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> What is Mutual Funds ? |
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| “Mutual fund is a pool of assets of scattered
investors. These assets are invested in a diversified
portfolio of equity (shares / stocks) and debt (bonds
/ fixed income) instruments to earn return for the investor” |
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| Mutual funds have two return streams |
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Capital gains |
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Dividends (mostly annual) |
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| Types
of Mutual Funds |
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Close end funds: |
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More like the stocks of a listed
company |
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Can be bought and sold in the same day through
broker/member of the stock exchange |
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Open end fund: |
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Registered as trusts |
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Units can be bought or sold directly from the
management company |
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| Classification
of Open end Mutual Funds |
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Money Market Fund |
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Income Fund |
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Equity Fund |
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Index Tracker Fund |
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Sector Fund |
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Islamic Fund |
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Balance Fund |
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Fund of Funds |
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Asset Allocation Fund |
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Capital Guaranteed Funds |
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what
is mutual fund ?
