Mutual Funds
It is a mechanism that is made up of a pool of money collected by number of investors for the purpose of investing in instruments like stocks, bonds, money market instruments and other asset classes as specified in its prospectus. Money is managed by the fund managers, who invest the fund’s capital and attempt to produce capital gains and income for the fund’s investors.
Mutual funds are professionally managed, diversified portfolios of equities, bonds and other securities, which would be quite difficult or almost impossible to create with a small amount of capital for a small investor. Each shareholder participates proportionally in the gain or loss of the fund.
With various options in the basket of mutual funds it is one of the best tools to accumulate money for your long term goals along with the liquidity and the tax efficiency as per the different schemes and options.
In some of the schemes you also get the tax benefit under section 80C of the Income Tax Act, 1961 with a lock in period of three years.
Classification of funds can be done on various parameters like:-
Open ended and close ended, debt, equity or hybrid. Within the class as, money market, short term bond, long term bond, gilt, dynamic, large cap, mid cap, small cap, flexi cap, equity oriented, debt oriented and many more.
We are always happy to assist you choose the best available option for you.

