Mutual fund and Systematic Investment Plan

It is about the Mutual fund and SIP

1. Mut ual Funds Sahi hai!

2. What are Mutual funds? A mutual fund is a pool of money managed by a professional Fund Manager. It is a trust that collects money from a number of investors who share a common investment objective and invests the same in equities, bonds, money market instruments and other securities.

3. C lassification Debt funds I t invests in fi x ed income instruments like Corporate & govt. bonds. Equity funds I t invest s in stock market in diversified sectors which provides capital appreciation over long term Hybrid funds It is a blend of both Debt & Equity funds

4. A dvantages of MFs Professional Mgmt. P rofessional fund managers manage you r money. D iversification E ach unit purchased is made up of many different sectors. Flexiblity A l lows you to purchase as much & as little, in varied schemes. liquidity C an b e sold any time easily.

5. What is C ompound interest ? T he interest that is gener a ted on the combination of the princip al amount &the accumulated interest from previous periods

6. I t is a d isciplined approach to investing allowing investors to build wealth by regularly investing a set of amount at regular intervals SIP ( Systematic Investment Plan )

7. Advantages of SIP D isciplined investing E ncourages regular investing F lexiblity S tart with small amounts and high liquidity C onv e nience Hass le free process due to function of auto-debit

8. W ays for inv e sting in MFs V ia physical M Fs application form V ia mobile applications or websites V ia AMFI registered MF d i strbutor

9. Why investment is essential ? 1200% S ensex rose by 1200% over past 20 years 5% I nflation rate of India is 5.28% 80% Price rise of essential goods increasd by 80% over 10 years 160% H ouse hold expences to increase by 160% over next 11 years