A mutual fund is a special form of trust which pools in money from many investors and invests the money in stocks, bonds, short-term money-market instruments, other securities or assets, or some combination of these investments. Mutual Funds have many advantages compared to other investments including Professional Management, Diversification, Economy of Scale, Liquidity, Simplicity etc. Investors should examine the above features carefully to understand how they can use mutual fund investments effectively. Mutual Funds setup different Schemes that investors can choose to invest in, offering a variety of investment patterns. Each scheme is defined by its investment objective which in turn decides the scheme’s asset allocation and investment strategy.
Investing in a Mutual Fund is simple. Note that you do not need a Demat account to invest in Mutual Funds. First time investors are usually required to fill out a simple application form and attach supporting documents. Repeat investors can usually invest using a simple transaction slip, by just mentioning their folio number. A cheque for the investment amount needs to be attached.
To know more about Mutual Fund investment, please contact us