Guide to Mutual Funds
Module Units
- 1. Introduction: Mutual Funds
- 2. How Does a Mutual Fund Investment Work?
- 3. Different Types of Mutual Fund Schemes
- 4. How Can a Customer Invest in Mutual Fund
- 5. Fundamental Attributes of Mutual Fund Scheme
- 6. Types of Mutual Funds
- 7. Concept of AUM
- 8. Equity Mutual Funds
- 9. Debt Mutual Funds
- 10. Hybrid Mutual Fund
- 11. Solution-Oriented Schemes
- 12. New Fund Offer (NFO)
- 13. Offer Document
- 14. Types of Risk in Mutual Fund
- 15. Net Asset Value
- 16. How do mutual funds calculate the reserve for declaring dividends?
- 17. Expenses Charged on Mutual Funds
- 18. What is Dividend Distribution Tax & when it is Levied?
- 19. Debt Mutual Funds
- 20. What is Indexation?
- 21. Risk Return and Performance of Funds
- 22. Types of Risks in Popular Mutual Fund Schemes
- 23. Which Factors Affect the Returns in a Mutual Fund Schemes
- 24. Methods Used To Evaluate The Performance Of A Mutual Fund
- 25. Mutual Fund Structure and Constituents
- 26. Key Personnel of an Asset Management Company
- 27. What are the objectives of AMFI?
- 28. Must know Concepts and Terms
- 29. Facilities and services that the investors GetS
- 30. Mutual Fund Advisors
- 31. Types of Commission for Mutual Fund Advisors
- 32. Mutual Fund Frequently Asked Questions
- 33. What are the KYC requirements?
Facilities and services that the investors GetS
One of the most popular instruments today for investors that can give maximum benefits with minimum efforts from the investor's side is Mutual Funds.
Let’s understand some major mutual fund services and facilities that the investors get-
Investing Regularly with an SIP(Systematic Investment Plan)
One of the smartest and most popular ways to enjoy the power of compounding is through an SIP in mutual funds. You can start off with a small amount(500,1000) on a disciplined regular basis and still achieve your financial goals. The stress of timing the market also vanishes.
Easy Switch by Systematic Transfer Plan (STP)
A Systematic Transfer Plan (STP) helps spread out your investments over time, managing risk and return balance. It involves transferring funds from one fund to another. Investors often use it when they've put a lump sum in a liquid or debt fund and want to move it systematically to a balanced or equity fund.
Fund managers also use STP internally to adjust the portfolio between debt and equities during market ups and downs.
Risk Diversification
With options of having different instruments like equity, debt, bonds and more mixed-up options(Large cap, small cap), investors can have options to invest as per their financial goals, preferences and needs. Investors get the benefit of having a diversified portfolio that is managed by a market expert manager.
Transparency
Mutual fund schemes share their Net Asset Values (NAVs) daily, letting investors know the value of their units. Monthly, they release Fund Factsheets, revealing the portfolio holdings and weights of securities for each scheme.
This gives investors insight into where fund managers have invested each month.
You also get the exact details of who your fund manager is and what kind of experience he possesses.
Tax Benefits
Under Section 80C of the Income Tax Act, you can get tax benefits if you invest in ELSS (Equity Linked Saving Schemes).
This means you can save up to Rs.1.5 lakh on taxes, which is around Rs.46,800 per year. Just keep in mind that ELSS comes with a minimum lock-in period of three years.
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