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Mutual Funds

Mutual Funds

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What are Mutual Funds?

It is a trust that collects money from several investors who share a common investment objective. Then, it invests the money in equities, bonds, money market instruments and/or other securities. Each investor owns units, which represent a portion of the holdings of the fund. The income/gains generated from this collective investment is distributed proportionately amongst the investors after deducting certain expenses, by calculating a scheme’s Net Asset Value or NAV.
Essentially, the money pooled in by a large number of people (or investors) is what makes up a Mutual Fund. This fund is managed by a professional fund manager.

Types of Mutual Funds

Equity or Growth Funds

Equity mutual funds buy stocks of a collection of publicly traded companies. They have a higher potential for growth but volatility in value. The younger you are, the more your portfolio should include equity funds as you get more time to tackle inevitable ups and downs in market value. A growth fund portfolio is made up of companies that register fast-paced progress and can deliver higher returns to investors.

Industry Or Sector Funds

These mutual funds focus on a particular industry, such as technology, oil and gas, or health care. Investors who want exposure of different industries can put money in this fund. Ownership in such different sector funds helps to diversify your portfolio which saves you from market volatility. Investing in sector funds can be done through active management funds or through passive management funds, the latter of which usually follow sector-specific indexes.

Value Funds

The investment style of the fund is another mutual fund differentiator. A value fund is a pooled investment that follows a strategy focusing on shares that are undervalued based on fundamental analysis. Value funds look for companies whose stock is (you guessed it) undervalued by the market. Value stocks are frequently well-established companies that offer investors dividend payments. Warren Buffett, one of the world’s most successful investors, is a value investor.

Bond Funds

It is a fixed-income mutual fund where investors are paid a fixed amount back on their initial investment. About one of every five funds in the market is a bond fund. These funds invest in government and corporate debt. Considered a safer investment than stocks, bond funds have less potential. Interest payments are made monthly and reflect the mix of all the different bonds in the fund, which means that the interest income distribution will vary monthly.

Apart from the above four, there are several other types and sub-categories such as Alternative Funds, Index Funds, Balanced Funds, Money Market, Large Cap, Mid Cap and Small Cap Funds, etc.

Why Mutual Funds?

Diversification

Get access to hundreds of individual stocks or bonds to invest in mutual funds for a more diversified portfolio.

Easy & Safe

Mutual Fund's affordability & professional management make it the easiest and the safest form of investing.

Professionally Managed

Professional Fund Managers manage your portfolio by analyzing current & potential holdings for better returns.

Liquidity

Money can directly be pulled out from the Mutual Funds and deposited into your bank account, anytime you want.

Affordable Investing

Get in the game of investing with as low as investing Rs. 500 through SIP and see your money grow over time.

Transparent

All Mutual Funds holdings are publicly available which ensures the investors get what they pay for.

Auto Reinvestment

Reinvest all your capital gains and dividends into your mutual funds automatically without any service charges.

Multiple Fund Varieties

The availability of different mutual funds allows you to build a more diversified investment portfolio.

Peaceful Investing

Habit of small and steady investing giving high returns attains greater peace of mind to you.

It is our firm commitment to have a deeper understanding of your financial situation and and come up with best possible solutions, everytime. We inspect before we diagnose. It takes time but it’s all worth it in the end.

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