Mutual funds are investment vehicles that pool money from investors. The money is then invested across a wide variety of assets like stocks, bonds, gold, etc. depending on the investment objective to earn returns.
How do mutual funds work?
- A mutual fund is set up by the Sponsor or Promoter. An Asset Management Company (AMC) is appointed to oversee and manage the fund’s portfolios.
- An investor puts in money in a mutual fund scheme in exchange for units. Some fund units can be bought only during a new fund offering, while some can be bought any time.
- This money collected from a pool of investors is then used to purchase stocks, bonds, money-market instruments, government securities, ETFs, gold and so on. The scheme’s prospectus will give a detailed idea about the kind of assets that will be purchased.
- The AMC generally charges a small fee for managing the assets
- The portfolio is managed by the AMC. The regularly buy and sell the assets. Any profits made would be distributed amongst the investors as dividends.
What are the benefits?
Over the years, mutual funds have emerged as a highly popular investment option among investors in India and across the globe. Here’s why mutual funds are beneficial:
- Diversification: Mutual funds give you access to a diversified portfolio. If you had to invest directly, you would have had to shell out a lot of money for diversification. In contrast, using a minor amount, you can have access to a portfolio with investments across mutliple stocks or bonds.
- Professional management: As an investor, you conduct your own research before buying a stock or bond. However, there are so many options out there that it can become confusing. A mutual fund, however, allows you to save time and resources in this research. Experts in the asset management company will be investing on your behalf through a mutual fund.
- Timing: In the stock market, timing is one of the most important factors. A mutual fund allows you to sit back and relax, and not worry about buying or selling at the right time.
- Transaction cost: When you buy a stock or bond, you have to pay a small amount as fees every time. Imagine, if you were to buy a hundred assets to diversify your portfolio, you had to pay a charge for each of them. This is not so for a mutual fund. All you have to do is pay a small fee once.
Shriram Insight brings you the online convenience while investing in Mutual funds also - Hassle free and Paperless Investing.
You can now invest on-line in 41 mutual Funds through Shriram Insight.
- Aditya Birla Sunlife Mutual Fund
- Axis Mutual Fund
- Baroda BNP Paribas Mutual Fund
- Bank of India Mutual Fund
- Canara Robeco Mutual Fund
- DSP Mutual Fund
- Edelweiss Mutual Fund
- Franklin Templeton Mutual Fund
- HDFC Mutual Fund
- HSBC Mutual Fund
- ICICI Prudential Mutual Fund
- IDBI Mutual Fund
- IDFC Mutual Fund
- India Bulls Mutual Fund
- Invesco Mutual Fund
- IIFL Mutual Fund
- ITI Mutual Fund
- JM Financial Mutual Fund
- Kotak Mahindra Mutual Fund
- L & T Mutual Fund
- LIC Mutual Fund
- Mahindra Manulife Mutual Fund
- Mirae Mutual Fund
- Motilal Oswal Mutual Fund
- Navi Mutual Fund
- Nippon India Mutual Fund
- NJ Mutual Fund
- PPFAS Mutual Fund
- PGIM India Mutual Fund
- Quant Mutual Fund
- Quantum Mutual Fund
- Shriram Mutual Fund
- Sahara Mutual Fund
- Samco Mutual Fund
- SBI Mutual Fund
- Sundaram Mutual Fund
- TATA Mutual Fund
- Taurus Mutual Fund
- Union Mutual Fund
- UTI Mutual Fund
- WhiteOak Capial Mutual Fund
You can invest in mutual funds without the hassles of filling application forms or any other paperwork
You need no signatures or proof of identity for investing.
Once you place a request for investing in a particular fund, there are no manual processes involved.
You also get control over your investments with online order confirmations and order status tracking. Get to know the performance of your investments through online updation of MF portfolio with current NAV.
Shriram Insight offers you various options while investing in Mutual Funds:
Purchase: You may invest/purchase mutual fund units without the hassles of filling application forms.
Redemption:In addition to giving hassle-free paperless redemption, Shriram Insight offers faster liquidity.
The Redemption money will be credited to your bank account automatically after payout.
Systematic Investment plans (SIP): SIP allows you to invest a certain sum of money over a period of time periodically.