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<br>A mutual fund raises money from investors and invests the money on their behalf. Charge a small fee to manage the money. Mutual funds are an ideal investment vehicle for regular investors who don't know much about investing. Investors can choose a mutual fund scheme based on their financial goal and start investing to achieve it.<br>
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A mutual fund raises money from investors and invests the money on their behalf. Charge a small fee to manage the money. Mutual funds are an ideal investment vehicle for regular investors who don't know much about investing. Investors can choose a mutual fund scheme based on their financial goal and start investing to achieve it.
How to invest in mutual funds? • You can invest directly with a mutual fund or hire the services of a mutual fund advisor. If you are investing directly, you will invest in the direct plan of a mutual fund scheme. If you are investing through an advisor or broker, you will invest in the regular scheme plan. • If you want to invest directly, you will need to visit the website of the mutual fund or its authorized branches with the relevant documents. The advantage of investing in a direct plan is that you save on the commission and the money invested would add considerable returns over a long period of time. The biggest drawback of this method is that you will have to complete the paperwork, investigate, control your investment ... all on your own.
Types of mutual funds in India - • The Securities and Exchange Board of India has classified mutual funds in India into four general categories: • Equity mutual funds • Debt mutual funds • Hybrid mutual funds • Solution Oriented Mutual Funds
Equity Mutual Fund Scheme: These schemes invest directly in stocks. These schemes can deliver superior returns, but they can be risky in the short term, as your luck depends on how the stock market performs. Investors should look for a longer investment horizon of at least five to ten years to invest in these plans. There are 10 different types of stock schemes.
Debt Mutual Fund Schemes: These schemes invest in debt securities. Investors should opt for debt schemes to achieve their short-term goals that are below five years. These schemes are more secure than stock schemes and provide modest returns. There are 16 subcategories in the debt mutual fund category.
Hybrid Mutual Fund Schemes - These schemes invest in a combination of equity and debt, and an investor must choose a scheme based on their appetite for risk. Based on their allocation and investment style, hybrid schemes are classified into six types. • Solution-Oriented Schemes: These MF capital gains statement are designed for particular solutions or goals, such as retirement and children's education. These schemes have a mandatory five-year lockout period.
Mutual Fund Charges: The total expenses incurred by your mutual fund financial statements scheme are collectively referred to as the expense ratio. The expense ratio measures the unit cost of managing a fund. The expense ratio is generally between 1.5% and 2.5% of the plans' average weekly net assets.
About Us • CAMS is a technology driven financial infrastructure and services provider to Mutual Funds and other financial institutions for over two decades. As the market leading Registrar and Transfer Agency to the Indian Mutual Fund industry, CAMS serves ~70% of the average assets under management – as of August 2021. We also provide technology enabled service solutions to Alternative Investment Funds and Insurance Companies. Besides serving as a B2B service partner, CAMS also serves customers through a variety of touch points such as pan-India network of service centres, white label call centre, online, mobile app and chatbot. • Website - https://www.camsonline.com/
