Mutual Fund

• Aggressive portfolio

Have primarily equities or similar higher risk investments, weighted toward aggressive growth, small company and international investments.

An aggressive portfolio may be suitable for you if you:

• Have high return expectations for your investments
• Can tolerate higher degrees of fluctuation (sharp, short-term volatility) in the value of your investments
• Are a younger or a more experienced investor and a risk taker
• Desire returns that exceed inflation
• Have 15 years or more before you will need to utilize the money from your investments

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Types of Asset Allocation ModelsRead More »

The benefits of spreading one’s exposure (diversification across asset classes, sectors, countries etc) in any investment activity are well chronicled. What is less highlighted is the benefit arising out of spreading the timing of one’s actions. …

Systematic Investment PlanRead More »

• Clarity of Objectives – Investors should be clear in their objectives – what they want to achieve from their investment is it income, liquidity, capital gain, tax saving or a combination of these.

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Steps for choosing the right mutual fund schemeRead More »

We all know, Investment in Mutual Funds does not eliminate risk, rather it spreads risk among various securities. The success in the form of better return from mutual funds will depend upon understanding and the tolerance by the investors of the following categories of risk: …

Risks involved and Strategy to mitigate the sameRead More »

Mutual funds can also be broadly classified into three distinguishable types as per class of investments Objectives:

• Growth Funds

The objective of a Growth Fund Scheme is to provide capital appreciation over the medium to long term. These schemes normally invest a major portion of their funds in equities and are willing to bear short-term decline in value for possible future appreciation in the net asset value of the scheme. These schemes are suitable for investors seeking growth over the long term. …

Mutual Fund Investment :As per Investment ObjectivesRead More »

• Investors – Who have savings for investment and are looking for proper investment channel
• Sponsor – Is a person who sets up a mutual fund and sets up a trust after executing trust deed. Sponsor contributes to the initial capital of the trust and appoints the board of trustees. It also appoints asset management company (AMC) and contributes minimum of  40% of net worth of AMC

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Parties InvolvedRead More »

• Pooled Vehicle

A mutual fund is a pooled vehicle to pool money from investors, with a promise that the money would be invested in a particular manner, by professional managers.

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Concept of Mutual FundRead More »