Do you want to know how mutual funds work, how you can make money from mutual funds. Today in this post, we are sharing with you 10+ mutual funds PDF notes files, in which you will learn about following topics.
Mutual Funds PDF Notes Download
First Of All Lets Start With Basic Information about Mutual Funds.
What is mutual funds ?
It is a trust that pools together resources of investors to make a foray into investments in capital markets, thereby making investors part owners of the assets of mutual funds.
Savings and investments are perpetual and every individual would like to maximize the
returns on the investments. Mutual funds provide the leverage of earning higher returns
with little savings. This can be explained in the following manner; if an individual has
Rs.5000 as
savings, he may invest in few stocks and create a portfolio of his own, but his
returns would be limited to changes in the market value of the share and dividends from
the stocks.
He would be exposed to the risk of those stocks not performing well. Whereas
in case of mutual funds, with little investment, you get a share of larger portfolio and the
risk is diversified to lot many stocks in the portfolio.
As a matter of financial discipline, if I have Rs.1000 per month to invest in, I can invest in a fund every month through a Systematic Investment Plan (SIP)
So by investing in mutual funds you are not only putting your eggs in different baskets
but also overcoming the limitation of the quantum of investment in hand and you can do
away with the burden of managing you portfolio of your own as this is being ‘outsourced’ to a fund manager having expertise in the field.
How Mutual Funds Works ?
A mutual fund is an SEC-registered open-end investment company that pools money from many investors and invests the money in stocks, bonds, short-term money-market instruments, other securities or assets, or some combination of these investments.
The combined securities and assets the mutual fund owns are known as its portfolio, which is managed by an SEC-registered investment adviser.
Each mutual fund share represents an investor’s proportionate ownership of the mutual fund’s portfolio and the income the portfolio generates.
Investors in mutual funds buy their shares from, and sell/ redeem their shares to, the mutual funds themselves. Mutual fund shares are typically purchased from the fund directly or through investment professionals like brokers.
Mutual funds are required by law to price their shares each business day and they typically do so after the major U.S. exchanges close.
This price—the per-share value of the mutual fund’s assets minus its liabilities—is called the NAV or net asset value. Mutual funds must sell and redeem their shares at the NAV that is calculated after the investor places a purchase or redemption order.
This means that, when an investor places a purchase order for mutual fund shares during the day, the investor won’t know what the purchase price is until the next NAV is calculated.
10+ Mutual Funds PDF Download
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Conclusion :
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Aaplyala mutual fund madhe invest karayache asel tar krupaya RWHinvest@gmail.com was sampark kara. Amhala 15+ warshacha anubhav asun aapalyala madat karayala anand hoil