Wealth Portfolio Login
Client      Advisor     
Forgot Password
 
Mutual Funds

Mutual funds are a type of certified managed combined investment schemes that gathers money from many investors to buy securities. There is no such accurate definition of mutual funds, however the term is most commonly used for collective investment schemes that are regulated and available to the general public and open-ended in nature. Hedge funds are not considered as any type of mutual funds.
Mutual funds are identified by their principal investments. They are the 4th largest category of funds that are also known as money market funds, bond or fixed income funds, stock or equity funds and hybrid funds. Funds are also categorized as index based or actively managed.

In a mutual fund, investors pay the funds expenditure. There is some element of doubt in these expenses. A single mutual fund may give investors a choice of various combinations of these expenses by offering various different types of share combinations.

The fund manager is also known as the fund sponsor or fund management company. The buying and selling of the funds investments in accordance with the funds investment is the objective. A fund manager has to be a registered investment advisor. The same fund manager manages the funds and has the same brand name which is also known as a fund family or fund complex.

As long as mutual comply with requirements that are established in the internal revenue code, they will not be taxed on their income. Clearly, they must expand their investments, limit the ownership of voting securities, disperse most of their income to their investors annually and earn most of their income by investing in securities and currencies.
Mutual funds can pass taxable income to their investors every year. The type of income that they earn remains unchanged as it gets transferred to the shareholders. For e.g., mutual fund distributors of dividend income are described as dividend income by the investor. There is an exception: net losses that are incurred by a mutual fund are not distributed or passed through fund investors.

Mutual funds invest in various kinds of securities. The various types of securities that a particular fund may invest in are mentioned in the funds prospectus, which explain the funds investments objective, its approach and the permitted investments. The objective of the investment describes the kind of income that the fund is looking for. For e.g., a "capital appreciation" fund generally looks to earn most of its returns from the increase in prices of the securities it holds rather than from a dividend or the interest income. The approach of the investment describes the criteria that the fund manager may have used to select the investments for the fund.

The investment portfolio of a mutual funds investment is continuously monitored by the funds portfolio manager or managers who are either employed by the funds manager or the sponsor.

Advantages of Mutual funds are:

1) Increase in diversification.

2) Liquidity on a daily basis.

3) Professional investment management.

4) Capacity to participate in investments that may be available only for larger investors.

5) Convenience as well as service.

6) Government oversight.

7) Easier comparison

like its advantages, the Mutual funds have disadvantages too. Here are some of them:

1) High fees.
2) Less control over timing of recognition of gains.
3) Much lesser predictable income.
4) No opportunity for customization.

There are different types of Mutual funds as well. Here are some of them.

Open-end funds

In open-end mutual funds, one must be willing to buy back their shares from investors at the end of every business day at the net asset value that is calculated for that day. Most of the open-end funds also sell shares to the public on every business day. These shares are also priced at a particular net asset value. A professional investment manager will oversee the portfolio, while buying or selling securities whichever is appropriate. The total investment in the funds will be variably based on share buying, share redemptions and fluctuation in the market variation. There are also no legal limits on the number of shares that can be issued.

Close-end funds
Close-end funds generally issue shares to the public just once, when they are created via an initial public offering. These shares are then listed for trading on a stock exchange. Investors, who dont wish any longer to invest in the funds, cannot sell their shares back to the funds. Instead, they must sell their shares to another investor in the market as the price they may receive may be hugely different from its net asset value. It may be at a premium to net asset value (higher than the net asset value) or more commonly at a lesser to net asset value (lower than the net asset value). A professional investment manager will oversee the portfolio, in buying or selling securities whichever is appropriate.

Unit Investment Trusts
UIT or Unit Investment Trusts issue shares to the public just once when they are created. The investors in turn can cash in on the shares directly with the fund or they may also sell their shares in the market. UITs do not have any professional investment managers. Their portfolio of securities is established by the creation of the UITs and does not undergo any changes. UITs in general have a limited life span, which is limited at their creation.

