Latest News Mutual Funds Online in Indiaby Andrew Abraham Business Analyst
What is a mutual fund?
A mutual fund is a professionally managed fund that consists of shareholders’ money and invests in various different holdings. The mutual funds have managers who buy mutual funds online and otherwise; and it is their job to look for the best paying investments and attempt to earn capital gains and income for the fund’s investors.The investors who pool in their money in mutual funds are known as unit-holders and they each hold a pro-rata share of the investments, known as the investment portfolio. This way they can partakeany profits on the sale of securities and also have to bear the loss on any sales as well.
What are the benefits of investing in a mutual fund?
If you keep yourself updated with the latest mutual fund news you will see, that when investing in a mutual fund, there are several advantages; one of the most important being diversification of the portfolio. Not all investors are big enough to take advantage of diversification; however, since mutual funds invest using money pooled in from several investors, it is possible for them to enjoy the benefits of investing in a diverse portfolio.Other than this, there are several other benefits such as professional money management, transparency, low-cost, convenience and flexibility. In addition you can also avail personal guidance and service from the fund managers that will help you in case you are looking to buy mutual funds online on your own.
Types of mutual funds and regulation of mutual funds in India
You must have heard of several types of mutual funds if you have been following the latest mutual fund news. Mutual funds are basically of two types - the open-ended and the closed-ended mutual funds.The open-ended funds do not have an expiry date and the investors can buy or sell the units at any time. The closed-ended funds come with a specified maturity date and the investment by investors is allowed only in the initial launch period. The Indian mutual funds industry is regulated by the Securities and Exchange Board of India (SEBI). The self-governing association of mutual funds the Association of Mutual Funds of India (AMFI) lays down codes of practice for distributors and regulates the distribution, sales and communication practices of its members.
Created on Dec 31st 1969 19:00. Viewed 0 times.