MUTUAL FUND:-
Mutual fund, which is called mutual fund in Hindi, but its English name is more popular, is a type of group investment. Groups of investors together invest in stocks, short-term investments or other securities. UTI AMC is the oldest mutual fund company in India. A mutual fund has a fund manager who determines the fund’s investments and maintains profit and loss accounts. The profits and losses incurred in this way are distributed among the investors. Mutual funds are an accessible route for those who wish to invest even if they do not have sufficient knowledge of the stock market. The mutual fund operator (company) collects the investment amount of all the investors and gives them some convenience. Also charges a fee. Then invests this amount in the market for them. The advantage of investing in these is that the investor does not have to worry about when you buy or sell shares, as this concern is with the fund manager. He is the one who maintains the investment of the investor. Another advantage is that small investors can invest a very small amount like up to Rs.100 per month. In such a situation, they have to take a systematic investment plan, in which this amount is transferred monthly directly from the bank to the fund. The share price of a mutual fund is called the Net Asset Value or NAV.
To calculate this, the total value of the fund is divided by the total number of shares purchased by the investors.
type:-
There are many options available in equity schemes of mutual funds like index funds, diversified funds, large-cap funds, mid-cap schemes and tax-saving schemes. Investors can choose the plan that best suits the investment objectives and goals.
index plan-
Investors who do not want a call for a particular stock can invest in an index based scheme i.e. index scheme as the index scheme invests only in those particular stocks which are part of a particular index. If the index goes up, the investors are in profit.
miscellaneous plan:-
It is also called diversified scheme. If you do not want to stay invested in a particular sector or any one segment of the economy, then the option of a diversified scheme is available.
Large-Cap-
Large-cap funds are invested only in large and blue-chip companies. These companies already have a good record. Due to their large capital base and business, their performance in the volatile market is almost permanent. This is a better option for such investors who can take less risk regarding investment.
ELSS
Equity-Linked Savings Schemes (ELSS) are tax-saving mutual funds. Under Section 80C of Income Tax, you can get tax benefits on investments up to Rs 1.5 lakh on the money invested in it. 65 per cent of this fund is invested in equities or related securities. Thus, this option provides tax benefits along with better returns. It has a lock-in period of three years.
ELSS
Equity-Li
nked Savings Schemes (ELSS) are tax-saving mutual funds. Under Section 80C of Income Tax, you can get tax benefits on investments up to Rs 1.5 lakh on the money invested in it. 65 per cent of this fund is invested in equities or related securities. Thus, this option provides tax benefits along with better returns. It has a lock-in period of three years.
Equity-Oriented Hybrid FundDS
25 per cent of multicap funds are invested in small, mid and large cap funds. 65% of flexicap funds are invested in equities and related instruments and there is no limit to invest in small, mid and large cap funds. Largecap funds have a higher share in flexicap funds, so there will be stable growth and small-cap, mid-cap securities help in boosting returns. Investors who can take high risk to earn great returns can decide to invest in these funds.
Equity-Oriented Hybrid Funds
65 per cent of this fund is invested in equities and the rest in debt securities. The debt portion of the portfolio balances the risk. This fund gives moderate returns on the money invested and is best suited for investors who cannot take high risk
Open ended and close ended funds:-
There are two types of units as per issue- Open-ended fund units can be issued or paid for at any time during the life of the scheme. Close ended funds cannot issue any new units under the scheme except bonus or rights issue. Open ended plans can be entered or exited at any time and sometimes they have a lock-in period within which redemption cannot take place, so these should be assured at the time of entry. In a closed ended plan, the subscription can be taken only once and redemption can also happen within the minimum stipulated time frame. In this way the liquidity of the close ended scheme gets reduced.
How Mutual Funds are formed?
Mutual Funds are formed as a Trust which is under the Sponsor, Trustee, Asset Management Company (AMC) and Custodian. The trust is established by one or more sponsors. Just like there are promoters in a company, there are sponsors in mutual funds. The trustees of a mutual fund hold the assets of the fund for the benefit of the investors. SEBI recognized Asset Management Company (AMC) administers funds by investing capital in various securities. The Custodian holds the securities of various schemes approved by SEBI. The general supervision and control over the AMC rests with the Trustees. They conduct the functions of the fund and ensure that the rules of SEBI are complied with. As per SEBI rules, the director of the trustee company or two-third of the members of the board of trustees should be independent so that they are not associated with the sponsor.
mutual funds in India:-
By the way, there are many mutual fund schemes in India and when any fund house comes out with a new scheme in the market, then the information about all the terms, conditions and other things related to it is compulsorily available to the Securities and Exchange Board of India (SEBI). does it. The document through which this information is given to SEBI is called ‘Scheme Offer Document’. In this, sufficient information related to investment objective, risk factors, load and other expenses etc. is given. In operating a mutual fund, expenditure is incurred on many items like advisory, custodial, audit, transfer agent and trustee fees and agent commission etc. Apart from this, it is also mentioned that what are the charges that the investor will have to pay for investing in the scheme, such as entry load, exit load, switching charges, recurring expenses, etc. The plan in which the expenses are less, The fund house will have more money for the investor and this will also lead to higher returns. Such schemes are more profitable for the investors. Under any scheme, if more than 65 percent of the amount is to be invested in equity, then such a plan is called an equity plan. If the company is going to invest equal amount in equity and debt, then such a plan comes under balanced scheme. Equity schemes are more risky than balanced schemes.
