Chapter 2
Mutual Fund Schemes in India
In India, mutual funds are becoming very popular now days. The uncertainty of the stock prices is increasing so the investor wants to invest in such investment schemes where some management will take care of his investment by providing the nominal charges. The mutual funds provide lots of benefits as compare to the charges paid by the investors. The SEBI as a regulator takes care of the mutual fund such that the mutual fund works to protect the interest of the investor so in that sense investor are much secured about the transactions and investment. The investor need to agile about the investment capital appreciation by tracking to the different mutual fund but need not be worry about the investment frauds. Once investor invests in the mutual fund, further on its mutual fund’s responsibility to take care of the investor’s capital. Although there is no guarantee provide by any mutual fund regarding the guaranteed returns. The investor of the mutual fund can end up with the losses.
2.1 General Classification of Mutual Funds
In India, the funds are broadly categorized by the structure, investment objectives, etc. The funds schemes are classified to cater the services to the different requirement of the investors. The funds are mainly classified into two groups like Open-end and Closed-end funds, but some additional features of the funds also come to the general classification like load and no-load funds or tax exemption funds. These funds do not provide any extra facility than their peer funds but they classified to take their benefits with some additional features.
2.1.1 Open-end Funds
The open-ends are very popular type of mutual fund in the market. The open-end funds units can be purchase and sale at any time so they are closer to the people. The open-end funds their units in the terms of Net Asset Value (NAV) i.e. the investor can buy one unit of mutual fund is purchase one NAV. The NAV is daily listed on the AMFI... [continues]
Mutual Fund Schemes in India
In India, mutual funds are becoming very popular now days. The uncertainty of the stock prices is increasing so the investor wants to invest in such investment schemes where some management will take care of his investment by providing the nominal charges. The mutual funds provide lots of benefits as compare to the charges paid by the investors. The SEBI as a regulator takes care of the mutual fund such that the mutual fund works to protect the interest of the investor so in that sense investor are much secured about the transactions and investment. The investor need to agile about the investment capital appreciation by tracking to the different mutual fund but need not be worry about the investment frauds. Once investor invests in the mutual fund, further on its mutual fund’s responsibility to take care of the investor’s capital. Although there is no guarantee provide by any mutual fund regarding the guaranteed returns. The investor of the mutual fund can end up with the losses.
2.1 General Classification of Mutual Funds
In India, the funds are broadly categorized by the structure, investment objectives, etc. The funds schemes are classified to cater the services to the different requirement of the investors. The funds are mainly classified into two groups like Open-end and Closed-end funds, but some additional features of the funds also come to the general classification like load and no-load funds or tax exemption funds. These funds do not provide any extra facility than their peer funds but they classified to take their benefits with some additional features.
2.1.1 Open-end Funds
The open-ends are very popular type of mutual fund in the market. The open-end funds units can be purchase and sale at any time so they are closer to the people. The open-end funds their units in the terms of Net Asset Value (NAV) i.e. the investor can buy one unit of mutual fund is purchase one NAV. The NAV is daily listed on the AMFI... [continues]
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