Mutual Funds |MBA in Business Analytics in Bangalore

Posted by Dr. Samiya Mubeen On 08/02/2022 10:45:34

A mutual fund is a collective investment vehicle that collects & pools money from a number of investors and invests the same in equities, bonds, government securities, and money market instruments.

The money collected in a mutual fund scheme is invested by professional fund managers in stocks and bonds etc. in line with a scheme’s investment objective. The income/gains generated from this collective investment scheme are distributed proportionately amongst the investors, after deducting applicable expenses and levies, by calculating a scheme’s “Net Asset Value” or NAV. In return, mutual funds charge a small fee.

In short, a mutual fund is a collective pool of money contributed by several investors and managed by a professional Fund Manager. MBA in Business Analytics in Bangalore

Mutual Funds in India are established in the form of a Trust under the Indian Trust Act, 1882, in accordance with SEBI (Mutual Funds) Regulations, 1996. IIBS Bangalore

The fees and expenses charged by the mutual funds to manage a scheme are regulated and are subject to the limits specified by SEBI.


One should avoid the temptation to review the fund's performance each time the market falls or jumps up significantly. For an actively-managed equity scheme, one must have patience and allow reasonable time - between 18 and 24 months - for the fund to generate returns in the portfolio. Top MBA college in Bangalore

When you invest in a mutual fund, you are pooling your money with many other investors. Mutual fund issues “Units” against the amount invested at the prevailing NAV. Returns from a mutual fund may include income distributions to investors out of dividends, interest, capital gains, or other income earned by the mutual fund. You can also have capital gains (or losses) if you sell the mutual fund units for more (or less) than the amount you invested.

Mutual funds are ideal for investors who –

  • lack the knowledge or skill/experience of investing in stock markets directly.
  • want to grow their wealth, but do not have the inclination or time to research the stock market.
  • I wish to invest only small amounts.


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