All About Mutual Funds

MUTUAL FUNDS

What are Mutual Funds?

• A mutual fund is a pool of money managed by a professional fund manager.

• A collective vehicle that are regulated and sold to general public for investment purpose.

• Each scheme of a mutual fund have different character and objective to suite a variety of investment needs.

Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Mutual Fund Prospectus• Prospectus contains information that

is crucial to making an informed decision while investing in mutual fund.

• It contains information like investment objective, investment strategy, investment risk, Portfolio Holdings disclosure etc.


Benefits of Mutual Fund?• Professional Management

• Diversification

• Liquidity

• Flexibility

• Cost Effective

• Well RegulatedDisclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Types Of FundsMajor Asset Classes:

• Money Market Funds

• Bond Funds

• Balanced Funds

• Dividend

• Equity Funds

• Specialty Funds


What is Money Market Fund?

• This type of fund's main objective is to hold investment instruments that are liquid and secure. This type of fund is usually held on a short-term basis and invests in money market securities. Examples: Treasury bills, banker's acceptances, and short term notes.

• One thing an investor should be aware of is that these funds are NOT guaranteed like a Fixed deposit, and hold NO fixed return, but are of low risk.


This type of fund's main objective is to provide a steady stream of income, and holds bonds issued by either governments or corporations.

What is a Bond Fund?


What is Balanced Fund?

• This type of fund's main objective is to hold an optimal mix of investments among cash, equities, and income-producing securities.

• This type of investment is ideal for someone who wants a better return than a fixed income, but also wants less risk than equity.


This type of fund's main objective is to provide long-term growth through equity/stock investments.

Different types of equity funds:

1 Diversified Equity Funds2. Sector specific Funds3. Index Funds4. Middle Capitalization Funds5. International Equity Funds 6. Others

What is an Equity Fund?


What is Specialty Fund?

• This type of fund's main objective is to concentrate its holdings in one particular sector, geographic region, or in one capital market.

• Examples: telecommunications, health care, technology, financial services, European markets or Japan.

* As you specialize, you minimize diversification, and that results in increased risk.


Types Of Mutual funds

• Open-End funds: Funds that can sell and purchase units at any

point in time are classified as open – end funds.

• Closed-end Funds:Funds that can sell a fixed number of units only during the New Fund Offer (NFO)

period are known as Closed-end Funds.


Risk & Reward Potential For Types Of FundsGeneral, risk & reward go hand in hand with mutual fund investments

Lower Risk Moderate Higher Riskand Return and Return

Money Markets Funds

Short- and Intermediate- Term

Bond Funds

Long-Term Bond Funds

Balanced Funds

Growth & Income Stock Funds

Growth Stock Funds

Aggressive Growth Stock

Funds


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All About Mutual Funds

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