Mutual Fund Concept
A Mutual Fund is a trust that pools the savings of 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 realized is shared by its unit holders in proportion to the number of units owned by them. Thus a 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. The flow chart below describes broadly the working of a mutual fund:
Advantages of Mutual Funds
- Professional Management
- Diversification
- Convenient Administration
- Return Potential
- Low Costs
- Liquidity
- Transparency
- Flexibility
- Choice of schemes
- Tax benefits
- Well regulated
Types of Mutual Funds schemes
- By Structure
- Open – Ended Schemes
- Close – Ended Schemes
- Interval Schemes
- By Investment Objectives
- Growth Schemes
- Income Schemes
- Balanced Schemes
- Money Market Schemes
- Other Schemes
- Tax Saving Schemes
- Special Schemes
- Index Schemes
- Sector Specific Schemes
Panam Capital Market LLP/Panam Shares and Services and Caerus Global Financial Services LLP are Mutual Fund Distributors registered with the Association of Mutual Funds in India (AMFI) and get compensated / paid by AMCs. We are neither certified financial planners nor Sebi registered investment advisors. Any recommendation given during interaction/conversation is only incidental to the main function of MF distribution and recommendations are only as allowed under the AMFI Guidelines, or the various circulars issued thereunder. All Mutual Funds are subject to market risks. Investor must read all scheme related documents, risk factors of various mutual fund schemes available in the Scheme Information Document (SID), Statement of Additional Information (SAI), Key Information Memorandum (KIM), etc before investing. The value of any investment may rise and/or fall as a result of market changes and this website is not intended to predict actual performance and/or success of any scheme or other investment product and no assurances are given with respect thereto. Past performance is not indicative of future returns.