Mutual Fund Services

A mutual fund can be defined as the financial intermediary that enables a group of investors to pool their money with the aim of achieving a specific investment goal. The mutual fund will be managed by a professional fund manager who will be in charge of investing the pooled funds in particular bonds, stocks, or other securities.

• A mutual fund is a portfolio of stocks or bonds purchased on your behalf by a professional fund manager. The entire investment volume is distributed in small units called units by a mutual fund.
• The manager invests the total sum, known as the corpus, in various financial securities such as bonds, debentures, and money market instruments, using sound judgment and market knowledge.
• Profits from these investments are then allocated to investors in relation to their initial investments.

For decades, mutual funds have become the vehicle of choice for retail investors for a number of reasons. Diversification, professional management, higher liquidity, simplicity, economies of scale, and transparency are just a few of Mutual Fund’s benefits. Furthermore, some mutual fund schemes offer tax-free returns in the form of dividends. As a result, it allows you to invest and develop wealth without paying taxes on it.

The mutual fund’s success can be measured in its Net Asset Value (NAV). Besides NAV, a ratio of the mutual fund’s returns tracked over periods can also be used as a performance metric. Aside from these, economic newspapers and financial research organizations also publish a variety of studies that provide information on the performance of funds as well as their rating.