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Mutual Fund

Mutual fund is a collective pool of investible surplus funds of individual investors managed by expert fund managers to meet the common investment objective.

When an investor subscribes for the units of a mutual fund, he becomes part owner of the assets of the fund in the same proportion as his contribution amount put up with the corpus (the total amount of the fund).

Advantages of Investing in Mutual Funds:

  • Mutual Funds provide higher returns that can beat inflation to grow your money in the long run.
  • Mutual Fund investment decisions are taken by expert fund managers based on the intensive research and analysis of the companies where the funds are invested.
  • Indian Mutual Fund industry has very strict regulations and guidelines laid by SEBI.
  • Investments can be done in diversified industries hence they provide safer returns
  • Maintenance of mutual funds are cheaper since they do not require any demat account.
  • Money is liquid as payments are made by cheques or credited directly through to the bank account.
  • Some of the mutual funds ELSS (Equity Linked Savings Schemes) provide tax benefits under Sec 80C.

Classifications of Mutual Funds:

Based on Tenure:

1) Open Ended Schemes: They can be bought or sold at any time at the prevailing NAV and do not have any fixed tenure.

2) Close Ended Schemes: They have a fixed tenure with a fixed corpus  available during a specified period of time with a defined maturity date.

Based on Asset Class:
1) Equity Funds: They are invested in stocks.
The Equity Funds are sub-classified depending upon their investment objective, as follows:

  • Diversified Equity Funds
  • Sector Specific Funds
  • Large Cap Funds
  • Mid Cap Funds
  • Small Cap Funds
  • Multi Cap Funds

Equity investments are meant for a longer time horizon, thus Equity funds rank high on the risk-return matrix.

2) Debt Funds: A debt fund may invest in short-term or long-term bonds, securitized products, money market instruments or floating rate debt.

3)  Hybrid Funds: They are invested partially in stocks and partially in money market

4)   Real Funds: They are invested in commodities

Based on Investment Philosophy:

1Diversified Equity Funds: The funds are diversified across sectors to reduce the overall portfolio risk.
2Sector Funds: They are invested in a particular sector, like Manufacturing

3Index Funds: track the components of a market index, such as the Standard & Poors 500 Index (S&P 500). An index mutual fund is said to provide broad market exposure, low operating expenses and low portfolio turnover.

4) Exchange Traded Funds: Exchange Traded Funds (ETFs) are open ended mutual funds that are passively managed and most of them seek to mirror the return of an index, a commodity or a basket of assets.

5. Fixed Maturity Plans: They invest in fixed income instruments, like bonds, government securities, money market instruments having a fixed maturity date. It could be 15 days, 30, 90, 141, 180 or even 365 days.

Mutual Funds are great methods to save tax and plan retirement. One can start SIPs early in tax saving funds so that when financial year ends you are in no hurry and at the same time your tax savings are properly planned. Similarly, investing through SIPs in mutual funds is a perfect planning to retire rich. Start early and even a monthly investment of Rs 2000 - 5000/-  can make you crorepati when you retire - Start your retirement planning now!

We are one of the best mutual fund agents and advisor in Delhi NCR for investing in mutual funds. DhanCreators help you choose best mutual funds investment options. As one of the best Mutual Fund Advisors in Delhi, we first understand your financial plan and dreams and then based on your income and expectations offer you the best Mutual Fund investment solutions. Trust DhanCreators as your Mutual Fund agents and advisor, if you are looking for a perfect investment plan in mutual funds. We cater to the clients in Delhi NCR including New Delhi, Noida, Gurgaon and Ghaziabad.

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All time high inflows suggest that the third wave has not dampened investors’ enthusiasm for equity mutual funds
Tue, 11 Jan 2022 11:58:58 +0530


All time high inflows suggest that the third wave has not dampened investors’ enthusiasm for equity mutual funds
Tue, 11 Jan 2022 11:58:58 +0530


On the BSE, the Auto Index rose 4.4 percent, while Capital Goods, Information Technology, Healthcare and Realty indices gained 1 percent each.
Thu, 23 Jun 2022 16:33:56 +0530


On the BSE, all sectoral indices ended in positive territory led by oil gas (up 6 percent) and power, realty, IT and metal indices up 3 percent each
Tue, 21 Jun 2022 16:56:00 +0530


The broader market underperforms the benchmarks. The BSE midcap index declined 1.4 percent and the smallcap index closed 3 percent down
Mon, 20 Jun 2022 16:46:29 +0530


The undertone of the market continues to remain bearish with weak global cues dampening investors#39; sentiment as the FII selling is showing no signs of easing, pushing investors to exercise caution.
Fri, 17 Jun 2022 16:39:45 +0530


The undertone of the market continues to remain bearish with weak global cues dampening investors#39; sentiment as the FII selling is showing no signs of easing, pushing investors to exercise caution.
Fri, 17 Jun 2022 16:39:45 +0530


Broader indices outperformed the benchmarks, with the BSE midcap and smallcap rising 0.5 percent each
Wed, 15 Jun 2022 16:36:46 +0530


The BSE midcap and smallcap indices end marginally lower.
Tue, 14 Jun 2022 16:46:54 +0530


Indian rupee ended 19 paise lower at 78.03 to a dollar against the June 10 close of 77.84 after falling to a record low of 78.28 during the day
Mon, 13 Jun 2022 16:54:40 +0530


The US markets lost more than 2 percent yesterday as investors remained concerned about the global economy while awaiting key inflation data.
Fri, 10 Jun 2022 16:56:43 +0530


The market continued to be dominated by a volatile global market with investors weighing the impact of the upcoming global central bank meetings.
Thu, 09 Jun 2022 17:52:33 +0530


The focus now shifts to the global market, which is anticipating a hawkish Fed policy next week
Wed, 08 Jun 2022 17:43:58 +0530


Experts say the market has factored in a 50bps repo rate and CRR hike and any further measures to clamp down on liquidity will affect the market
Tue, 07 Jun 2022 17:04:46 +0530


Experts expect the volatility to continue in both global and domestic markets just before the RBI MPC meet outcome, ECB meeting and the US inflation data
Mon, 06 Jun 2022 17:09:28 +0530


The policy stance to be adopted by the central banks and US job data will determine the market trends for the coming week
Fri, 03 Jun 2022 17:03:04 +0530


The broader indices, too, ended higher. The BSE midcap index closed 0.03 percent higher, while the smallcap index gained 0.64 percent
Thu, 02 Jun 2022 17:01:29 +0530