What is a Mutual Fund?
A mutual fund by definition is a pool of money collected from investors who want to save money and get good returns. Investing in a mutual fund is a lot easier than trading in individual bonds & stocks by themselves.
Professional Management of investments: all mutual fund investments are selected & monitored by professionally qualified personnel, who use the investments to create a carefully planned & chosen portfolio. This portfolio can consist of bonds, stocks, and other instruments or a combination of all or some of these.
Ownership of fund: The investor owns shares of the
mutual fund investment and does not have ownership of individual securities. These funds allow an investor to invest money in small or larger amounts, according to their own limits, and reap benefits from being involved in a large pool of investment made by other people. All gains and losses are shared equally by all investors in the fund, in proportion to the amount invested by them.
Why should you invest in mutual fund?
- Professional management:
Mutual Funds are backed by highly professional research teams, dedicated to provide investors with the best services to handle financial decisions based on the prospects & performances available and aim to give the best returns possible for your investments.
- Convenience: Mutual funds prove to be a great investment option for investors who don’t have the time nor the expertise to make investments in the capital market. Mutual funds make an investor free of their investment worries to carry on with other bigger tasks in their life.
- Diversification: Going by the old saying “Don’t put all your eggs in one basket”, mutual fund gives the investor an opportunity to dodge risks by distributing their investments over diverse range of assets. They are great for people with limited capital.
- Transparency & Safety: Fund houses give regular information about the actual current value of the investment, with their performance strategy. This gives an investor a clear picture on how their investments are doing. Also, as they are governed by SEBI, although, any investment has a form of risk involvement, skillful management, careful selection & diversification help in cutting down risks & increasing returns over a period of time.
The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. Certain factual and statistical information (historical as well as projected) pertaining to Industry and markets have been obtained from independent third-party sources, which are deemed to be reliable. It may be noted that since NAM INDIA (Formerly known as Reliance Nippon Life Asset Management Limited) has not independently verified the accuracy or authenticity of such information or data, or for that matter the reasonableness of the assumptions upon which such data and information has been processed or arrived at; NAM INDIA (Formerly known as Reliance Nippon Life Asset Management Limited) does not in any manner assures the accuracy or authenticity of such data and information. Some of the statements & assertions contained in these materials may reflect NAM INDIA’s (Formerly known as Reliance Nippon Life Asset Management Limited)views or opinions, which in turn may have been formed on the basis of such data or information.
Before making any investments, the readers are advised to seek independent professional advice, verify the contents in order to arrive at an informed investment decision. None of the Sponsor, the Investment Manager, the Trustee, their respective directors, employees, affiliates or representatives shall be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.