Are Mutual Funds?

A Mutual Fund Is Smart Investment Tool That Helps To Grow Your Wealth. It Is Smart Way To Make Money Work Harder, Without You Working For It.

In A Simplified Manner A Mutual Fund Is A Collective Investment Vehicle That Collects &Amp; Pools Money From A Number Of Investors And Invests The Same In Equities, Bonds, Government Securities, Money Market Instruments.

The Money Collected In Mutual Fund Scheme Is Invested By Professional Fund Managers In Stocks, Bonds, Money Market Instruments, Gold And Other Similar Assets Etc. In Line With A Scheme’s Investment Objective. The Income / Gains Generated From This Collective Investment Scheme Are Distributed Proportionately Amongst The Investors, After Deducting Applicable Expenses And Levies, By Calculating A Scheme’s “Net Asset Value” Or NAV. In Return, Mutual Fund Charges A Small Fee.

In Short, Mutual Fund Is A Collective Pool Of Money Contributed By Several Investors And Managed By A Professional Fund Manager.

Mutual Funds In India Are Established In The Form Of A Trust Under Indian Trust Act, 1882, In Accordance With SEBI (Mutual Funds) Regulations, 1996. The Fees And Expenses Charged By The Mutual Funds To Manage A Scheme Are Regulated And Are Subject To The Limits Specified By SEBI.

Mutual Fund Investment Strategy

Open ended Funds

An open-end fund is a diversified portfolio of pooled investor money that can issue an unlimited number of shares. The fund sponsor sells shares directly to investors and redeems them as well.

Close Ended Funds

A Closed-End Fund (CEF) Or Closed-Ended Fund Is A Collective Investment Model Based On Issuing A Fixed Number Of Shares Which Are Not Redeemable From The Fund.

Equity Funds

An Equity Fund Is A Mutual Fund That Invests Principally In Stocks. It Can Be Actively Or Passively (Index Fund) Managed. Equity Funds Are Also Known As Stock Funds.

Debt Funds

A Bond Fund Or Debt Fund Is A Fund That Invests In Bonds, Or Other Debt Securities. Bond Funds Can Be Contrasted With Stock Funds And Money Funds.

Hybrid Funds

Hybrid Funds Are Mutual Funds Or Exchange-Traded Funds (Etfs) That Invest In More Than One Type Of Investment Security, Such As Stocks And Bonds.

Income Funds

Income Funds Are Mutual Funds Or Etfs That Prioritize Current Income, Often In The Form Of Interest Or Dividend Paying Investments.

Real Asset Funds

Real Assets Are Physical Assets That Have An Intrinsic Worth Due To Their Substance And Properties. Real Assets Include Precious Metals, Commodities, Real Estate, Land, Equipment, And Natural Resources.

Sector Funds

A Sector Fund Is A Fund That Invests Solely In Businesses That Operate In A Particular Industry Or Sector Of The Economy. Sector Funds Are Commonly Structured As Mutual Funds Or Exchange-Traded Funds