Why Mutual Funds ?

       WHY MUTUAL FUNDS ?

           What is Mutual Funds?

• Mutual Funds is  basically a tool provided  by the Asset Management Companies (AMC), also called as Fund House, through which an Investors can invest in Equity market or a Debt Market, separately or together as the case may be. 
• There are several AMC's present in India like ICICI, HDFC, Aditya Birla, Kotak Mahindra,etc.

          How it Works?

• Every Investor pools their money with AMC's, where the AMC appoints an expert which is also called as Fund Manager having a past experience of the security market;  for managing the funds of the investors.
• Fund Manager according to his expertise and the predefined goals of the investors park the Investments in the appropriate securities.
• The Invested securities then generates returns after a certain period of time on the pooled money, from which the AMC after deducting the fund management charges i.e. Expense ratio returns back to the Investor account.

          Benefits of Mutual Funds

• Since Mutual Funds, allows investment in many securities together, so providing the benefit of diversification.
• As the amount of investors is managed by the Expert, thus provides the safety and expertise during the investments.
• Overall expense ratio as compared to direct investment is less, since managing huge funds.
•  Since the investment is in diversification mode , hence less risk high returns.
• All the fund houses is ultimately governed by SEBI, hence transparency in investments in ensured.

       By,

       Team PalanKarta

       India

       For any query or concerns on the same, you can reach out to us at contactus@palankarta.com.

       Follow us on You Tube for update https://youtu.be/dpXXBTGjWgk