• What is Mutual Fund - Overview
• Types of Mutual Fund – Structure Wise and Objective Wise
• Regular Terms used in Mutual Funds
• Conviction on Equity Mutual Funds for Long Term Wealth Creation
Concept of a Mutual Fund
A common pool of money into which
investors place their contribution
This money is to be invested
according to the pre-stated objectives of the fund
Ownership of the fund is joint or mutual amongst all investors -
equivalent to the contribution made as a proportion of the overall fund
Ownership through holding of units at NAV
Advantages of Mutual Fund
Portfolio Diversification
Reduction of Risk
Professional Management
Reduction of Transaction Costs
Access to Information
Types of Funds: As per Structure
Open-ended
Daily sale/purchase
No fixed maturity
Fund is “secondary market”
Sale during NFO
Closed-ended
Fixed Maturity
SE is secondary market
Periodic sale / purchase
No fixed maturity
No comments:
Post a Comment