  • MF News
  • IPO News

Ideas for Profit | HDFC AMC posts strong performance in Q3, should investors buy? NULL
Wed, 22 Jan 2020 09:31:05 +0530


Mutual funds add 68 lakh folios in 2019 However, the pace of growth in folio numbers dropped in 2019 as compared to preceding three years. Industry experts attributed the trend to decline in investors account in debt oriented schemes as they were spooked by credit events in fixed income market.
Tue, 21 Jan 2020 15:14:07 +0530


Equity MF inflows in December back in shape, SIPs do all the talking The gradual shift of household savings away from physical to financial assets and the increasing share of MFs in part explain the stellar AUM growth
Thu, 09 Jan 2020 17:41:18 +0530


Ideas for Profit | Will the rally in HDFC AMC and Reliance Nippon continue in 2020? NULL
Tue, 31 Dec 2019 09:13:32 +0530


ITI sets price band at Rs 72-77 per share for Rs 1,400cr FPO The funds raised through FPO would be utilised for funding its working capital requirements as well as repayment of existing debt.
Wed, 22 Jan 2020 19:43:40 +0530


ITI follow-on public offer opens on Jan 24, may raise Rs 1,600 cr The company in its BSE filing on January 19 said the meeting of the board of directors of the company is scheduled on January 22 to consider and approve price band for FPO.
Mon, 20 Jan 2020 15:36:50 +0530


Prince Pipes IPO subscribed 2.21 times on final day as QIB, retail support Promoters will reduced their stake by selling shares through an offer for sale and intend to use the IPO proceeds towards repayment of outstanding bonds issued by Express Infra Projects
Fri, 20 Dec 2019 11:09:54 +0530


UTI AMC files IPO papers with SEBI, 5 shareholders to mop up over Rs 3,000 cr via OFS SBI, LIC, Punjab National Bank and Bank of Baroda each hold 18.5 percent stake in the UTI AMC. The remaining stake is held by US company T Rowe Price.
Thu, 19 Dec 2019 19:06:27 +0530


Subscribe to Prince Pipes and Fittings: Hem Securities Hem Securities has come out with its report on Prince Pipes and Fittings. The research firm has recommended to "Subscribe#39;#39; the IPO in its research report as on December 17, 2019
Thu, 19 Dec 2019 13:03:04 +0530


Subscribe to Prince Pipes and Fittings: Geojit Geojit has come out with its report on Prince Pipes and Fittings. The research firm has recommended to "Subscribe#39;#39; the IPO in its research report as on December 17, 2019
Thu, 19 Dec 2019 13:02:21 +0530


Subscribe to Prince Pipes and Fittings: Choice Equity Broking Choice Equity Broking has come out with its report on Prince Pipes and Fittings. The research firm has recommended to "Subscribe#39;#39; the IPO in its research report as on December 18, 2019
Thu, 19 Dec 2019 13:02:19 +0530


Avoid Prince Pipes and Fittings: Anand Rathi Anand Rathi has come out with its report on Prince Pipes and Fittings. The research firm has recommended to "Subscribe#39;#39; the IPO in its research report as on December 17, 2019
Thu, 19 Dec 2019 13:02:16 +0530


Prince Pipes IPO Day 2: Subscription at 74%, retail fully booked Choice Broking feels on valuation front, based on the higher price band, Prince Pipes is demanding a P/E multiple of 23.5x (to its restated FY19 EPS of Rs 7.6), which is at a marginal discount to peer average of 25.7x.
Thu, 19 Dec 2019 12:42:49 +0530


UTI AMC may file IPO papers this week, offer size could be Rs 3,800-4,800 crore The business channel learnt from sources that SBI, LIC and BoB may sell maximum 1.05 crore shares each while Punjab National Bank and T Rowe Price may sold 38 lakh shares each through the issue.
Thu, 19 Dec 2019 11:56:55 +0530


Rossari Biotech files IPO papers, looks to raise Rs 700 crore Sources told Moneycontrol that the company aims to raise around Rs 700 crore through the share sale.
Wed, 18 Dec 2019 18:44:46 +0530


Prince Pipes and Fittings IPO subscribed 28% so far on Day 1 The leading polymer pipes and fittings manufacturer has already garnered Rs 150 crore from anchor investors on December 17, ahead of its initial public offering.
Wed, 18 Dec 2019 12:07:18 +0530


Prince Pipes mops up Rs 150 cr from anchor investors ahead of IPO SBI Oman, Aditya Birla MF, SBI Life Insurance, HDFC Life Insurance etc participated in the anchor investor bidding.
Wed, 18 Dec 2019 11:10:33 +0530


Prince Pipes IPO: What should investors do? NULL
Wed, 18 Dec 2019 09:07:29 +0530


Prince Pipes IPO opens on December 18; 10 things to know The issue consists of fresh issue of Rs 250 crore and offer for sale of Rs 250 crore.
Tue, 17 Dec 2019 09:08:24 +0530

Schedule A Meeting With Us
Customer :
Need :
Name :
City :
E-mail :
Mobile :
Area :
Message :