Financial Mutual Funds

MUTUAL

FUNDS

Mangla Consulting

Concept of Mutual Funds

A Mutual Fund is a pool of money from a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realised are shared by its unit holders or investors in proportion to the number of units owned by them. Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.

Benefits of Investing in Mutual Fund

  • Professional Management
  • Convenient Administration
  • Low Costs
  • Transparency
  • Choice of schemes
  • Well regulated
  • Diversification
  • Return Potential
  • Liquidity
  • Flexibility
  • Tax benefits

Types of Schemes in Mutual Funds

  • Open Ended Schemes
  • Growth Schemes
  • Balanced Schemes
  • Tax Saving Schemes
  • Index Schemes
  • Closed Ended Schemes
  • Income Schemes
  • Money Market Schemes
  • Sector Specific Schemes