Mutual Fund Services

WHAT IS MUTUAL FUND?

A mutual fund is a professionally-managed investment scheme, usually run by an asset management company that brings together a group of people and invests their money in stocks, bonds and other securities.

As an investor, you can buy mutual fund 'units', which basically represent your share of holdings in a particular scheme. These units can be purchased or redeemed as needed at the fund's current net asset value (NAV). These NAVs keep fluctuating, according to the fund's holdings. So, each investor participates proportionally in the gain or loss of the fund.

 As an investor, you can buy mutual fund 'units', which basically represent your share of holdings in a particular scheme. 

 These units can be purchased or redeemed as needed at the fund's current net asset value (NAV). These NAVs keep fluctuating, according to the fund's holdings. So, each investor participates proportionally in the gain or loss of the fund.

WHAT ARE THE BENEFITS OF INVESTING IN MUTUAL FUNDS?

The following are the advantages of investing in mutual funds:

Tax Benefits: Some mutual fund schemes offer you tax deductions under particular sections of Income Tax Act. In addition, your returns from mutual funds (dividends and capital appreciation) are also eligible for favourable tax treatment. 

Liquidity and Convenience: Investing and getting back your money is easy. Also, there is very little paper work, and it is very easy to track and monitor your investments.

Professional Management: Your money is managed by professionals who have the experience and resources to thoroughly analyse the economy and financial markets, and spot good opportunities.

Diversification: With smaller amounts, you can achieve a higher degree of diversification and reduce your risk.

WHAT IS THE PROCEDURE TO INVEST IN MUTUAL FUNDS?

The normal procedure is to fill-up the BSE MFSTAR application form with C-KYC submit it along with a cheque for the amount of investment. Cheques, NEFT & RTGS Payment are allowed .The client would submit the application form with the cheque in the favour of “INDIAN CLEARING CORPORATION LIMITED. The mutual fund company would issue an Account Statement with 4 working days from the date of investment to the client.