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Mutual Funds

A mutual fund is a next generation investment tools  made up of a pool of amount collected from many retail and institutional investors for the purpose of investing in various securities i.e. stocks, bonds, money market etc. Mutual Funds are operated by professional money managers, having huge experience and professional skill.

 

Mutual funds give small or individual investors access to professionally managed portfolios. A fund's NAV is derived by dividing the total value of the securities in the portfolio by the total amount of shares outstanding.

 

 

Mutual funds pool money from the investing public and use that money to buy other securities, usually stocks and bonds.

Money Market Funds

The money market consists of safe (risk-free) short-term debt instruments, mostly government Treasury bills. This is a safe place to park your money. You won't get substantial returns, but you won't have to worry about losing your principal.

Income Funds

Income funds invest primarily in government and high-quality corporate debt, holding these bonds until maturity in order to provide interest streams. The Investor for these funds consists of conservative investors and retirees. Because they produce regular income, tax conscious investors may want to avoid these funds.

Balanced Funds

The objective of these funds is to provide a balanced mixture of safety, income and capital appreciation. The balanced fund will have a weighting of more than 65% equity and less than 35% fixed income.

Equity Funds

The investment objective of this class of funds is long-term capital growth. There are, however, many different types of equity funds because there are many different types of equities.  A mutual fund may blend its strategy between investment style and company size. For example, a large-cap value fund would look to large-cap companies that are in strong financial shape but have recently seen their share prices fall, and would be placed in the upper left quadrant of the style box (large and value). The opposite of this would be a fund that invests in startup technology companies with excellent growth prospects: small-cap growth. Such a mutual fund would reside in the bottom right quadrant (small and growth).

Global/International Funds

 

An international fund (or foreign fund) invests only in assets located outside your home country. Global funds, meanwhile, can invest anywhere around the world, including within your home country.