Type of Service Provider Consulting Firm Mutual Funds Services, Requirement Type Corporate, Type of Service Contract Retainer Based

Mutual fund is a mechanism for pooling the resources by issuing units to the investors and investing funds in securities aligned with objectives as disclosed in offer document. Investments in securities are spread across a wide cross, Section from multiple fields and sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in a similar direction in the same proportion simultaneously time. Mutual fund issues units to the investors in accordance with quantum of money invested by them. Investors of mutual funds are known as unit holders. The profits or losses are shared by the investors in proportiheading into their investments. The mutual funds normally come out with a variety of schemes with different investment objectives which are launched on different occasions time. A mutual fund is necessary to be registered with securities and exchange board of india sebi which regulates securities markets before it can collect funds from the public. Units of mutual fundsunits represent the extent of an investor s share in the assets of the scheme. Nav or net asset value the capability of a particular scheme of a mutual fund is denoted by net asset value nav . Mutual funds invest the money collected from the investors in securities markets. In straightforward terms net asset value serves as the marketplace importance of the securities held by the scheme. Since market value of securities changes nav of, Every day a scheme also varies on day to day basis. The nav per unit is the market value of securities of a scheme divided calculated from the entire sum total units available of the scheme on any particular date. For example, If the market value of securities of a mutual fund scheme is rs 200 lakhs and the mutual fund has issued 10 lakhs units of rs. 10 each to then the, The investors nav per unit of the fund is rs. 20. Nav is required to be disclosed by the mutual funds with regular frequency basis, Daily or weekly, Contingent upon the variety of scheme. Open, Ended fund/ schemean open, Ended fund or scheme is one that can be found in subscription and repurchase on a continuous basis. These schemes are lacking a fixed maturity period. Investors can conveniently buy and sell units at net asset value nav related prices which are declared on a daily basis. The key feature of open, End schemes is liquidityclose, Ended fund/ schemea close, Ended fund or scheme has a stipulated maturity period e. G. 5, 7 years. The fund is open for subscription only during a specified period in that instance of launch of the scheme. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where the units are listed. For the goal of provide an exit route to some close, Ended funds, The investors give an option of selling back the units to the mutual fund through periodic repurchase at nav related prices. Sebi regulations stipulate that at least among the top two exit routes is supplied to the investor i. E. Either repurchase facility or through listing on stock exchanges. These mutual funds schemes disclose nav generally on weekly basis. Why should you invest through mutual funds?while thinking of investing in the people ask, Stock market why they cannot invest directly. Very often people are told that the way to begin is through mutual funds. They should take help of professional fund managers to make investments. Professional managementevery individual is not guaranteed to be very savvy about investment management. Mutual funds are handled by professional who understand, Fund managers the markets. They will pick stocks for you. You are looking at after doing an extensive research on future prospects for profits from the firm