
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.

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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.......