Mutual Funds
A mutual fund is simply a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective.
The mutual fund will have a fund manager who is responsible for investing the pooled money into specific securities (usually stocks or bonds).
Mutual funds are one of the best investments ever created because they are very cost efficient and very easy to invest in (you don’t have to figure out which stocks or bonds to buy).
A mutual fund is a collection of stocks, bonds, or other securities owned by a group of investors and managed by a professional investment company. For an individual investor, having a diversified portfolio is difficult. Mutual funds helps the individual investors to invest in equity and debt securities simultaneously. When investors invest a particular amount in mutual funds, he becomes the unit holder of corresponding units. In turn, mutual funds invest unit holders’ money in stocks, bonds or other securities that earn interest or dividend. This money is distributed to the unit holders. If the fund gets money by selling some stocks at higher price the unit holders are liable to get the capital gains.
Buying a mutual fund is easy! The minimum investment is also very small. As little as Rs. 500 can be invested on a monthly basis. Just contact us to know more.
Because a mutual fund buys and sells large amounts of securities at a time, its transaction costs are lower than you as an individual would pay.
By owning "shares"(known as "units") in a mutual fund instead of owning individual stocks or bonds, your risk is spread out. The idea behind diversification is to invest in a number of assets so that a loss in any particular investment is minimized by gains in others. In other words, the more stocks and bonds you own, the less any one of them can hurt you.
The primary advantage of funds is the professional management of your money. Investors purchase funds because they do not have the time or the expertise to manage their own portfolio. A mutual fund is a relatively inexpensive way for a small investor to get a full-time manager to make and monitor the investments.
Our business model allows us to transact only in Regular Plans for Mutual Fund Schemes, earning a commission. Details regarding the same will be made available to clients at the time of investment decisioning.
Past performance is no guarantee of future performance. Investing involves risk. Some investments have more risk than others. The investment return and principal value will fluctuate and investor’s shares/units when sold may be worth more or less than the original cost. Fixed income investments are subject to interest rate risk, and their value will decline as interest rates rise. Asset allocation and diversification do not assure a profit or protect against loss in declining markets. There is no guarantee a Fund’s objectives will be achieved. The risks associated with each scheme of a mutual fund are explained more fully in each fund’s information documents i.e. Scheme Information Document (SID), Statement of Additional Information (SAI) and Key Information Memorandum (KIM). These are available online on the AMC websites or SEBI’s website. Investment Products do not assure any returns and are not insured by any government agency, they may lose value, and are not a deposit of or guaranteed by any bank or any bank affiliate. Historic returns will be presented to investors on their insistence.
