Mutual fund Know Everything About mutual fund in English
Mutual fund: It Mutual fund Know Everything, which is called mutual fund in English, but its English name is more popular, is a type of group investment. Groups of investors invest together in stocks, short-term investments or other securities. UTI AMC is the oldest mutual fund company in India.[1] 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. It is calculated by dividing the total value of the fund by the total number of shares purchased by investors.
Sequence
1 type
1.1 Index Scheme
1.2 Miscellaneous Scheme
1.3 Open ended and close ended funds
1.4 Large Cap and Mid Cap
1.5 Balanced Fund
1.6 Growth Fund
1.7 Value Fund
1.8 Money Market Funds
2 How Mutual Funds are formed?
3 Mutual Funds in India
4 references
5 see also
6 external links
Type
Equity schemes of mutual funds offer a wide range of options such as 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.
Open ended and close ended funds
There are two types of units according to the 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. For this reason the unit capital of an open-ended scheme can fluctuate like a share, whereas it is not so in the case of a close-ended scheme. An open-ended scheme 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 ensured at the time of admission. In a closed ended plan, the subscription can be taken only once and redemption can also take place within the minimum stipulated time frame. In this way the liquidity of the close ended scheme gets reduced.
Large Cap and Mid Cap
People with high risk appetite can opt for small or mid cap schemes. This scheme invests in small and medium companies with good potential. These are high in risk but have the potential to deliver high returns. Long term investments in the stock market are profitable and short term investors have higher risks. Large cap mutual funds invest in the stock of a bluechip company. Investing in these is considered safe. This is because information about them is available everywhere. Mid cap mutual funds invest in medium and small sized companies.
balanced fund: Mutual fund Know Everything
Balanced funds are called hybrid funds. These are common stock, preferred stock, bonds and short term bonds. These funds are profitable as they also reduce the risk factor and ensure the safety of capital to a great extent.
growth fund
Efforts are made to get maximum benefit with the help of Growth Fund. These are invested in companies that make rapid progress in the market. Investing in these funds is for higher returns and hence the risk is high.
dividend fund
If an investor invests in Dividend Fund. So the dividend given by the companies from time to time also keeps on getting the investor. This cash amount is deposited in the account of the investor.
value fund
These are funds that give preference to safety. They have relatively little profit, but the potential for loss is very low.
money market fund
Money markets are generally considered the safest funds. Their main objective is to keep the invested capital safe.
How Mutual Funds are formed? Mutual fund Know Everything
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. Custodian is in possession of securities of various schemes approved by SEBI.
The general supervision and control over the AMC rests with the trustees. He conducts the functions of the fund and sees 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.
Apart from this, 50% of the directors of the AMC should be independent. All mutual funds have to get SEBI registration before opening any scheme.
Mutual funds in india
When any fund house comes out with a new scheme in the market, then it is mandatory to provide all the terms, conditions and other information related to it to the Securities and Exchange Board of India (SEBI). 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.
Expenditure on various items such as advisory
Expenditure on various items such as advisory, custodial, audit, transfer agent and trustee fees and agent commission etc. is involved in operating a mutual fund. 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.
In a scheme which has lesser expenses, the fund house will have more money for the investor and will also expect 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 scheme comes under balanced scheme. Equity schemes are more risky than balanced schemes.
Share Market is a market where shares of many different companies are bought and sold. It is like any other normal market where people go to buy and sell shares. Its work is no longer limited to offline, but it has now been done online as well.
If you must have seen the news, then many times you must have heard that what is Share Market (What is Share Market in Hindi) but few people know how to buy shares and how many stock markets are there in India.
Today everyone looks for ways to earn money. Who does not know the importance of money in life?
Without money, we cannot get a good life, as well as we cannot complete the work we need without it. Well, there are many ways to earn money.
From childhood, he studies to make a good career. After that some people do jobs or jobs. Some people take the path of business to earn money in their life.
In this post we will talk about how to earn money from share market (Share Market Guide in Hindi) as well as know which are the best share market books to download in Hindi free to work in it.
So without delay let’s start and know what is the guide to working in share market?
Conclusion: Mutual fund Know Everything
In India, the role of middlemen for mutual fund investments 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 the Central Depository Services, a part of BSE, and the registrar CAMS-Karvy to develop a similar platform.
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. Custodian is in possession of securities of various schemes approved by SEBI.
The general supervision and control over the AMC rests with the trustees. He conducts the functions of the fund and sees that the rules of SEBI 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.
Comment on the postingtree
External Link