Uploaded on Apr 12, 2022
Online Mutual Fund Investing is available through Motilal Oswal. Learn about the best-performing mutual funds in India as well as the best mutual funds to invest in right now.
Online Mutual Fund Investing in India - Motilal Oswal Mutual Fund Planning
WHAT IS MUTUAL FUND? • A mutual fund is a trust that raises funds 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 determined by the board of directors from time to time. • A mutual fund, in its most basic form, is a common pool of money into which investors put their money. This sum is subsequently invested according to the fund's investment objective. • 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 structured as a trust that includes a sponsor, trustees, an asset management company (AMC), and a custodian. • The trust is established by a sponsor, who is analogous to a company's promoter. The trustees hold the mutual fund's assets for the benefit of the unit holders. • The custodian, who is registered with the Securities and Exchange Board of India, holds the securities of the fund's various schemes in custody (SEBI). • The trustees, who have considerable oversight and guidance powers, govern the AMC. They monitor the company's performance and make sure it adheres to SEBI requirements. • 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 advantages of investing in a mutual fund is that every investor has access to professional money management and experience (even with a little commitment). • Furthermore, a small-dollar investor would find it incredibly difficult to put together a diverse investment portfolio on his own. In a mutual fund, each participant 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 group of people who pool their money and invest it in stocks, bonds, and other financial instruments. • 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 !!!
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