WAYS TO INVEST IN MUTUAL FUNDS - PowerPoint PPT Presentation

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WAYS TO INVEST IN MUTUAL FUNDS

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Know how to invest in mutual Funds and get maximum return on your small investment to achieve financial Independence – PowerPoint PPT presentation

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Updated: 10 April 2015
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Title: WAYS TO INVEST IN MUTUAL FUNDS


1
WAYS TO INVEST IN MUTUAL FUNDs
2
What is a Mutual Fund?
A Mutual Fund is a professionally managed trust
that pools the saving of a group of people and
invests them in stocks, bonds, money market
instruments and other securities. These investors
have a common financial goal and their funds are
invested across distinct asset classes basis the
funds investment objective. Each investor owns
a few shares that represent a portion of holdings
of the fund. The investments in mutual funds
are comparatively small amounts that give retail
investors the advantage of getting their money
controlled by finance professionals. Even if
they are a few thousand rupees of investments,
they are either actively managed by professional
fund managers or passively tracked by an index or
industry.
3
  • Money earned by investing in mutual funds can be
    classified in three ways
  • Income earned from dividends on stocks and
    interest on bonds. A fund pays out all the income
    it receives over the year to its owners.
  • On selling of securities that have increased in
    price, the fund has a capital gain. Most funds
    also pass the same in form of distribution.
  • If theres an increase in price of holdings which
    have not been sold so far by the fund managers,
    this increases the price of funds shares. You
    can then sell your share of mutual funds for a
    profit.
  • Out of these earnings, funds will usually give
    you a choice either to receive a cheque for
    distributions or to reinvest the earnings and get
    more shares.

4
What are the different ways of investing in
Mutual Funds?
  • Now when you plan to invest here are some of the
    different ways you can enquire or approach your
    investments in mutual funds
  • Asset Management Companies (AMCs)
  • Consult Agents or Brokers
  • Banks
  • Online Financial Portals

5
Asset Management Companies (AMCs)
  • Track a good AMC largely most of them have an
    option to invest online. You must first check if
    you have an account with the banks they have
    partnered with. Then all you have to do is
    download a form, fill and submit it with
    necessary documents. Once the folio is generated,
    you can easily invest online. Also, with other
    contact details like address, email address and
    telephone numbers also available on the website,
    you can also get in touch directly for
    assistance.

6
Consult Agents or Brokers
  • Typical approach of investing that has been an
    easy practice, where an agent turns up on your
    doorsteps when called. He will fulfill all
    necessary formalities, collect necessary
    documents from you, get signatures, compile them
    and submit the forms to a mutual fund company. In
    that case you pay some commission and the longer
    you stay invested, he earns more in that case.

7
Banks
  • There are number of banks are deals in mutual
    funds. A bank that you are associated with has
    your details and can lure your to invest in
    mutual funds, they are associated with. You just
    walk into your nearest branch and ask them if
    they are selling any mutual fund schemes.

8
Online Financial Portals
  • Online portals offer great convenience to invest
    in mutual funds online and are also amongst the
    cheapest mode of investment. Though these portals
    dont charge anything upfront, but they collect
    commission from mutual fund companies and will be
    adjusted to your NAV. Convenience of tracking
    your investment and having solutions to all your
    investment related queries at one place, makes it
    quite a lucrative option to opt for investing in
    mutual funds.

9
  • Learn how to invest in mutual funds and various
    benefits of investing in mutual fund from
    Reliance Mutual Fund.
  • Call us Toll Free No. 1800-300-11111 Tel No.
    022 30301111
  • Click to connect with us on our social
    profiles-
  • https//plus.google.com/Reliancemutualfunds-indi
    a/posts
  • https//www.youtube.com/user/RelianceMF2010/vide
    os
  • https//www.facebook.com/RelianceMutualFund
  • https//www.linkedin.com/company/reliance-mutual
    -fund

10
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