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Mutual Funds

Different investment avenues are available to investors. Mutual funds also offer good investment opportunities to the investors. Like all investments, they also carry certain risks. The investors should compare the risks and expected yields after adjustment of tax on various instruments while taking investment decisions. The investors may seek advice from experts and consultants including agents and distributors of mutual funds schemes while making investment decisions.
With an objective to make the investors aware of functioning of mutual funds, an attempt has been made to provide information in question-answer format which may help the investors in taking investment decisions.

What is a Mutual Fund?

A Mutual Fund is a professionally managed collective investment that pools money from many investors and invests the same in stocks, bonds, short-term money market instruments and other securities.
The mutual fund itself is a trust registered under the Indian Trust Act, and is initiated by a sponsor. The sponsor then appoints an asset management company (AMC) to manage the investment, marketing, accounting and other functions pertaining to the fund.
Every mutual fund has a fund manager who invests the money collected through subscription from different investors on behalf of the investors by buying / selling stocks, bonds etc. Various funds and schemes with different objectives can be introduced under the umbrella of a single Trust name.

What is an AMC?

Why invest in Mutual Fund?

What are the advantages of investing in Mutual Fund over Equity?

Scheme Structure

What is NFO? How do you invest in NFO?

What is meant by NAV? How is it calculated?

What is meant by SIP? How is it different from regular Mutual Fund Investment?

What is systematic withdrawal plan (swp)?

What is meant by Entry and Exit Load?

What is meant by Switch option in Mutual Fund Investment?

How do I know about current status of my Mutual Fund Investment?

Do I get any statement with details of my investment? What is the frequency of such statement?

Are there any taxes levied on Mutual Fund Investment?

Understand the rules and regulations of Mutual Fund investment

Which investment option (SIP / Lump sum) is better for Mutual Fund Investment?

Which investment plan (Growth / Dividend pay out / Dividend reinvestment) is better for Mutual Fund Investment?

How can the investors redress their complaints?

How do I select a Mutual Fund for my investment?

Can I withdraw my Mutual Fund investment any time?