Mutual Funds
A mutual fund is simply a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective.
The mutual fund will have a fund manager who is responsible for investing the pooled money into specific securities (usually stocks or bonds).
Mutual funds are one of the best investments ever created because they are very cost efficient and very easy to invest in (you don’t have to figure out which stocks or bonds to buy).
A mutual fund is a collection of stocks, bonds, or other securities owned by a group of investors and managed by a professional investment company. For an individual investor, having a diversified portfolio is difficult. Mutual funds helps the individual investors to invest in equity and debt securities simultaneously. When investors invest a particular amount in mutual funds, he becomes the unit holder of corresponding units. In turn, mutual funds invest unit holders’ money in stocks, bonds or other securities that earn interest or dividend. This money is distributed to the unit holders. If the fund gets money by selling some stocks at higher price the unit holders are liable to get the capital gains.
Buying a mutual fund is easy! The minimum investment is also very small. As little as Rs. 500 can be invested on a monthly basis. Just contact us to know more.
Because a mutual fund buys and sells large amounts of securities at a time, its transaction costs are lower than you as an individual would pay.
By owning "shares"(known as "units") in a mutual fund instead of owning individual stocks or bonds, your risk is spread out. The idea behind diversification is to invest in a number of assets so that a loss in any particular investment is minimized by gains in others. In other words, the more stocks and bonds you own, the less any one of them can hurt you.
The primary advantage of funds is the professional management of your money. Investors purchase funds because they do not have the time or the expertise to manage their own portfolio. A mutual fund is a relatively inexpensive way for a small investor to get a full-time manager to make and monitor the investments.
The mutual fund industry in India has witnessed remarkable growth over the past two decades, emerging as a key component of the country’s investment landscape. With increasing financial literacy, favorable regulatory reforms, and rising disposable incomes, more investors are turning to mutual funds for wealth creation and diversification.
As of September 2023, the industry’s assets under management (AUM) exceeded ₹45 lakh crore, marking a significant rise from just ₹5 lakh crore in 2010. This growth has been driven by both retail and institutional participation. The introduction of systematic investment plans (SIPs) has been a game-changer, with monthly SIP contributions crossing ₹15,000 crore in FY 2023-24, reflecting growing investor confidence and a shift towards disciplined investing.
Additionally, the number of mutual fund folios has crossed 13 crore, highlighting the increasing penetration of mutual funds across urban and rural India. The push towards digital platforms and the ease of online investing have made mutual funds even more accessible to a wider audience, particularly the younger generation and first-time investors.
The growth trajectory of the Indian mutual fund industry is supported by a robust regulatory framework, transparency, and a wide array of investment products catering to different risk profiles and investment horizons. As the Indian economy continues to expand, the mutual fund sector is poised for sustained growth, offering vast opportunities for investors seeking long-term financial goals.
Risk Factors – Investments in Mutual Funds are subject to Market Risks. Read all scheme related documents carefully before investing. Mutual Fund Schemes do not assure or guarantee any returns. Past performances of any Mutual Fund Scheme may or may not be sustained in future. There is no guarantee that the investment objective of any suggested scheme shall be achieved. All existing and prospective investors are advised to check and evaluate the Exit loads and other cost structure (TER) applicable at the time of making the investment before finalizing on any investment decision for Mutual Funds schemes. We deal in Regular Plans only for Mutual Fund Schemes and earn a Trailing Commission on client investments. Disclosure For Commission earnings is made to clients at the time of investments. Option of Direct Plan for every Mutual Fund Scheme is available to investors offering advantage of lower expense ratio. We are not entitled to earn any commission on Direct plans. Hence we do not deal in Direct Plans.
AMFI Registered Mutual Fund Distributor | ARN- 284296 | Date of initial Registration: DD/MM/YYYY | Current validity: DD/MM/YYYY
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