Some of the Myths about Mutual Fund

Mutual Fund Myths There are few myths and misconceptions associated with investing in mutual fund schemes. Some of these notions have faded over time, as investor awareness has increased but some continue to hold strong. It is imperative to dispel …


Benefits of investing in Mutual Funds

There are two major reasons why most people around the globe are afraid to take investment decisions on their own. One of them is the lack of time to study the pros and cons of different investment opportunities and the …


Choices in number of investment options/plans to the Investors

Investment Plans/Options Available to Investors Investment Plans: Direct plan allows investors to invest directly with the fund house without any agent or distributor. This saves money and helps them cut down on expenses. Direct plans have a separate NAV. This …


Investment objectives and their classification

Mutual fund schemes can be classified according to their investment objectives. Equity Funds: Equity-oriented Schemes are those that invest primarily in equity and equity-related instruments. These schemes aim to increase capital over the long-term and medium-term. These schemes are best …


Different types of mutual fund schemes

Types of Mutual Fund Schemes Mutual Fund schemes can be classified into different categories and subcategories based on their investment objectives or their maturity periods. Mutual Fund schemes can be classified into three categories based on their maturity periods. Open-ended …


How do mutual funds work?

A trust is used to establish a mutual fund. It has Sponsor, Trustees (AMC), Asset Management Company (AMC), and Custodian. A sponsor (or more than one sponsor) establishes the trust. They are similar to promoters of companies and registered with …


Basics of Mutual Funds

A mutual fund is a trust that collects money from investors to achieve a common financial goal. The proceeds are then invested in different asset types according to the investment objective.. A mutual fund is simply a financial intermediary that …


What is the process of setting up a mutual fund?

A mutual fund is a trust that includes a sponsor, trustees, and an asset management firm (AMC). A sponsor is a person who promotes a company and establishes the trust. The mutual fund is managed by the AMC (an asset …


What are the advantages of investing in mutual funds

Mutual funds are a good investment choice for many reasons. Management professionals You may stop worrying about how and where to invest when you invest in mutual funds. Your fund managers will make a decision based on extensive market research, …


A brief on Mutual Funds

A Mutual Fund is savings altogether from many investors are collectively invested as one by professionally-managed trust.. The money can then be invested in stocks, bonds, short term money market instruments, and commodities like precious metals. Mutual fund investors share …


What are the potential risks of investing in mutual funds?

Mutual fund advertisements that end with "Mutual funds investments are subject to markets risks, please carefully read all scheme-related documents" are unlikely to have been missed. These are the risks mutual funds face: Interest rate risk Fixed income securities are …


A Short Brief on Net Asset Value

Net Asset Value (NAV), is the sum of the current value and total liabilities, divided by the number of outstanding units. An investor can track the performance of a fund's NAV. A fund management company (AMC) declares the NAV for …


Types of mutual funds

Mutual funds provide a variety of investment options. These mutual funds can be chosen based on your risk tolerance, financial goals, and time horizon. Here's how it works: Funds are based on the maturity period Funds that are open ended …


What are the ways through which mutual fund operates?

Mutual fund is a professionally-managed trust that pools in money from various individuals to invest in securities like stocks, bonds, short-term money market instruments and commodities. The mutual fund is managed by professional fund managers. They make and sell securities …