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A mutual fund is a professional managed funded investment plan run by an Asset Management Company ( AMC ) Whcih collects funds from public as stocks, bonds and securities etc., and invests in shares.
Investor who is interested in mutual funds investment buys mutual fund ‘units’, which is basically derived from the underlying shares in the particular fund. These unit would be allotted to the particular investor and can be redeemed as and when needed.
The selling rate would be according to the prevailing rates which is called as net asset value (NAV). The NAV of the mutual fund would fluctuating every day and the earning would be considered accordingly.
In India all the mutual funds are registered with Securities and Exchange Board of India
The main advantage of investing through a mutual fund is that it gives all investors to access professionally-managed, diversified portfolios of equities, bonds and other securities, which would be quite difficult to create with a small amount of capital.
Mutual Funds Monthly SIP
There are various types of Mutual funds in the market. As an investor, you can go for Equity or ELSS Mutual Fund.
ELSS is a type of mutual fund investment that qualifies for tax deductions. Even though it is at par with other diversified equity funds, lock-in period of 3 years, gives the fund manager the flexibility to make strategic investments with capital appreciation and growth in mind.
Considering the growth potential, most of the fund houses have renamed their ELSS funds as “Long Term” funds. These schemes are suitable for investors with a long term outlook, irrespective of whether they are tax payers are not.
You can invest diligently through SIPs, which help you stagger your investments. Likewise, at the time of redemption, you need not redeem all units at one stroke. You can cash-in as much as you need and let the rest stay invested.
Invest in MF ELSS through our NSE terminal, like you buy shares. Units will automatically get credited in your Demat account.
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