How To Invest In Mutual Funds India

Please verify your Email ID and Mobile Number today. Click Here to download free Acrobat Reader, you need Acrobat Reader 4. What is a Mutual Fund ? We 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. The Mutual Funds usually invest their funds in equities, how To Invest In Mutual Funds India, debentures, call money etc. Now a days there are MF which even invest in gold or other asset classes. The investments made by a Mutual Fund are marked to market on daily basis.

In other words, we can say that current market value of such investments is  calculated on daily basis. A common man is so much confused about the various kinds of Mutual Funds that he is afraid of investing in these funds as he can not differentiate between various types of Mutual Funds with fancy names. Open ended funds are allowed to issue and redeem units any time during the life of the scheme, but close ended funds can not issue new units except in case of bonus or rights issue. Reinvestment Schemes   The mutual fund schemes come with various combinations of the above categories. Therefore, we can have an Equity Fund which is open ended and is dividend paying plan.

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Before you invest, you must find out what kind of the scheme you are being asked to invest. How Does a Mutual Fund Scheme Different from a Portfolio Management Scheme ? On the other hand, in case of Portfolio Management Scheme, the funds of a particular investor remain identifiable and gains and losses for that portfolio are attributable to him only. Are MFs suitable for Small Investors or  Big investors ?

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Inspite of the in of efficiency and liquidity of post office savings, i feel you have many funds. Whether 3 years regular interval of mutual is available in such funds? In either case — are MFs suitable for Small Investors or  Big investors ? Investors are also india to Public Provident Funds, investments in the post office are safeguarded by the Government of To. In case of How Funds, allotment of invest portfolio to meet my objectives.

We have already mentioned that like all other investments in equities and debts, the investments in Mutual funds also carry risk. In case you are a small investor, then your investment cannot be spread into equity shares of various good companies due to high price of such shares. Mutual Funds are in a much better position to effectively spread your investments across various sectors and among several products available in the market. This is called risk diversification and can effectively shield the steep slide in the value of your investments. Thus, we can say that Mutual funds are better options for investments as  they offer regular investors a chance to diversify their portfolios, which is something they may not be able to do if they decide to make direct investments in stock market or bond market. These are particularly good for small investors who have limited funds and are not aware of the intricacies of stock markets.

We are aware that investments in stock market are risky as the value of our investments goes up or down with the change in prices of the stocks where we have invested. Therefore, the biggest risk for an investor in Mutual Funds is the market risk. However, different Schemes of Mutual Funds have different risk profile, for example, the Debt Schemes are far less risk  than the equity funds. Hedge Funds are the investment portfolios which are aggressively managed and uses advanced investment strategies, such as leveraged, long, short and derivative positions in both domestic and international markets with a goal of generating high returns . In case of Hedged Funds, the number of investors is usually small and minimum investment required is large.

Moreover, they are more risky and generally the investor is not allowed to withdraw funds before a fixed tenure. Sale Price : It is the price you pay when you invest in a scheme and is also called “Offer Price”. It may include a sales load. Repurchase Price : – It is the price at which a Mutual Funds repurchases its units and it may include a back-end load. This is also called Bid Price. Redemption Price : It is the price at which open-ended schemes repurchase their units and close-ended schemes redeem their units on maturity.