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VIDEO TUTORIALS

Why investing is a great idea?

How does a mutual fund work?

Why should you invest in Mutual Funds?

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MUTUAL FUNDS FAQ

Introduction

In India, mutual funds are a popular choice because of their structural simplicity and the number of benefits that they offer vis-a-vis direct investment in stocks. A mutual fund allows a bunch of investors to pool their money and invest in a scheme that already has a well-defined investment objective. Mutual funds are under the strict vigil of the capital market regulator Securities and Exchange Board of India (SEBI). All of the mutual fund regulations in India have been chalked out and even modified recently keeping the best interests of investors in mind.In India, mutual funds are a popular choice because of their structural simplicity and the number of benefits that they offer vis-a-vis direct investment in stocks. A mutual fund allows a bunch of investors to pool their money and invest in a scheme that already has a well-defined investment objective. Mutual funds are under the strict vigil of the capital market regulator Securities and Exchange Board of India (SEBI). All of the mutual fund regulations in India have been chalked out and even modified recently keeping the best interests of investors in mind.

What is a Mutual Fund?

Mutual fund is a mechanism for pooling the resources by issuing units to the investors and investing funds in securities in accordance with objectives as disclosed in offer document.

Investments in securities are spread across a wide cross-section of industries and sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in the same direction in the same proportion, at the same time. Mutual fund issues units to the investors in accordance with quantum of money invested by them. Investors of mutual funds are known as unitholders.

The profits or losses are shared by the investors in proportion to their investments. The mutual funds normally come out with a number of schemes with different investment objectives which are launched from time to time. A mutual fund is required to be registered with Securities and Exchange Board of India (SEBI) which regulates securities markets before it can collect funds from the public.

What is the history of Mutual Funds in India and role of SEBI in mutual funds industry?
How is a mutual fund set up?
What is Net Asset Value (NAV) of a scheme?
What are the different types of mutual fund schemes?
What are sector specific funds/schemes?
Can a mutual fund change the asset allocation while deploying funds of investors?
How to invest in a scheme of a mutual fund?
Can non-resident Indians (NRIs) invest in mutual funds?
How much should one invest in debt or equity oriented schemes?
How to fill up the application form of a mutual fund scheme?
What should an investor look into an offer document?
Can a mutual fund change the nature of the scheme from the one specified in the offer document?
How will an investor come to know about the changes, if any, which may occur in the mutual fund?
How to know the performance of a mutual fund scheme?
How to know where the mutual fund scheme has invested money mobilised from the investors?
Is there any difference between investing in a mutual fund and in an initial public offering (IPO) of a company?
If schemes in the same category of different mutual funds are available, should one choose a scheme with lower NAV?
How to choose a scheme for investment from a number of schemes available?
Are the companies having names like mutual benefit the same as mutual funds schemes?
Where can an investor look out for information on mutual funds?
If mutual fund scheme is wound up, what happens to money invested?
How can the investors redress their complaints?