Mutual Funds





Mutual funds are a type of certified managed combined investment schemes that gather money from many investors to buy securities. There is no such accurate definition of mutual funds, however the term is most commonly used for collective investment schemes that are regulated and available to the general public and open-ended or close ended in nature.

Mutual funds are identified by their principal investments. They are the 4th largest category of funds that are also known as money market funds, bond or fixed income funds, equity funds and hybrid funds. Funds are also categorized as index based or actively managed.


Why Mutual funds

  • Increase in diversification
  • Liquidity on a daily basis
  • Professional investment management
  • Convenience
  • Governance – SEBI & AMFI’s oversight
  • Choice of over 41 asset management companies – you choose the best.


As per Warren Buffett, there is absolutely no secret to be a successful investor. You have access to all the details about mutual funds, stocks stating their past performance. Browse finance blogs, look up your desired investment product on several web-sites and gather all the necessary information. All you need is common sense and great discipline and last but not the least an expert financial advisor to take the right decision for your money. The fact is that the earlier you start investing, the more funds you will have to lead a desired lifestyle once you retire from work

Diversification and asset allocation is the best way to balance your investments by taking calculated risks.

Bank fixed deposit is a popular investment option in India. There is no doubt that it’s considered to be the most safest investment and offers predictive return, but that does not mean that one must put all the money in fixed deposits. The interest earned is taxable and the post tax return might not even beat inflation.

An individual does not need millions to be a successful investor. As the famous saying goes – “Little drops make an ocean”, one can begin with a smaller amount and eventually scale higher.

Let’s say if you start investing Rs. 10,000 at monthly for next 20 years at a rate of 14% in a well diversified equity fund, you will accumulate approximately Rs. 13,16,3,463. That’s the Power of compounding!

If one stick’s to discipline of investing regularly and takes informed decisions of his finances in line with his risk and time horizon there are meagre or virtually no chances of losing money over a longer time period.

Ξ Mutual Fund Tax Reckoner 2016-17

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