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FAQs (Frequently Asked Questions)

Mutual Funds Life Insurance Health Insurance
New Investor Existing Investor Taxation NRI's KYC
A Mutual Fund is an investment tool that allows investors access to a well-diversified portfolio of equities, bonds and other securities, as per the objective of the scheme. Each investor participates in the gain or loss of the fund. Units are issued and can be redeemed as needed. The fund's Net Asset Value (NAV) is determined each day.
Mutual Funds are financial intermediaries registered and authorized by SEBI(Securities and Exchange Board of India) to carry on the mutual fund business in India. They are companies set up to receive your money, and then having received it, make investments with the money via an AMC(Asset Management Company).

It is an ideal tool for people who want to invest but don't want to be bothered with complexity of choosing the right shares or bonds for investment. A mutual fund manager proceeds to buy a number of stocks from various markets and industries. Depending on the amount you invest, you own part of the overall fund.
Mutual Fund invests investor’s money in shares/bonds/money market instruments depending upon the objective of the scheme. An Income scheme may invest the money in bonds and money market instruments whereas a growth oriented scheme may invest in stocks of promising companies.
Primarily, there are two kinds of funds. Equity funds and Debt Funds.

Equity Funds are high risk funds which tend to provide growth to investments by investing in stocks of companies, over long period of time say, 5-10 years. Debt Funds invest in bonds and money market instruments and try to preserve the capital and generate moderate income over shorter periods of time.

Both Equity and Debt funds could further be classified into sub categories depending upon the objective of the fund.
All mutual funds do not guarantee capital safety, hence risky in nature. However, the degree of risk varies in different kinds of mutual funds. An Equity fund may be the most risky and volatile fund whereas a Liquid Fund may be a low risk and least volatile fund.
Mutual Fund investment is open to Resident / Non-Resident Individual, HUF (Hindu Undivided Family), Companies/Body Corporate, Partnership Firms, Trusts and Cooperative Societies.
Mutual Funds are simple, low cost, liquid and transparent investment options.

There are various kinds of mutual funds to cater different needs of investors. Mutual funds provide investment options for short duration investment as well as for long term, from high risk-high return to low risk-moderate return.

Mutual funds are tax efficient in nature. Nomination and Joint Holding in mutual funds provides easy wealth transfer from one individual to another in case of unforeseen circumstances.
Following documents are required to be submitted by the investor to subscribe in any mutual fund scheme:

For All Investors:
* Duly filled in Common Application Form (To be downloaded for the desired scheme)
* Any of the below Payment instrument to be issued in favor of the scheme in which the investment needs to be made
a. Local cheque
b. Payable at par cheque
c.Demand Draft payable locally

Additional Documents

2. Resident / Non-Resident Individual Investor
*PAN Copy
*KYC Acknowledgement Copy irrespective of the investment amount

3. HUF (Hindu Undivided Family)
*PAN Copy of the HUF
*KYC Acknowledgement Copy irrespective of the investment amount
*HUF Stamp required on the Application Form

4. Companies/Body Corporate
*Certified copy of the Board Resolution authorizing investments/ disinvestments in Mutual Funds Schemes, certified by the Company Secretary / Authorized Signatory
*List containing names and signatures of the signatories, authorized as per the above Board Resolution, duly attested by the bankers/ Company Secretary on the Company's letterhead
*Copy of the Memorandum and Articles of Association of the Company duly attested by the Company Secretary or any other authorized signatory
*Other relevant documents governing the statute (in case of Body Corporate not covered under the Companies Act, 1956)
*PAN Copy
*KYC Acknowledgement Copy irrespective of the investment amount

5. Partnership Firms
*Copy of the Partnership Deed duly attested by any of the partners
*Signatures of the partners attested by their bankers
*Copy of the Resolution, signed by the partners, authorizing investments/ disinvestments in the Fund and corresponding operational procedures
*PAN Copy
*KYC Acknowledgement Copy irrespective of the investment amount

6. Trusts
*Copy of the Trust Deed attested by the Trustees/ Secretary
*Copy of the Resolution passed by the Trustees authorizing investments/ disinvestments in Mutual Fund Schemes, duly certified by the Trustees/ Secretary
*List of Trustees and signatures, authorized as per the above resolution, duly attested by the bankers/ Secretary of the Trust on the Trust's letterhead
*PAN Copy
*KYC Acknowledgement Copy irrespective of the investment amount

7. Co-operative Societies
*Copy of the Registration Certificate attested by the Secretary/ office bearer of the society
*Copy of the Resolution authorizing investments/ disinvestments in the Fund and corresponding operational procedures, duly attested by the Secretary/ office bearer of the society
*List of members and their signatures, attested by the bankers
*PAN Copy
*KYC Acknowledgement Copy irrespective of the investment amount
Choosing the right mutual fund is dependent upon the goal you wish to achieve as an investor. If you are looking for growth over a long period of more than 5 years and ready to take risk on capital, Equity and Balanced Funds are the right vehicle. If you are looking for regular income with low risk and volatility, then Debt Funds can be considered.

You can use the InvestGuru Guide’s two step process to identify the right mutual fund for your financial goal. InvestGuru Guide compares various mutual funds for every specific goal and suggests the most attractive schemes available in an easy format.

You may also talk to us on 09910423232 for a personalised advice.
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Risk Factor : All investments in mutual funds are subject to market risks and the NAV of the schemes may go up or down depending upon the factors and forces affecting the securities market and there can be no assurance that the fund's objectives will be achieved. Past performance of the Fund does not indicate the future performance of the Schemes of the Fund.
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