Mutual funds related FAQs

What is the process to invest in mutual funds scheme ?

Mutual funds usually have an advertisement in the local newspapers announcing the launch date. For information and forms, investors can contact distributors and agents of mutual funds located all across the country. Agents and distributors that offer such services can deposit forms with mutual funds. Today, mutual fund units can be distributed by banks and post offices. Investors should note that mutual fund schemes being promoted by banks and post offices are not to be considered their own and they cannot guarantee returns. Banks and post offices have no role other than to distribute mutual fund schemes to investors.

Agents/distributors should not take investors for commissions/gifts in order to invest in a scheme. They should, however, consider the track record and make objective decisions.

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 ?

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

In what form mutual fund is set up?

What does sector specific funds work ?