Invest In Mutual Funds Online - Start Mutual Fund Investment Online | Motilal Oswal


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Uploaded on Dec 14, 2021

Online Mutual Fund Investments - Invest in Mutual Funds online at Motilal Oswal. Know more about the top performing mutual funds in India

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Invest In Mutual Funds Online - Start Mutual Fund Investment Online | Motilal Oswal

WHAT IS MUTUAL FUND? A mutual fund is a trust that raises money by selling units to the general public or a segment of the general public under one or more schemes for investing in securities, money market instruments, gold or gold-related instruments, real estate assets, and other assets and instruments as the board may specify from time to time. In its most basic form, a mutual fund is a common pool of money into which investors invest their money. This total is then invested in accordance with the fund's investment goal. Stocks, bonds, money market instruments, gold, real estate, and other comparable assets might all be used to invest the funds. These funds are managed by money managers or fund managers who, by investing in accordance with the investment aim, attempt to increase the value of the fund for investors. HOW IS A MUTUAL FUND SET UP? A mutual fund is organised as a trust with a sponsor, trustees, an asset management company (AMC), and a custodian. A sponsor, similar to a company's promoter, establishes the trust. The mutual fund's property is held by the trustees for the benefit of the unit holders. The securities of the fund's various schemes are held in custody by the custodian, who is registered with the securities and exchange board of india (SEBI). The AMC is governed by the trustees, who have broad powers of supervision and guidance. They keep track of the company's performance and ensure that it complies with SEBI regulations. Professional money managers with experience investing in equities, debt, or both are employed by the amc, who invest and manage the funds raised from investors. WHAT IS THE BENEFIT OF INVESTING IN MUTUAL FUND? One of the most significant benefits of participating in a mutual fund is that every investor (even with a little commitment) has access to professional money management and experience. Furthermore, an investor with a modest quantity of money would find it extremely difficult to build a diversified portfolio of investments on his own. Each investor in a mutual fund receives a proportional share of the scheme's return. The fund distributes a proportional percentage of the gain (or loss) to each unit. Each investor receives a portfolio report that details all of their investments as well as the mutual fund's returns. CONCLUSION A mutual fund is a collection of people who pool their money and invest it in stocks, bonds, and other securities. Professional management, diversity, economies of scale, simplicity, and liquidity are all advantages of mutual funds. Mutual funds come in a variety of shapes and sizes. You can categorise funds by asset type, investment strategy and so on. THANK YOU !!!