Mutual Funds

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Mutual Funds

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  Mutual Funds

MutualFundWe can say that Mutual Fund is trusts which pool the savings of large number of investors and then reinvests those funds for earning profits and then distribute the dividend among the investors. In return for such services, Asset Management Companies charge small fees. Every Mutual Fund / launches different schemes, each with a specific objective. Each Mutual Fund Scheme is managed by a Fund Manager managed by the team of professionals.

Where does Mutual Funds usually invest their funds ?

The Mutual Funds usually invest their funds in equities, bonds, debentures, call money etc., depending on the objectives and terms of scheme floated by MF. 

What is NAV ?

NAV means Net Asset Value. The current market value of investments is calculated on daily basis. NAV is arrived at after deducting all liabilities (except unit capital) of the fund from the realizable value of all assets and dividing by number of units outstanding. Therefore, NAV on a particular day reflects the realizable value that the investor will get for each unit if the scheme is liquidated on that date. This NAV keeps on changing with the changes in the market rates of equity and bond markets. Therefore, the investments in Mutual Funds is not risk free, but a good managed Fund can give you regular and higher returns than when you can get from fixed deposits of a bank etc.

What is a SIP ?

SIP is a Systematic Investment Plan and it is a smart and hassle free mode for investing money in mutual funds. SIP allows you to invest a certain pre-determined amount at a regular interval (weekly, monthly, quarterly, etc.). A SIP is a planned approach towards investments and helps you inculcate the habit of saving and building wealth for the future.

Benefits of SIP

Disciplined Savings , Flexibility, Long-Term Gains & Convenience.