MUTUAL FUNDS

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Mutual Funds

A Mutual Fund is an investment that pools money from individuals and invests it according to the fund's stated objectives.

Mutual fund is an ideal tool for people who want to invest but don't want to be bothered with deciphering the numbers and deciding whether the stock is a good buy or not. It can be the most important ingredient in the investment plan for those wanting to build their wealth over a long period of time. It’s one of the most popular investment avenues in today’s dynamic and fast evolving markets. Mutual Funds can help you in virtually entering the equity market with hands-off approach. There is a wide range of Mutual Fund available in the market, each one having diverse specifications to meet your requirements.

Benefits of Investing in a Mutual Fund

Portfolio Diversification: Mutual funds are a convenient and affordable way of gaining access to a wide range of investments that would be very difficult and time-consuming to purchase and manage individually.

Professional Fund Management: Actively managed mutual funds also give you the benefit of professional fund management. The funds are selected by tracking the markets, analyzing investments and implementing a consistent investment strategy.

Choice: The large amount of Mutual Funds offers the investor a wide variety of funds to choose from. An investor can pick up a scheme depending upon his risk or return profile.

Flexibility: A wide range of mutual funds are available to help meet the needs of every type of investor, from conservative to very aggressive. It also helps you to meet a variety of investment goals, from an emergency fund to saving for a vacation, education or retirement.

Liquidity: In open-ended schemes, you can get your money back promptly at Net Asset Value (NAV) related prices from the Mutual Fund.

Return Potential: Over a long term, Mutual Funds have the potential to provide a higher return as the funds are invested in a diversified basket of selected securities.

Low Costs: Mutual Funds are a relatively less expensive way to invest compared to directly investing in the capital markets because the benefits of scale in brokerage and other fees translate into lower costs for investors.

Transparency: Mutual Funds regularly provide investors with information on the value of their investments. It also provides complete portfolio disclosure of the investments made in various schemes and also the proportion invested in each asset type.

Well Regulated: All Mutual Funds are registered with SEBI and they function within the provisions of strict regulations designed to protect the interests of investors. The operations of Mutual Funds are regularly monitored by SEBI.