Understand_MF



Mutual Fund – An Understanding

To many people, Mutual Funds can seem complicated or intimidating. We are going to try and simplify it for you at its very basic level. Essentially, the money pooled in by a large number of people (or investors) is what makes up a Mutual Fund. This fund is managed by a professional fund manager.

It is a trust that collects money from a number of investors who share a common investment objective. Then, it invests the money in equities, bonds, money market instruments and/or other securities. Each investor owns units, which represent a portion of the holdings of the fund. The income/gains generated from this collective investment is distributed proportionately amongst the investors after deducting certain expenses, by calculating a scheme’s “Net Asset Value” or NAV. Simply put, a Mutual Fund is one of the most viable investment options for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.


                                 Click Here to Understand through Audio Visual

Types of Mutual Fund: Various types of Mutual Funds exist to cater to different needs of different people. Largely, they are of three types.

Equity or Growth Funds

  • These invest predominantly in equities i.e. shares of companies
  • The primary objective is wealth creation or capital appreciation.
  • They have the potential to generate higher returns and are best for long-term investments.
  • Examples would be
    • “Large Cap” funds invest predominantly in companies that run large established business
    • “Mid Cap” funds invest in mid-sized companies.
    • “Small Cap” funds that invest in small sized companies
    • “Multi Cap” funds that invest in a mix of large, mid and small sized companies.
    • “Sector” funds invest in companies that are related to one type of business. For e.g. Technology funds that invest only in technology companies
    • “Thematic” funds that invest in a common theme. For e.g. Infrastructure funds that invest in companies that will benefit from the growth in the infrastructure segment
    • Tax-Saving Funds


Income or Bond or Fixed Income Funds

  • These invest in Fixed Income Securities, like Government Securities or Bonds, Commercial Papers and Debentures, Bank Certificates of Deposits and Money Market instruments like Treasury Bills, Commercial Paper, etc.
  • These are relatively safer investments and are suitable for Income Generation.
  • Examples would be Liquid, Short Term, Floating Rate, Corporate Debt, Dynamic Bond, Gilt Funds, etc.

Hybrid Funds

  • These invest in both Equities and Fixed Income, thus offering the best of both, Growth Potential as well as Income Generation.
  • Examples would be Aggressive Balanced Funds, Conservative Balanced Funds, Pension Plans, Child Plans and Monthly Income Plans, etc.

Existing Investor Please Click Here to Generate Your Consolidated Statement.





TDS is associated with the following Assets Management Companies (AMC):

360 One Mutual fund
Aditya Birla Sun Life Mutual fund
Axis Mutual Fund
Bajaj Finserv Mutual fund
Bandhan Mutual Fund
Baroda BNP Paribas Mutual Fund
BOI Mutual fund
Canara Robeco Mutual Fund
DSP Mutual Fund
Edelweiss Mutual Fund
Franklin Templeton Mutual Fund
Groww Mutual Fund
HDFC Mutual Fund
Helios Mutual Fund
HSBC Mutual Fund
ICICI Prudential Mutual Fund
INDIABULLS
INVESCO Mutual Fund
ITI Mutual Fund
J M Financial Mutual Fund
Kotak Mutual Fund
LIC Mutual Fund
Mahindra Manulife Mutual Fund
Mirae Asset Mutual Fund
Motilal Oswal Mutual Fund
N J Assets Management
NAVI Mutual Fund
Nippon India Mutual Fund
OLD BRIDGE Mutual Fund
PGIM India Mutual Fund
PPFAS Mutual Fund
QUANT Mutual Fund
Quantum Mutual Fund
SAMCO Mutual Fund
SBI Mutual Fund
Shriram Mutual Fund
Sundaram Mutual Fund
TATA Mutual Fund
Taurus Mutual Fund
TRUST Mutual Fund
Union Mutual Fund
UTI Mutual fund
Whiteoak Mutual Fund
Zerodha Mutual Fund

Remember! Mutual Fund Sahi Hai.......