Some basics on Mutual Funds?



Hi,
I want to invest in Mutual Funds(in India) for some short period.
Before this I want to have some basic knowledge on MF.
1. What type of Mutual Investments are there?
2. What should be the minimum period one should keep money invested in Mutual Funds?
3. How to purchase Mutual Funds in India?
4. Any Website links to understand Mutual Funds better.

Please help me out to understand above mentioned points.

Regards,
Nitin Rastogi

Some basics on Mutual Funds?
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8 Replies to “Some basics on Mutual Funds?”


  1. 1.Many types.Close end/open end, sector/diversified, liquid/equity,growth/income etc etc..
    2.Should be long term. At least 3 to 5 yrs horizon. longer is better.
    3.You can purchase direct from fund house or through broker. Even you can purchase online either from fund house or through distributors bank/institutes.
    4.Good point. To me valueresearchonline.com is the best mutual fund site.


  2. Expert fund Manager manages ur money, but they will charge for their expertise, inspite they are still subjected to Market conditions.
    So take long term objectives in reputed funds. Use SIP


  3. Investment in mutual funds is always safe, its always better to invest in SIP. You can start any SIP plan related to banking sector like HDFC Top 200 plan, ICICI dynamic plan.


  4. A Mutual Fund is a common pool of money into which investors with common investment objective place their contributions that are to be invested in accordance with the stated investment objective of the scheme.

    Mutual Funds are broadly classified on the basis of investment objective and on the basis of structure of the fund.

    Based on Investment Objectives, Mutual Funds can be classified as:
    – Equity Oriented Schemes (Growth Schemes) – These schemes seek to invest a majority of their funds in equities and a small portion in money market instruments.
    – Debt Based Schemes (Income Schemes) – These schemes invest in debt securities such as corporate bonds, debentures and government securities.
    – Hybrid Schemes (Balanced Schemes) – These schemes invest in both equities as well as debt.

    Based on Structure, Mutual Funds can be classified as:
    – Open ended Schemes – They give the investor the option to redeem at any time. The units offered by these schemes are available for sale and repurchase on any business day at NAV based prices.
    – Closed ended Schemes – The investor has to wait till maturity of the scheme. The unit capital of a close-ended product is fixed as it makes a one-time sale of fixed number of units.
    – Interval Schemes – These schemes combine the features of open-ended and closed-ended schemes. They may be traded on the stock exchange or may be open for sale or redemption during pre-determined intervals at NAV based prices.

    To gain good returns, it is advisable to keep your money invested in Mutual Funds for minimum 3-5 years.
    To purchase Mutual Funds in India, you can get in touch with a fund house or visit the website of the Mutual Fund of your choice to see if you can buy them online. Alternatively, you can also consult a broking firm that offers comprehensive mutual funds investment services. It will not only help you select the right fund to invest in, but also monitor and evaluate the performance of your Mutual Funds Portfolio.


  5. Visit http://www.valueresearchonline.com to understand mutual funds.

    Equity related funds are for long term . Minimum 3- 5 years.

    For short term Debt funds , liquid funds are there.

    You can purchase online or buy through an agent.

    You can also walk into the office of that particular fund / or the registrar like CAMS / KARVY/ etc.

    You can write to me anytime.


  6. Read the links below to get a good grip on basics of mutual funds. Most mutual funds are better for investment in the medium term to long term. There are equity funds, debt funds, balanced funds and other types. Hopefully the articles in link will help with all details

    Good diversified mutual funds will give better returns than index fund. But if you are a novice and cannot do independent research on mutual funds, then choose an index fund. But if you can research well and have time on your hands – invest in diversified mid-cap or large-cap funds (or a mix) from good fund houses. You will emerge a winner in the long run.

    Use the SIP (Systematic Investment Plan) option and never invest all your money at once in a mutual fund. Invest regularly (monthly) with a SIP






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