Latest News Mutual Funds Online in India
by Andrew Abraham Business AnalystWhat 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.
About Author:
Author is a contributor writer and engaged with latest mutual fund news. He also would like to share his experienced balanced views for buy mutual funds online.
Sponsor Ads
Created on Dec 31st 1969 18:00. Viewed 0 times.