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Apollo Green (108) Boat Unlisted (1150) ICEX (3.95) OYO (28) Goodluck Defence (375) NSE (1925) Orbis Financial (465)

Mutual Funds

A mutual fund pools money from many investors to invest in a diverse portfolio of securities like stocks and bonds. This allows you to own a piece of many companies, providing diversification and professional management that would be difficult to achieve on your own. Investing in mutual funds is a convenient, accessible way to grow wealth.

Why Choose Mutual Funds for Long-Term Wealth Creation ?

Mutual funds are one of the most effective investment options for individuals looking to build long-term wealth with professional management. By investing in mutual funds, investors gain exposures to diversified portfolios across equity, debt, and hybrid instruments. 

 

Mutual funds are suitable for beginners as well as experienced investors due to their flexibility, transparency, and regulatory oversight by SEBI. With options such as SIPs, tax-saving mutual funds (ELSS), and low-risk debt funds, investors can align  their financial goals with suitable mutual fund schemes. 

 

Choosing the right mutual funds based on risk appetite, investment horizon, and financial objectives is crucial for consistent returns.

Mutual Funds

Types of Mutual Funds We Have

Equity funds

An equity fund is a type of collective investment scheme that pools money from many investors to purchase a diversified portfolio of stocks (equities). The primary goal of an equity fund is to achieve long-term growth for investors by investing in companies with the potential for capital appreciation.

Growth, Value, or Index Funds

Growth funds seek high-potential companies expected to outpace market growth, potentially offering higher returns with higher risk, while value funds invest in undervalued companies with robust fundamentals, aiming to profit when the market recognizes their true worth.

Fixed-income funds (bond funds)

Fixed-income funds, also known as debt mutual funds, are a type of investment fund that pools money from investors to buy a portfolio of fixed-income securities like government and corporate bonds, certificates of deposit, and other debt instruments.

Money market funds

A money market fund is a type of mutual fund that invests in highly liquid, low-risk, short-term debt instruments like Treasury Bills, Commercial Papers, and Certificates of Deposit.

  • Q.1 _ How the Mutual Funds work ?

    When you invest in a mutual fund, your money is combined with that of other investors. A
    professional fund manager then invests this capital according to the fund's specific
    strategy. The fund's value is calculated daily as the Net Asset Value (NAV), which is the
    total value of its assets minus liabilities, divided by the number of shares. This is the price
    at which shares are bought and sold

  • Q.2 _ What are the Key Components and Structure of Mutual Fund ?

    A mutual fund is managed by an investment advisor who makes the day-to-day decisions.
    The fund's assets are held safely by a custodian, and a transfer agent handles all
    shareholder transactions. Before investing, it's crucial to read the prospectus, which
    outlines the fund's objectives, risks, and fees.

  • Q.3 _ Understanding Mutual Fund Fees

    Fees can significantly impact your returns. The expense ratio is the total annual cost of
    operating the fund, expressed as a percentage of your investment. Some funds also charge
    a sales load, which is an upfront (front-end) or deferred (back-end) fee. Choosing low-cost
    funds is a key factor in long-term investing success.

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