AMFI Registered Mutual Fund Distributor
Mutual Funds
A mutual fund is defined as a trust that collects money from several investors, usually having a common objective, and invests the same in equities, bonds, bullion, money market instruments, or other assets.
The gains generated from the collective investment are distributed proportionately amongst the investors after deducting applicable expenses.
Mutual funds offer multiple product choices for investors across the financial spectrum.
It offers an excellent option for retail investors to participate and benefit from the uptrend in the capital market. Investing in mutual funds can help them to achieve various money goals such as retirement plan, children’s education or marriage, home buying, etc.
Types Of Mutual Funds
Open Ended Fund
The one where one can invest or withdraw money daily. This scheme is perpetual and doesn't have a maturity date.
Close Ended Fund
A closed-end fund is available for investment only during the initial subscription period and has a specific time and fixed maturity date. They are listed on the stock exchange after the new fund offer closes for buying or selling the units on the exchange by the investors only.
Actively Managed Fund
An actively managed fund scheme in which the fund manager actively manages the portfolio and continuously decides on buying, selling, or holding the stocks to generate maximum returns against the scheme benchmark.
Passive Fund
This follows a market index, where the fund managers remain inactive for most of the time as they simply replicate or track the benchmark index in exactly the same proportion. His task is to generate the same returns as the index and not to outperform the scheme's benchmark. Index fund or all exchange-traded funds are examples of passively managed funds.