The mutual fund-a for investment!
Mutual funds are well-known when it comes to investing, but a new investor may be unaware of the underlying costs and fees involved. Investment in mutual funds is done with an asset management company (AMC). In order to prevent an investor from redeeming his funds before a certain time, an exit load at a percentage value is charged.
Every AMC needs to manage its day-to-day workings, market its funds to other investors and cover costs. This is covered under the Expense Ratio payable by the investor. Depending on the nature of the fund and the plan, the charges vary. However, the overall impact is reflected on the returns.
Taxation also forms a crucial part of investment which is determined by the holding period and nature of the scheme. These costs and expenses allow an investor to determine his returns and plan investments accordingly.
read more:- https://transfin.in/all-you-need-to-know-about-the-hidden-costs-in-mutual-funds-investments
As per the SEBI circular regarding scheme categorization , most of the Mutual funds have renamed, merged some schemes and changed their category.
All this has been covered in the Portfolio reports and various other reports provided in this mutual fund software with the necessary changes as per rules of SEBI.
For more information visit @- https://www.redvisiontech.com/
When a bunch of investors with a common financial goal invest in a mutual fund, a pool of money is created.
In order to yield returns to our investors’ portfolio, the money is later managed by professional fund managers, who invest in bonds, stocks & various other money market instruments.The First Concept- Mutual funds are believed to be first traced back in the year 1774 by a dutch merchant Adriaan van Ketwich.
In the year 1772-73, his clients suffered a major loss, as an investment in the British East India Company didn’t turn out ideal.Bearing the heavy loss in mind, Ketwich came up with the concept of diversification of investments.
This eventually reduced the risk of loss to budding and existing investors.
In 1987 UTI saw the birth of public sector mutual funds.
Sectors like Life Insurance Corporation of India (LIC), SBI Mutual Fund, Punjab National Bank Mutual Fund, Indian Bank Mutual Fund, Bank of Baroda Mutual Fund & many more surfaced.
