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MUTUAL FUND

Mutual Funds as an investment option comes with numerous advantages
Mutual Fund

What is a mutual fund?

Put simply, a mutual fund is a pool of money provided by individual investors, companies, and other organizations. A fund manager is hired to invest the cash the investors have contributed. The goal of the manager depends on the type of fund; a fixed-income fund manager, for example, would strive to provide the highest yield at the lowest risk. A long-term growth manager, on the other hand, should attempt to beat the Dow Jones Industrial Average or the S&P 500 in a fiscal year (very few funds actually achieve this; to find out why, read Index Funds - The Dumb Money Almost Always Wins).

Mutual funds are divided along four lines: closed-end and open-ended funds; the latter is subdivided into load and no load

Closed-End Funds

This type of fund has a set number of shares issued to the public through an initial public offering. These shares trade on the open market; this, combined with the fact that a closed-end fund does not redeem or issue new shares like a normal mutual fund, subjects the fund shares to the laws of supply and demand. As a result, shares of closed-end funds normally trade at a discount to net asset value.

Open-End Funds

A majority of mutual funds are open-ended. In simple terms, this means that the fund does not have a set number of shares. Instead, the fund will issue new shares to an investor based upon the current net asset value and redeem the shares when the investor decides to sell. Open-end funds always reflect the net asset value of the fund’s underlying investments because shares are created and destroyed as necessary.

Load vs. No Load

A load, in mutual fund speak, is a sales commission. If a fund charges a load, the investor will pay the sales commission on top of the net asset value of the fund’s shares. No load funds tend to generate higher returns for investors due to the lower expenses associated with ownership.

Prevent Unauthorised transactions in your Trading/Demat Account. Update your mobile numbers/email IDs with your stock brokers/DP. Receive information of your transactions directly from Exchanges/Depositories on your mobile/email at the end of the day. No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account......Issued in the interest of investors. SEBI Circular - Investor Grievance Redress Mechanism - New Policy Measures. Kindly refer at Policies.

KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.

No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account

REGISTRATION NOS: SEBI Registration No: INZ000160834 (BSE-3233 | NSE-07141| MCX-56475) CDSL IN-DP-CDSL-414-2007. AMFI-Registered Mutual Fund Distributor: B.N.Rathi Securities Ltd - ARN-77516: (B.N.Rathi is just acting as distributor. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism.) CIN: L65993TG1985PLC005838
In case of member having a website, member has created awareness amongst clients / investors with regard to procedure of pledge/ re-pledge of securities and displayed the guidelines on the homepage of their respective websites at a prominent place as required in Exchange circular ref no. NSE/INSP/45565 dated Sep 02,2020 Trading members had displayed the set of standard documents/policies on their own website for information.

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