MUTUAL FUND

It’s easy if you could invest your money and let someone else handle it professionally. Such services exist, but they require a large amount of capital or money to invest. What if you could take advantage of these services by investing small amounts and enjoy the benefits of professional financial management? This can be done by investing in Mutual Funds.

What are Mutual Funds?

An Mutual fund is one of the most popular investment options available today. An Mutual fund is a pool of funds jointly managed by a professional fund manager that is invested for the benefit of a group of investors. The fund's guidelines may vary, but all the regulations and guidelines are detailed in the agreement and are governed by regulatories.

The mutual fund portfolio is structured and maintained in accordance with the investment objectives described in the prospectus. Mutual funds provide small investors or individuals with access to portfolios of stocks, fixed income securities and other securities managed by professionals. Therefore, each participating shareholder pays for the profits and losses of the fund. Mutual funds invest in a large number of investments such as stocks,debts etc and performance is generally monitored as the total market capitalization of the fund changes. 

 Funds are managed by  financial professionals who have an excellent track record of managing investment portfolios. The team is backed by  analysts and experts who pick the best-performing stocks and assets that provide excellent returns for investors in the long run.

Best advantage of investing in mutual funds is you can invest a small amount regularly via a SIP (systematic investment plan). Also, you can decide the investment size. However, it cannot be less than the minimum investable amount. You can initiate or terminate a SIP as and when you need. 

Mutual funds come with no lock-in period. Lock-in period in which the investments once made cannot be withdrawn. Most mutual funds are open-ended, and they come with varying exit loads on redemption. Only ELSS mutual funds come with a lock-in period.

Mutual funds invest across various asset classes and thereby provide the benefit of diversification. This reduces the concentration of risk to a great extent. If one asset class fails to perform up to the expectations, then the other asset classes would make up for the 

If you would like to move your investments to a different fund of the same fund house, then you have an option to switch your investments to that fund from your existing fund. In case you see another fund having the potential to outperform the market or your investment objective changes and is in line with that of the new fund, then you can initiate the switch option.

Mutual funds provide fund plans that help investors meet all their financial goals, be it short-term or long-term. There are mutual fund schemes that suit every individual’s risk profile, investment horizon, and style of investments.