Mutual funds related FAQs

What is the history of indian mutual funds and role of SEBI in mutual funds in India ?

Unit Trust of India was India's first mutual funds established in 1963. In the early 1990s, government allowed public sector banks and institutions the establishment of mutual funds. In 1992, Securities and Exchange Board of India was established.  There are two motive of SEBI  : to protect the interests of investors in securities, and to promote and regulate the securities markets.
SEBI is responsible for regulating mutual funds. SEBI published regulations concerning mutual funds in 1993. In 1993, SEBI issued regulations for mutual funds. After that, private sector organizations were allowed to sponsor mutual funds and allow them to access the capital market. In 1996, the regulations were revised completely and amended from time-to-time. SEBI issues guidelines from time to time for mutual funds to protect investors' rights.
All mutual funds promoted by public and private entities, as well as those promoted abroad, are subject to the same set Regulations. All mutual funds are subject to SEBI inspections and monitoring. No difference in the regulatory requirements. The mutual funds sponsoring the schemes are subject to the risks

Who can be eligible for investment in mutual funds ?

What does Net Asset Value (NAV ) refers to ?

What does Purchase Price means ?

What does Redemption Price means ?

What does Exit Load means ?

What does the Scheme Information Document and the Statement of Additional Information means ?

What is the importance of the Scheme information Document and Statement of Additional Information to investors ?

What does cut - off timing means ?

What does Current Value of investment means ?

When Net Asset Value is announced ?

After making investment ,how i will receive my account statement ?

What can a person do if he does not receive account statement ?

What are the steps for Redemption ?

What Systematic Investment Plan (SIP ) does works?

What Rupee Cost Averaging does works ?

Can an investor have directly redemption proceeds to his bank account ?

What documents need to be submitted with a purchase application ?

In what form mutual fund is set up?

What does sector specific funds work ?

What does tax saving scheme works ?