- When one invests in mutual funds, one is likely to diversify their investments into different asset classes. This diversification can spread risk evenly across an investor’s portfolio.
- Mutual fund investments are managed by teams of expert fund managers, who actively manage the performance of the mutual fund. Their objective is to achieve potential returns that are commensurate with the risk level of a mutual fund scheme. Returns cannot be guaranteed due to the volatile nature of the markets
- All mutual fund houses are registered and regulated with the Securities and Exchange Board of India (SEBI) and are mandated to disclose all information regarding various mutual fund schemes offered by them to the public. This makes mutual funds easier to understand and allows investors to analyze them before investing.
- Some categories of mutual funds may provide some liquidity that consumers may find appropriate, while others offer the potential for capital growth.
- Some mutual fund schemes also offer tax exemptions and benefits.
- Mutual funds can allow investors to enter (buy) and exit (redeeme) a scheme at any time, subject to exit load (if any) and tax implications.
- Investing through mutual funds can be considered affordable, such as sip (Systematic Investment Plan), a method of mutual fund investment, allows investors to start investing with an amount as low as INR 100.
When it comes to choosing mutual fund investments, it can help investors to consider the following factors:
- Financial goals (both short term, medium term and long term in nature)
- Risk taking ability (willingness and ability to take risks)
- Time horizon (time required to achieve your goals)
Once an investor identifies and understands the above factors, they can combine them with a mutual fund scheme that suits them. Investors can also choose to seek the advice of a financial advisor for making prudent investment decisions.
An investor education initiative.
meeting
www.icicipruamc.com/note To know more about the process to fulfill the Know Your Customer (KYC) requirement for investing in mutual funds. Investors should deal only with registered mutual funds, details of which can be verified on SEBI website
www.sebi.gov.in/intermediaries.html, For any queries, grievances and grievance redressal, investors may contact the AMC and/or Investor Relations Officers. In addition, investors can also file complaints on
https://scores.gov.in If they are dissatisfied with the proposals made by the AMC. The SCORES portal allows you to register your complaint with SEBI online and view its status later.
Mutual fund investments are subject to market risks, read all the scheme related documents carefully.