Sunday, October 13, 2013

Basic Information about Mutual Funds



Mutual Fund also called an investment vehicle that is made up of a pool of funds collected fund many investors and invested in Stocks, Bonds and money instruments. Mutual funds are maintained by Asset Management Company (AMC). For that Asset Management Company will charge little fees as commissions or Fees. Each fund will be management by Fund Managers they will have team where in the team analysis and prepare a portfolio for particular funds.

Type of Schemes

Open ended schemes
Close ended schemes

Open ended you can buy any time and sell any time, Net Asset Value will change on daily basis.

Close Ended Schemes AMC will announce the scheme and particular schemes will be closed for certain years where you cannot exit or buy any units during the time period.

Type of Plan

Equity Funds
Debt Funds
Diversified Funds
Gilt or Gold Funds
Money Market Funds
Sector Specific Funds ( Eg Bank, Steel, Manufacturing etc.,)
Index Funds
Tax Saving Funds

Type of payments

Dividend Paying
Growth Schemes or reinvestment

Mutual Fund topic cannot be explained in small blog, so please do more research before investing.

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