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  • Financial Planning

    In finance, investment is putting money into an asset with the expectation of capital appreciation.

  • Mutual Funds

    When it comes to the world of investing, three words come to mind: overwhelming, intimidating, and scary.

  • Time for changes

    Bottoms in the investment world don't end with four-year lows; they end with 10- or 15-year lows.

  • Solution

    The stock market is filled with individuals who know the price of everything, but the value of nothing.

Mutual funds

Mutual funds

Mutual funds are a type of certified managed combined investment schemes that gathers money from many investors to buy securities. There is no such accurate definition of mutual funds, however the term is most commonly used for collective investment schemes that are regulated and available to the general public and open-ended in nature. Hedge funds are not considered as any type of mutual funds.

Mutual funds are identified by their principal investments. They are the 4th largest category of funds that are also known as money market funds, bond or fixed income funds, stock or equity funds and hybrid funds. Funds are also categorized as index based or actively managed.

In a mutual fund, investors pay the funds expenditure. There is some element of doubt in these expenses. A single mutual fund may give investors a choice of various combinations of these expenses by offering various different types of share combinations.

The fund manager is also known as the fund sponsor or fund management company. The buying and selling of the funds investments in accordance with the funds investment is the objective. A fund manager has to be a registered investment advisor. The same fund manager manages the funds and has the same brand name which is also known as a fund family or fund complex.

As long as mutual comply with requirements that are established in the internal revenue code, they will not be taxed on their income. Clearly, they must expand their investments, limit the ownership of voting securities, disperse most of their income to their investors annually and earn most of their income by investing in securities and currencies.

Mutual funds can pass taxable income to their investors every year. The type of income that they earn remains unchanged as it gets transferred to the shareholders. For e.g., mutual fund distributors of dividend income are described as dividend income by the investor. There is an exception: net losses that are incurred by a mutual fund are not distributed or passed through fund investors.

Mutual funds invest in various kinds of securities. The various types of securities that a particular fund may invest in are mentioned in the funds prospectus, which explain the funds investments objective, its approach and the permitted investments. The objective of the investment describes the kind of income that the fund is looking for. For e.g., a "capital appreciation" fund generally looks to earn most of its returns from the increase in prices of the securities it holds rather than from a dividend or the interest income. The approach of the investment describes the criteria that the fund manager may have used to select the investments for the fund.

The investment portfolio of a mutual funds investment is continuously monitored by the funds portfolio manager or managers who are either employed by the funds manager or the sponsor.

Advantages of Mutual funds are:

1) Increase in diversification.

2) Liquidity on a daily basis.

3) Professional investment management.

4) Capacity to participate in investments that may be available only for larger investors.

5) Convenience as well as service.

6) Government oversight.

7) Easier comparison

like its advantages, the Mutual funds have disadvantages too. Here are some of them:

1) High fees.

2) Less control over timing of recognition of gains.

3) Much lesser predictable income.

4) No opportunity for customization.

There are different types of Mutual funds as well. Here are some of them.

Open-end funds

In open-end mutual funds, one must be willing to buy back their shares from investors at the end of every business day at the net asset value that is calculated for that day. Most of the open-end funds also sell shares to the public on every business day. These shares are also priced at a particular net asset value. A professional investment manager will oversee the portfolio, while buying or selling securities whichever is appropriate. The total investment in the funds will be variably based on share buying, share redemptions and fluctuation in the market variation. There are also no legal limits on the number of shares that can be issued.

Close-end funds

Close-end funds generally issue shares to the public just once, when they are created via an initial public offering. These shares are then listed for trading on a stock exchange. Investors, who dont wish any longer to invest in the funds, cannot sell their shares back to the funds. Instead, they must sell their shares to another investor in the market as the price they may receive may be hugely different from its net asset value. It may be at a premium to net asset value (higher than the net asset value) or more commonly at a lesser to net asset value (lower than the net asset value). A professional investment manager will oversee the portfolio, in buying or selling securities whichever is appropriate.

