1 Lakh to 1 Crore by Mutual Fund | Why Invest In Mutual Fund (1)

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1 Lakh to 1 Crore by Mutual Fund
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About Us

• At Dhanashri, we've always been partial to
  independent thinkers.
• It takes courage to have faith in your own
  convictions and question conventional wisdom,
  especially when it's your own money at stake.
• That's why we treat every client with the utmost
  respect, regardless of their experience level.
• We're committed to providing traders and
  investors like you with the cutting edge tools,
  research and customer support you need. So you're
  free to pursue your investment goals the way YOU
  want.

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What is Mutual Funds?

• A mutual fund is a professionally
  managed investment fund that pools money from
  many investors to purchase securities.
• Mutual funds have advantages and disadvantages
  compared to direct investing in individual
  securities.
• The primary advantages of mutual funds are that
  they provide a higher level of diversification,
  they provide liquidity, and they are managed by
  professional investors.
• On the negative side, investors in a mutual fund
  must pay various fees and expenses.

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Mutual Funds Today

1. United States 18.9 trillion
2. Luxembourg 3.9 trillion
3. Ireland 2.2 trillion
4. Germany 1.9 trillion
5. France 1.9 trillion
6. Australia 1.6 trillion
7. United Kingdom 1.5 trillion
8. Japan 1.5 trillion
9. China 1.3 trillion
10. Brazil 1.1 trillion

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Top Performing Mutual Funds In India
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Category In Mutual Funds

• Large Cap-oriented Equity funds
• Diversified Equity funds
• Small and Mid-cap Equity funds
• Thematic - Infrastructure funds
• Equity Linked Savings Scheme (ELSS)
• Index funds
• Balanced funds
• Monthly Income Plan - Aggressive
• Long Term Gilt funds
• Income funds
• Short Term Income Funds
• Credit Opportunities Funds
• Ultra Short-term Debt funds
• Liquid funds

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Classification of Funds

1. Money Market Funds
2. Bond funds
3. Stock funds
4. Hybrid funds
5. Other funds

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Expenses

1. Management fee
2. Distribution charges
3. Securities transaction fees incurred by the fund
4. Shareholder transaction fees
5. Fund services charges
6. Expense ratio
7. No-load fund
8. Controversy regarding fees and expenses

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Advantages of Investing In Mutual Funds

1. Increased diversification A fund diversifies
   holding many securities this diversification decr
   eases risk.
2. Daily liquidity Shareholders of open-end funds
   and unit investment trusts may sell their
   holdings back to the fund at regular intervals at
   a price equal to the net asset value of the
   fund's holdings. Most funds allow investors to
   redeem in this way at the close of every trading
   day.
3. Professional investment management Open-and
   closed-end funds hire portfolio managers to
   supervise the fund's investments.
4. Ability to participate in investments that may be
   available only to larger investors. For example,
   individual investors often find it difficult to
   invest directly in foreign markets.
5. Service and convenience Funds often provide
   services such as check writing.
6. Government oversight Mutual funds are regulated
   by a governmental body
7. Transparency and ease of comparison All mutual
   funds are required to report the same information
   to investors, which makes them easier to compare

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Points to Consider before making Investment in
Mutual Funds

• You should be absolutely clear about time
  horizon expected return and investment objective
  before making an investment. You should build
  your mutual fund portfolio based on your
  financial goals.
• It is not necessary to invest in multiple mutual
  funds. Invest in few mutual funds based on your
  goal. It is not necessary to invest in each
  category mutual funds to build your portfolio.
• Always select SIP route for investment rather
  than doing lump sum investment. Invest in mutual
  funds for the long-term at least 3 years or
  above. If you are a risk adverse investor you can
  start building your portfolio by investing in
  debt or balance funds.
• Never invest in mutual funds based on tips.
  Carry out proper analysis and research before
  making an investment. If you are unable to
  identify mutual fund take advice from expert or
  CFP.

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Points to Consider before making Investment in
Mutual Funds

• Carry out assessment and balance your mutual
  fund portfolio at regular interval. Consider STP
  (Systematic Transfer Plan) for switching from one
  mutual fund to other.
• If your mutual fund portfolio is generating
  negative returns, do not panic. Dont redeem or
  Stop SIPs. Avoid taking any decision based on
  short-term market movements. Continue your SIPs
  for the longer period.
• Prefer direct mutual funds scheme. Always invest
  in Growth based mutual funds over dividend based
  mutual funds. Stay away from New Fund offers
  (NFOs).
• Please Remember Mutual Funds Investments are
  subject to market risks. Please read the offer
  document carefully before investing.

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