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    Mutual Funds Back

    Basic, Benefits, Types And Taxation

    What is a Mutual Fund?

    A Mutual Fund is an investment vehicle that pools the savings of a number of investors and invests the same in a variety of different financial instruments, or securities. The income earned through these investments and the capital appreciation realised by the scheme are shared by its unit holders in proportion to the number of units owned by them.

    Mutual Funds can thus be considered as financial intermediaries in the investment business that collect funds from the public and invest on behalf of the investors. The losses and gains accrue to the investors only. The investment objectives outlined by a Mutual Fund in its prospectus are binding on the Mutual Fund scheme. The investment objectives specify the class of securities a Mutual Fund can invest in. Mutual Funds invest in various asset classes like equity, bonds, debentures, commercial paper and government securities.

    What is an Asset Management Company? What are the benefits of investing in Mutual Funds? Who should invest in Mutual Funds? Are there any risks involved in investing in Mutual Funds? What are the different types of Mutual funds? What are the different plans that Mutual Funds offer? Is there any minimum lock-in period for my units? What are ELSS Funds? What are Exchange Traded Funds (ETFs)? What are the factors that influence the performance of Mutual Funds? As a new investor how do I select a particular scheme? What exit load will I have to pay as on date? When will I be able to see my purchase/order details? Can I redeem my Mutual Fund investments anytime? What are different types of taxes levied on Mutual Funds? How are Capital Gains Taxes charged?