Unit Investment Trusts

UIT or Unit Investment Trusts issue shares to the public just once when they are created. The investors in turn can cash in on the shares directly with the fund or they may also sell their shares in the market. UITs do not have any professional investment managers. Their portfolio of securities is established by the creation of the UITs and does not undergo any changes. UITs in general have a limited life span, which is limited at their creation.

Market Watch
  • MF News
  • IPO News

S Krishna Kumar S Krishna Kumar of Sundaram Mutual Fund said that the earnings have been pretty good and that retail private banks have seen strong delivery.
Fri, 28 Jul 2017 12:49:36 +0530


Sunil Singhania Interview with Sunil Singhania of Reliance Mutual Fund
Wed, 26 Jul 2017 10:29:45 +0530


Nilesh Shah Nilesh Shah said that the approach in the market should be that of bottom up one.
Tue, 25 Jul 2017 12:56:54 +0530


Here are Lalit Nambiar#39;s fundamental views on the market Watch the interview of Lalit Nambiar of UTI MF with Prashant Nair and Ekta Batra on CNBC-TV18, in which he shared his readings and outlook on market and specific stocks.
Tue, 25 Jul 2017 12:24:08 +0530


India is witnessing sizable surge in FIIs debt investments; here’s why India today has one of the highest real interest rates in the world. With CPI inflation at around 1.54 percent, and with 10-year benchmark gilt at around 6.46%, the real interest rate is too attractive to be ignored.
Tue, 25 Jul 2017 10:00:50 +0530


Will see much better earnings growth in FY19-20: Ashwini Agarwal “Globally we are interested in large domestic markets. We have operations in Indonesia, Saudi Arabia and now we have launched a fund in India and we would like to do such kind of things in other countries. We are interested in local markets where operations are scalable,” Ashwini Agarwal, Co-Founder Partner of Ashmore Investment Management India LLP told CNBC-TV18.
Sat, 22 Jul 2017 19:00:02 +0530


Here#39;s a fundamental view on the market from Motilal Oswal’s Gautam Sinha Roy Watch the interview of Gautam Sinha Roy of Motilal Oswal Mutual Fund with CNBC-TV18#39;s Anuj Singhal and Surabhi Upadhyay where he shared his readings and outlook on the market and specific stocks and sectors.
Fri, 21 Jul 2017 16:09:28 +0530


R Sukumar R Sukumar of Franklin Templeton Investments said that in this market, one could look for stock ideas which are undervalued.
Thu, 20 Jul 2017 10:47:31 +0530


Rajeev Thakkar Midcap IT companies that are in research, engineering services, digital space will benefit, said Rajeev Thakkar of PPFAS.
Wed, 19 Jul 2017 16:28:41 +0530


S Krishna Kumar S Krishna Kumar of Sundaram Mutual Fund said that the market could still see a positive bias but one needs to keep an eye on earnings trajectory.
Tue, 18 Jul 2017 11:42:49 +0530


Nilesh Shah In a CNBC-TV18 exclusive, Nilesh Shah of Kotak Mahindra AMC says that markets are not at an all-time high in terms of valuations. He also adds that there is froth in certain sections of the market.
Mon, 17 Jul 2017 08:23:35 +0530


Manish Sonthalia There is a correction which is overdue for this market and the sooner it comes the healthier it would be for the market, said Manish Sonthalia, Head Equities-PMS, Motilal Oswal AMC.
Fri, 14 Jul 2017 19:00:38 +0530


Video: Market view of UTI MF’s V Srivatsa Watch the interview of V Srivatsa, EVP Fund Manager at UTI MF with Prashant Nair and Ekta Batra on CNBC-TV18, in which he shared his readings and outlook on market and specific stocks.
Thu, 13 Jul 2017 12:21:37 +0530


Market expecting a rate cut down the line: UTI MF Retail inflation has seen a sharp slowdown in June while May industrial output has come in at 1.7 percent. In an interview to CNBC-TV18, Amandeep Chopra, Group President and Head of Fixed Income at UTI MF assesses the impact on the bond market.
Thu, 13 Jul 2017 11:27:03 +0530


