What is a Mutual Fund ?

I don’t mine repeating myself several times, unless you are helping someone to explain things. This is the post for my junior blogcolleagues and for my team trying to dig for basics of Mutual fund , Asset management  company , selection of funds and comparison of scheme with others.

So friends, A mutual fund is a trust that pools the money of several investors and manages investments on their behalf. Legally it is like any other company you know of. Hence, the fund is also called a mutual fund company. The fund company takes your money and like you from other new investors. This is added to the money that’s already invested with the fund.
Asset management company (AMC) – Investing and managing the collected money is a difficult task. The fund company delegates this to a company of professional investors, usually experts who are known for smart stock picks. This company is the Asset Management Company (AMC) and the fund company usually delegates the job of investment management for a fee. Continue reading “What is a Mutual Fund ?”

MUTUAL FUNDS – Please read the disclosure carefully

This is a nice summary of the flaws in many mutual funds published on Market Watch. Too many mutual funds are simply index fundsimages disguised as something else. And most of the rest are simply attempts to market a product that isn’t designed to actually add value (but sounds fancy enough to accumulate assets). If you missed John Bogle’s discussion on the flaws in the mutual fund industry you should watch it here.

The 10 things via Market Watch:

  1. “Cheap funds often outperform pricey ones.”
  2. “We can’t beat the market.”

  3. “When skill fails, we just double (or quintuple) our odds.”

  4. “People aren’t buying our product…” Continue reading “MUTUAL FUNDS – Please read the disclosure carefully”

Mutual Fund Selection

I do not write much on personal finance, and I doubt how many investors have the visibility on these 7 factors to invest in the blogmutual funds.

Seven Factors to Consider:

  1. Management Stability: If you find a great manager, hang on to them. Top managers usually continue to perform better in up and down markets, because they have the stability and experience to stay focused on their objective. Let them work for you and enjoy the stability.
  2. Management Participation: The management team of a great mutual fund usually invests heavily in their own fund. If it is good enough for their money, you can expect that they have a vested interest in taking care of yours. Continue reading “Mutual Fund Selection”

The facts and Myths about Mutual fund

This morning was comparing mutual funds for the personal investment and than thought of sharing some basic myths and facts on them.BTXtODVCQAALUaw

Wealth creation over the years has changed its avenues and area of interest for the investors in India. The prototype investment where the post offices and typically the scheduled banks through savings and fixed deposits have changed and with the awareness of finance, Mutual fund has become an excellent route to create wealth for the public at large.
“Mutual fund is a pool of money is invested in accordance with the common objective stated before the investment to the investors.”
Here is the concept of mutual fund which is a suitable for the common man as it offers an opportunity to invest and diversified, professionally managed basket of securities comparatively at low-cost.  Continue reading “The facts and Myths about Mutual fund”

Mutual Fund Basics

Wealth creation over the years has changed its avenues and area of interest for the investors in India. The prototype investment where

the post offices and typically the scheduled banks through savings and fixed deposits have changed and with the awareness of finance, Mutual fund has become an excellent route to create wealth for the public at large.

“Mutual fund is a pool of money is invested in accordance with the common objective stated before the investment to the investors.”
Here is the concept of mutual fund which is a suitable for the common man as it offers an opportunity to invest and diversified, professionally managed basket of securities comparatively at low cost. The investors pool their money to the fund manager and the fund manager invest the money in the securities and after generating returns passed back to the investors. Continue reading “Mutual Fund Basics”