A mutual fund is a financial intermediary which allows a group of investors to pool in their money with a predetermined investment objective. A qualified fund manager is appointed, who is responsible for investing the pooled money into specific securities and asset classes (usually stocks or bonds).
When you invest in a mutual fund, you buy a share (or portion) of the mutual fund.
We advise and service clients who wish to invest in any mutual fund available in the market. We also provide the platform to buy, sell and monitor your portfolio online.
Advantages of investing in a Mutual Fund
If someone told you that there is an investment option that is managed by an expert, has an expert looking into it, and lets you get started with even a small amount, would you be interested? Mutual funds can offer you such advantages, and much more.
No large investment compulsory
Mutual funds allow you to make an investment, even if you have a very small amount to invest. This advantage makes it more attractive among investors.
Investing in a variety of instruments
Imagine ordering a thaali at your favourite restaurant where you can eat a variety of different foods in one affordable package! Mutual funds also work in a similar way.
Mutual Funds invest in a wide range of securities. This diversification reduces the risk by limiting the effect of a possible decline in the value of any one security. You achieve this diversification through a Mutual Fund with far less money than you can do on your own.
Mutual fund investments are managed by experienced and skilled professionals, who with the help of an investment research team, analyzes the performance & prospects of companies and selects suitable investments to achieve the objective of the scheme.
Easy access to your money
In open-ended mutual funds, you can redeem all or part of your units any time you wish. Some schemes do have a lock-in period where an investor cannot return the units until the completion of such a lock-in period. With close-ended schemes, you can sell your units on a stock exchange at the prevailing market price or avail of the facility of repurchase through Mutual Funds at NAV related prices which some close-ended and interval schemes offer you on maturity of scheme or periodically, as the case maybe.
Equity Linked Savings Schemes (ELSS) offer tax rebates to investors under Section 80C of the Income Tax Act. Also, Capital Gains from the above Mutual Funds are tax-free in the hands of the investor.
Mutual Funds buy and sell large amounts of securities at a time, thus help reducing transaction costs. Also, Mutual Funds in India have No Entry Load.
Entire portfolio of the Mutual Fund scheme is disclosed to investors on a regular basis. One of the few transparent investment vehicles available in the market today.
Regulated for investor protection:
The Mutual Fund industry is regulated by Association of Mutual Funds of India (AMFI) in order to safeguard investors’ interest.
Mutual Fund Classifications
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