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The objectives of investment in mutual funds include:

  • Exposure to the stock market
  • Exposure to a certain sector in the market
  • Get expert investment advise
  • Get good returns out of the investments
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Q: Objectives of investment in a mutual fund?
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Summary for mutual fund awareness?

Mutual Fund An investment vehicle which is comprised of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market securities and similar assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus. Reliance Mutual Fund can be taken as an exemplary outstanding Mutual funds available at present.


What is the full form of UIT mutual fund?

Unit Investment Trust Mutual Fund


What do you mean by mutual fund?

Mutual Fund is an open-ended fund operated by an investment company which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives. Mutual funds raise money by selling shares of the fund to the public, much like any other type of company can sell stock in itself to the public.


When you own a mutual fund what exactly do you own?

Mutual fund is a low risk investment. If you invest in a mutual fund, you owns shares of the mutual fund company who is selling you fund. But you do not actually own any underlying asset of the stocks or securities that mutual fund has invested in even they are using your money to invest.


What is a mutual fund?

A mutual fund is an investment vehicle that gathers funds from like minded investors and invests in equities, bonds of your choice at a professional fee. Mutual funds are operated by money mangers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus. You still have a risk and still need to do your homework to choose mutual funds carefully.A mutual fund is a pool of money contributed by individuals who have similar financial goals. The money collected is then invested in various securities such as equities, debentures/bonds and/or money market instruments.

Related questions

Can you please tell me how do we select a mutual fund?

The first step is to find out the objectives of investment.The objectives of investment in mutual fund will be low risk or high risk. If the objectives of the investement are same as the investors, then one can go on to the next step. It is very important to evaluate the past performance of the mutual fund. Through this evaluation an investor can get an idea of performance of the mutual fund. There are lot of online trade portals that provide the information like Reliance mutual fund,ICICI,HDFC.


What do they sell in mutual fund stores?

Mutual Fund Products & Investment Advise.


Summary for mutual fund awareness?

Mutual Fund An investment vehicle which is comprised of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market securities and similar assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus. Reliance Mutual Fund can be taken as an exemplary outstanding Mutual funds available at present.


What is the full form of UIT mutual fund?

Unit Investment Trust Mutual Fund


which mutual fund company would you recommend in canada?

TD Mutual Fund Company has high recommendations on their mutual fund activity. It is one of the largest investment companies in Canada. TD Mutual Fund has a long history of helping investors with a variety of investment portfolios.


What is the responsibility of a mutual fund's management company?

The management company is responsible for selecting an investment portfolio that is consistent with the objectives of the fund as stated in its prospectus and managing the portfolio in the best interest of the shareholders.


What do you mean by mutual fund?

Mutual Fund is an open-ended fund operated by an investment company which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives. Mutual funds raise money by selling shares of the fund to the public, much like any other type of company can sell stock in itself to the public.


What are the guidliance issued by sebi for advertisement published by mutual fund?

Mutual Fund investment are subject to market-risk, please read the offer document carefully before investment


Can Indian mutual fund invest in shares and securities abroad?

Yes, they can. But, not all mutual funds can invest in shares and securities abroad. They can only do so, if the mutual fund scheme has it in the fund objectives.


Who determines the investment policies of the mutual fund?

The Fund Manager and the Asset Management Company


When you own a mutual fund what exactly do you own?

Mutual fund is a low risk investment. If you invest in a mutual fund, you owns shares of the mutual fund company who is selling you fund. But you do not actually own any underlying asset of the stocks or securities that mutual fund has invested in even they are using your money to invest.


How do you select a mutual fund?

The first step is to find out the objectives of the investment. The objectives of an investment in mutual funds will be low risk or high risk, short or long term focus on liquidity, fixed income or equity. If the objectives of the investment are the same as that of the investor, then one can go on to the next step. It is very important to evaluate the past performance of the mutual fund. Through this evaluation the investor can get an idea of how the performance of the fund compares to other available options. One can also determine if the objectives that are stated have been fulfilled. This can be achieved by finding out which mutual funds have performed the best in the market. A good mutual fund should have a track record of consistently outperforming its benchmark. It is also a good idea to evaluate the performance of the mutual funds over a number of different periods of time. These could be three months, one year or three years depending on what period the investor wishes to keep his investment. The mutual funds that fall among the top five should then be shortlisted by the investor. The third step to choose a good mutual fund is diversification. An investor must diversify his funds in order to expand the amount of investment. This means that the investor should select two or more mutual funds that have similar investment objectives. This will help the investor to minimize the risks involved with his investments. Before choosing a Mutual Fund, the investor should examine the costs of the fund. These include sales loads, annual fund expenses and also management fees. There are a lot of Online trading portals that are listed with the NSE and BSE that help you to choose the right funds by providing all the necessary market information. Reliance Mutual Funds, ICICI, HDFC, Franklin Templeton are some of the best that are available. Reliance Mutual Funds provides a lot of information to investors through their knowledge centre.