About MF
Mutual Funds
Overview
Mutual funds are great for investors who wish to invest in different kinds of investment schemes that have different goals but don't have the time or expertise to choose the most profitable stocks. Mutual fund investments offer the benefit in professional oversight, less transaction costs, as well as diversification, liquidity, and tax benefits.
Advantages of Mutual Fund
- One of the main advantages of investing in mutual funds is the fact that your funds are handled by experienced money managers who have many years of experience investing.
- Its performance can be evaluated in relation to the returns they provide. Mutual funds have historically provided higher returns than any other investment option, including Bank FDs.
- Since mutual funds are invested in a mix of bonds, stocks and so on. It is possible to have an array of portfolios that are diverse even with a modest sum of money, which helps to reduce risk too.
- Mutual funds are regulated by SEBI. The strict regulations ensure that mutual funds adhere to transparent procedures and that the investors' rights are safeguarded.
- You can also invest into tax saving funds called ELSS which applicable for tax deduction up to Rs 1.5 lakh/annum under Section 80C of the Income Tax Act, 1961.
Our Edge
Being one of the well-known distribution houses, we aim at helping you in financial planning and achieving long-term goals through our widespread network and team of financial advisors.
FAQs
A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities depending upon the scheme’s stated objective. The income earned through these investments and the capital appreciation realized is shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.
Following are the benefits of investing in Mutual Fund:
- Professional management of investment
- Opportunity available to small investors to invest in small amounts
- A large number of schemes available to choose from
- Better risk diversification as investment is distributed across a large number of assets
- Liquidity available to investors
- Benefit of economies of scale
- Tax benefits available to customer
Net Asset Value is the market value of the assets of the scheme minus its liabilities. The per unit NAV is the net asset value of the scheme divided by the number of units outstanding on the valuation date.
It is the price you pay when you invest in a scheme. It is also known as "Offer Price" and may include an entry load.
It is the price at which units are repurchased by the Mutual Fund from unit holders. It is based on daily NAV and may include exit load.
Yes, SEBI has made it mandatory to have PAN for mutual fund investments.
In order to comply with regulatory provisions under the Prevention of Money Laundering Act 2002, Rules issued there under and related guidelines/circulars issued by SEBI, KYC formalities are required to be completed for all Unit Holders, including Guardians and Power of Attorney holders, for any investment (whether new or additional purchase) of Rs. 50,000 or more in mutual funds. For the convenience of investors in mutual funds, all mutual funds have made special arrangements with CDSL Ventures Ltd. (CVL), a wholly owned subsidiary of Central Depository Services (India) Ltd. who in turn has "POS" (Point of Service) to help customer to register for KYC.
Attractive rates as applicable from time to time.
