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:: MUTUAL FUND |
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Mutual Funds are an attractive means of saving taxes and diversifying your investment portfolio. So if you are looking to invest in mutual funds,Venimadhav Commodities Pvt. Ltd. offers you a host of mutual fund choices under one roof; backed by in-dept information and research to help you invest smartly.
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:: HOW TO INVEST IN MUTUAL FUNDS? |
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Venimadhav Commodities Pvt. Ltd. has made investing in Mutual funds so simple.
All you have to do is simply pick the phone to contact us or log on to our website and place your order.
To start investing in NFOs, all you need to do is open an online tradig account. Choose from our wide range of accounts to suit your investment needs.
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:: Related FAQ |
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:: What are mutual funds? |
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A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money collected in the process is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realised are shared by its unit holders in proportion to the number of units owned by them. Mutual Funds are managed by Asset Management Companies, commonly referred to as AMC's that employ experts called Fund mangers who put in their expertise to invest the funds in a prudent manner. The biggest advantage of a Mutual Fund is the fact that beginners in the markets get to put in their money(however big/small the amount may be) in the stock markets.Based on the investment options that the fund manager may offer and the risk-return appetite of an investor, he/she may choose a mutual fund that caters to their needs. Mutual Funds today are a preferred investment avenue. The reason why they are popular is that they let you enjoy the benefits of considerable tax savings as well as facilitating a well-diversified and professionally managed portfolio.
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:: How many categories of mutual funds are there in the market? |
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There are three broad categories of funds in the Indian market - money market, debt and equity. A money market fund invests in short-term government debt paper and is good for parking money for the short term since the principal is safe, returns better than a bank deposit and liquidity high. Debt funds invest mainly in debt instruments like government securities, corporate and institutional debt paper. They are also called income funds since people buy them for their income needs. Equity funds invest in the stock market and suit long term investors who want capital appreciation. Commodity, property and gold funds are yet to come into India.
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:: Why should I invest in a mutual fund? |
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Investors with small portfolios may not have the necessary expertise nor get the required diversification across debt and equity products. For example, equity-seeking investors may find their money insufficient to buy enough companies to spread their risk. Or they may find funds insufficient to spread between cash, debt and equity products. Mutual funds offer a way out, for as little as Rs 1,000, an investor can approach most schemes and get well-diversified portfolios, across product classes and instruments. The money is invested by market experts. As markets mature, funds begin to customise products according to need. It is possible to match a unique need to a specific scheme from a fund house.
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:: Is investing in Mutual Funds safe? |
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The mutual fund industry is well regulated in India. The market regulator, the Securities and Exchange Board of India (SEBI) has ensured that a repeat of the vanishing companies does not happen here. Therefore, mutual funds in India are in the form of a Trust. This means that the money belongs to the investors and is only held in the name of the Trust. The investment arm, the AMC, acts as a fee-for investment manager and does not own the money. This does not mean that the investments are risk-free. Investors need to take the risk of volatility or bad management and money can grow or lose value depending on the market and investment decisions. However, sensible mutual fund investing is a good way to include equity and debt in individual portfolios to see realistic growth.
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