WHAT IS MUTUAL FUND & WHY ONE SHOULD INVEST IN MUTUAL FUND?
Investors who want to share a common financial goal and do not want to take risk of capital market directly ,they pour the fund in a mutual funds ,which is a trust and manage the fund of investors by the investment committee under the leadership of Fund Manager. Following is a cycle of Mutual Fund.
INVESTORS
POOL THEIR MONEY IN MUTUAL FUND
MUTUAL FUND INVEST IN SECURITIES
GENERATES PROFIT
RETURNS PASSED BACK TO INVESTORS
RETURNS BY WAY OF DIVIDEND IS TAX FREE
NO INCOME TAX IF, INVESTOR BOOK PROFIT AFTER 1 YEAR
MF is a good vehicle to ride for new comers in capital market, which allows you to take exposure in the instruments, which is out of reach for a common man and we get expert services of a professional fund manager who looks after our valuable fund. Now MF is
become a fancy for all category of investors as the return in the last 3 years are fantastic.
MF does not give any assurance in terms of return, but history has proved that the
Investment in MF is safe, liquid, highly remunerative, convenient, Transparent, Tax benefit and free of tense . There are categories in MF depending on its life, investment objective etc like:
Based on assets class: Equity, Debt, Money Market, Gilt fund.
Based in time period: Open Ended fund, close Ended fund, Interval fund.
Based on investment Objective : Income fund, Growth fund, Hybrid fund.
A small investor can also take benefit of fluctuation of capital marker through MF by investing via SIP ( Systematic Investment Plan) method which is just like bank R D a/c.
Small amount of Rs: 100/= per month can be invested in MF and there is a variety of funds available as sectorial fund, Large cap fund , Small & mid cap fund, Fixed Maturity fund ,Balance fund ,Gilt fund ,Income Fund etc. Investment is flexible so it is convenient and ess risky. Secondly SEBI , the mutual Fund regulator, has clearly defined rules, which govern MF.It takes care of investors. All open ended MF disclose their Net Assets Value ( NAV ) daily and entire portfolio on monthly basis.
Investors are advised to invest through AMFI registered advisors only and no cash transactions are allowed in cash. More ever Pan No is compulsory in all ransactions.
From 1 st Feb 2008, If investment is more than 50,000 /-, KYC Form is ompulsory,
this is available on our Website for your convenience. We are AMFI registered MF advisor and providing professional services to small and HNI clients. Trust can also invest in government approved MF. Daily NAV is also available on our website just by clicking on latest NAV. Online valuation can be available.