In India, the role of intermediaries for investing in mutual funds will be eliminated by 2010. National Stock Exchange i.e. NSE and NSDL are jointly developing a trading platform through which units of mutual funds can be bought or sold directly. To avoid monopoly, the Association of Mutual Funds in India (Amfi) has asked Central Depository Services, a part of BSE, and the registrar CAMS- Karvy to develop a similar platform.
Q.25 per cent of multicap funds are invested in small, mid and large cap funds. 65% of flexicap funds are invested in equities and related instruments and there is no limit to invest in small, mid and large cap funds. Largecap funds have a higher share in flexicap funds, so there will be stable growth and small-cap, mid-cap securities help in boosting returns. Investors who can take high risk to earn great returns can decide to invest in these funds.
10 best mutual funds to invest :-
We chose two schemes from five different categories. These categories include aggressive hybrid, large cap, midcap, small cap and multi cap.
They may not match the goals and risk profile. Keeping this in view, we have made a list of top 10 mutual fund schemes. In this, two schemes have been selected from five different categories. These categories include aggressive hybrid, largecap, midcap, smallcap and multicap. We believe this should be enough for regular mutual fund investors.
List of top 10 schemes:-
1. Axis Midcap Fund
2. Mirae Asset Large Cap Fund
3. Parag Parekh Long Term Equity Fund
4. Kotak Standard Multicap Fund
5. Axis Midcap Fund
6. DSP Midcap Fund
7. Axis Smallcap Fund
8. SBI Small Cap Fund
9. SBI Equity Hybrid Fund
10. Mirae Asset Hybrid Equity Fund
Mutual Fund Future
You will get great returns by investing in Systematic Investment Plans of Mutual Funds. You can get up to Rs 50 lakh by investing 7 years in mutual fund SIP. To secure the future of your children, you have to invest 40 thousand rupees every month in SIP for 7 years.
For this you have to make SIP in a good mutual fund. You will get great returns by investing in Systematic Investment Plans of Mutual Funds. You can get up to Rs 50 lakh by investing 7 years in mutual fund SIP.
To secure the future of your children, you have to invest 40 thousand rupees every month in SIP for 7 years. If the market behaves well and you get an average return of 12 per cent every year.
Mutual fund investments are subject to market risks. You should do thorough research before investing in it. Apart from this, before investing in mutual fund SIP, definitely take the advice of experts. Then only you should invest here.
A rich garden contains many different types of plants – flowering shrubs, trees, grasses, and so many more. They all contribute differently to the ecosystem. People have different preferences for what they want in their garden. Just like that, there are different types of mutual funds that cater to the different needs and tastes of individuals.
Mutual funds can be broadly classified into five types depending on the assets they invest in. Let us have a look at the types before we explore them in detail.
1. Equity Funds – These mutual funds invest most of the fund’s money in stocks of different companies.
2. Debt Funds – Mutual funds which mainly invest in fixed income securities like government bonds, corporate bonds, debentures etc. are called debt funds.
3.Hybrid Funds – Any guesses about this one? As the name might already suggest, hybrid funds invest in a mix of equities and fixed income securities.
4.Solution Oriented Schemes – These mutual funds are slightly different from the above 3. These plans are designed to meet a specific goal, such as creating a retirement plan or funding a child’s educational expenses.
5.Other Schemes – Apart from these, there are other types like Index Funds and Fund of Funds. Don’t worry about these yet. We will cover them in a later step.
TYPES OF EQUITY MUTUAL FUNDS
Equity mutual funds invest most of the money in shares of various companies. Want to grow your money and become rich in the long run? So these funds are your friend.
If you want to go on a trek to a mountain top, you have to be prepared to risk at least a few scratches. The same happens with equity mutual funds. They can give you high returns in the long run but as long as you are willing to take a little risk. If you are able to do this, you can make inflation-beating returns in the long run!
Even equity mutual funds are further classified depending on the type of companies or shares they invest iAre you looking for top or best mutual funds? If your answer is ‘yes’ then we can help you with this task. Often mutual fund investors start their investment journey by typing ‘best mutual funds’ on the surge engine. It is true that they get some or the other list of top mutual funds. But, does this list make them wealthy? The answer is a bit difficult .n. Let’s take a look at.
Large-Cap
Large-cap funds are invested only in large and blue-chip companies. These companies already have a good record. Due to their large capital base and business, their performance in the volatile market is almost permanent. This is a better option for such investors who can take less risk regarding investment.