Why you should make a balanced mutual fund a part of your portfolio If the investor takes position in equity through balanced funds, they get to realise equity growth potential and lower fund volatility.
Thu, 13 Jul 2017 11:14:33 +0530


Subscribe to Security and Intelligence services (India) : Choice Broking Choice Broking has come out with its report on Security and Intelligence services. The research firm has recommended to “Subscribe ” the IPO in its research report as on July 28, 2017
Fri, 28 Jul 2017 16:59:38 +0530


Subscribe to Cochin Shipyard: HEM Securities HEM Securities has come out with its report on Cochin Shipyard. The research firm has recommended to “Subscribe ” the IPO in its research report as on July 28, 2017
Fri, 28 Jul 2017 13:44:50 +0530


Subscribe to Cochin Shipyard: ICICI Direct ICICI Direct has come out with its report on Cochin Shipyard. The research firm has recommended to “Subscribe ” the IPO in its research report as on July 25, 2017
Wed, 26 Jul 2017 17:10:16 +0530


​Global Space Technologies SME IPO to open on July 26, issue price at Rs 66/sh The issue and the net issue will constitute 26.48 percent and 25.14 percent, respectively of the post issue paid-up equity share capital of the company.
Tue, 25 Jul 2017 11:59:16 +0530


Subscribe to Keerti Knowledge and Skills : Khambatta Securities Khambatta Securities has come out with its report on Keerti Knowledge and Skills . The research firm has recommended to “Subscribe ” the IPO in its research report as on July 24, 2017.
Mon, 24 Jul 2017 17:08:48 +0530


HDFC Life files IPO papers with insurance regulator IRDA The draft of IPO papers did not mention anything about Max Life merger in any form.
Thu, 20 Jul 2017 11:35:21 +0530


Godrej Agrovet files IPO papers with Sebi Godrej Industries arm Godrej Agrovet on Wednesday filed draft papers with markets regulator Sebi to raise an estimated Rs 1,000-1,200 crore through an initial public offering.
Wed, 19 Jul 2017 20:11:34 +0530


Shanti Overseas (India) ltd SME IPO To open on 21st july- HEM securities HEM securities have come out with the research report on Shanti Overseas
Tue, 18 Jul 2017 15:55:14 +0530


Captain Technocast Ltd SME IPO To Open On 20th July- HEM Securities HEM securities have come out with the research report on Captain Technocast
Tue, 18 Jul 2017 15:39:23 +0530


Hemant Kanoria NULL
Tue, 18 Jul 2017 11:27:53 +0530


Salasar Techno Engineering IPO oversubscribed 273 times The IPO received bids for 90,63,94,500 shares against the total issue size of 33,21,000 shares, data available with the NSE till 1930 hours showed.
Mon, 17 Jul 2017 20:45:25 +0530


SBI Life gets ready for a big IPO this year, may raise Rs 8500-9000 cr Once listed, this would be the second life insurer after ICICI Prudential Life Insurance to be listed on the stock exchanges.
Mon, 17 Jul 2017 19:54:58 +0530


SBI Life Insurance files DRHP, to issue up to 12 cr shares via IPO SBI Life Insurance is a joint venture between State Bank of India (SBI) with 74 percent stake and BNP Paribas Cardif with the remaining 26 percent.
Mon, 17 Jul 2017 14:46:05 +0530


Subscribe to Salasar Techno Engineering: Choice Broking Choice Broking has come out with its report on Salasar Techno Engineering. The research firm has recommended to “Subscribe ” the IPO in its research report as on July 13, 2017
Thu, 13 Jul 2017 13:41:35 +0530


Subscribe to Salasar Techno Engineering: Nirmal Bang Nirmal Bang has come out with its report on Salasar Techno Engineering. The research firm has recommended to “Subscribe ” the IPO in its research report as on July 13, 2017.
Thu, 13 Jul 2017 13:19:35 +0530