Mutual Fund Distributor

Features of Mutual Fund

The following are the inherent characteristics of Mutual Funds.

• Experts Hold Money

  Companies that specialise in asset management and are specialists in the field of investing appoint fund managers.

• Smaller Units

  In order to raise money from investors, mutual funds divide their resources into smaller portions. These components are known as shares or units of mutual funds. To understand the diversification of MF, you can speak to a Mutual fund distributor.

• Pre-announcement

  MF houses provide prospectuses, which include information on the investment goals, types of schemes, level of risk, etc. This is a common practice before making any fund live for the investors.

• Custodian

  The organisation and security of these securities are handled by a custodian.

• Goals of Investors

  Since there are many investors and they all have distinct investment goals, MF sometimes raise money by executing schemes with various investment goals and after investing that money in line with the investors’ goals.

• Equal Output Distribution

  Mutual fund investors share in the gain, loss, or expenditures that occur from their investments in proportion to the number of shares they have acquired.

• Forming a Circle of Investors with a Common Objective

  All investors who invest in MF schemes of a particular type have roughly the same financial objectives.

• Various Values

  At MFs, there are just two categories of values. One at current prices and one at the time of the NAVI scheme’s introduction. When an investor purchases units, they are available at specific prices; however, after the units are placed on the market, they become available at NAV.

• Asset management companies are government regulated

  Under the Companies Act, corporations are created to manage the money and make other procedures. In India, SEBI maintains a registration of all mutual funds (Securities and Exchange Board of India).