support@formeservices.com | +91 7575001324

Mutual Funds
Best Services in Rajkot

Inquiry Now

What is Mutual Fund?

mutual fund

A Mutual Fund brings together a large number of investors, who pool their resources to invest collectively for their mutual benefit. The money is managed by a fund manager, who is supported by a team of analysts and experts to help him invest the money. A fund could have many objectives such as capital growth, steady income, capital protection, tax saving, etc. Depending on its objectives, the fund manager will allocate money to different financial instruments such as equity and debt.

It is a trust that collects money from a number of investors who share a common investment objective and invests the same in equities, bonds, money market instruments and/or other securities. And the income / gains generated from this collective investment is distributed proportionately amongst the investors after deducting applicable expenses and levies, by calculating a scheme’s “Net Asset Value” or NAV.

Benefits Of Mutual Fund.

Helps in Long term Wealth creation

Diversification

Professional management

Liquid

Well regulated

Tax Benefit

Types Of Mutual Funds
1.Equity Mutual Fund
  • Invest primarily in Equity & Equity related securities
  • Could be volatile in the short term but tends to perform well over longer horizon
  • Suitable for Investors with high risk appetite & long investment horizon
    • 2.Debt Mutual Fund
  • Invests primarily in Debt Securities such as Corporate bonds, Government securities, money market instruments etc.
  • Less Volatile than Equity & Hybrid funds
  • Suitable for risk averse investors
    • 3.Hybrid Mutual Fund
  • Invests in mix of Equity & Debt securities as per the investment objectives of the fund
  • Risk-return matrix is between equity & debt funds
  • Suitable for investors who want to participate in Equity markets but do not want much risk
    • 4.Index Funds
  • Index Funds replicate a particular index such as Nifty 50, Sensex or a particular sectoral index such as Banking, Consumption etc
  • Return from the index tends to mirror the index which it is replicating
  • It is a passive investment strategy as Fund managers do take active calls

    • Why Invest In Mutual Fund?

  • Professional expertise Investing in financial markets requires a certain amount of skill. You need to research the market and analyse the best options available. You need knowledge on matters such as macro economy, sectors, company financials, from an asset class perspective. This requires a significant amount of time and commitment from you.
  • Returns:One of the biggest mutual fund benefits is that you have the opportunity to earn potentially higher returns than traditional investment options offering assured returns. This is because the returns on mutual funds are linked to the market’s performance. So, if the market is on a bull run and it does exceedingly well, the impact would be reflected in the value of your fund.
  • Diversification: If you were investing in stocks and had to diversify, you would have to select at least ten stocks carefully from different sectors. This can be a lengthy, time-consuming process. But when you invest in mutual funds, you achieve diversification instantly. For instance, if you invest in a mutual fund that tracks the BSE Sensex, you would get access to as many as 30 stocks across sectors in a single fund. This could reduce your risk to a large extent.
  • Tax benefits: Mutual fund investors can claim a tax deduction of up to Rs. 1.5 lakh by investing in Equity Linked Savings Schemes (ELSS). This tax benefit is eligible under Section 80C of the Income Tax Act. ELSS funds come with a lock-in period of 3 years. Hence, if you invest in ELSS funds, you can only withdraw your money after the lock-in period ends.
    • Any Investment that you like.
    Contact for free
    Consultancy
    Clients Words

    Using the outcomes from the job, we will put together
    a plan for the most effective marketing strategy to get
    the best results.

    Clients
    Qr Code
    Account Details:

    Account Holder: Form E Services
    Account Number: 50200058593908
    IFSC: HDFC0000101
    Branch: Yagnik Road - Rajkot - Gujarat
    Account Type: Current
    Virtual Payment Address:9825444036@hdfcbank

    Useful Links:
    Home| About Us| Account Management| Taxation Services| Financial Services| Investment| Contact Us