Mutual Fund Indro duct
1 Mutual Fund is a type of Security and Who the regulatory for Mutual fund
SEBI (securities exchange board of India) body for all mutual funds must get registered with SEBI
2 What are benefits of investing in mutual fund
Small Investing in small investing use can the benefits of returns
Professional fund many; pool of money collected by a mutual fund and pick good investment opportunity
small investing = in small investing use can invest our money in mutual fund and reap with the benefits of returns
spreading risk = investment our money in different stock or bonds is knows as spreading risk
transparency = mutual fund provides all information of securities related to the inventors
choice = mutual fund offers a wide variety of securities to choose from according to investor risk return
regulations = all mutual funds are registered with Sebi and they function within the provisions of strict regulations designed to protect the interest of the investor
3 What is NAV?
Net Asset Value is per unit is simple the net asset value of the divided by the member of enlist outstanding
4 Are there any risks involved in investing in mutual funds?
Yes, Mutual Funds involved risk Mutual Fund do not provided assumed returns In a Mutual fund use invest shares debentures bonds etc. so these all securities involved risk so Mutual Fund also have risk in it
5 Type of risk in Mutual funds?
.Markets Risk
.Non-Markets Risk
. Interest Rate Risk
.Credit Risk
. Market Risk
When the risk is present in the own the Market al the stock bond market for on account of overall economic factors the value stock or one holding in the fund’s portfolio can drop thereby importing the fund performance
Non Markets
When about a particular company a bad a comes so that negatively affect fund holding knows as non market funds
Interest rate risk
pond prices and interest rates more in ponderations bond price fall and interest rate risk and this decline in underlaying securities affects the fund negatively
