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WHAT IS MUTUAL FUND?:
A mutual fund is an investment that allows a group of investors to pool their money and hire a portfolio manager. The manager invests this money (the fund’s assets) in stocks, bonds or other investment securities (or a combination of stocks, bonds and securities). The fund manager then continues to buy and sell stocks and securities according to the style dictated by the fund’s prospectus. |
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TOP 10 REASONS TO BUY MUTUAL FUND
There are many reasons to buy a mutual fund. While there are a plethora of investment options (individual stocks, ETFs and close-end funds, to name a few) a mutual fund can offer a simple, efficient way to invest for retirement, education or other financial goals. |
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Mutual Fund Investment: Mutual fund in general is getting a pool of money and investing in shares or stocks. The profit and non profit will be shared equally between the investors and share holding participants. Navia offers daily net asset value, new fund offers and quality inputs from MF Desk. |
| Growth of Mutual Fund |
| Fund Name |
3 Month% |
6 Month% |
1 Year% |
| Principal Emerging Fund |
11.3 |
43.5 |
155.5 |
| ICICI Pru Discovery Fund |
8.9 |
48 |
141.7 |
| Birla SL Divident |
7.9 |
33.7 |
93.1 |
| IDFC Premier Equity |
10.4 |
34 |
104.5 |
| HDFC Equity G |
10.7 |
34 |
111.2 |
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| Liquidity |
Investors can sell their mutual fund units on any business day and receive the current market value on their investments within a short time period (normally three- to five-days). |
| Affordability |
The minimum initial investment for a mutual fund is fairly low for most funds (as low as Rs500 for some schemes). |
| Flexibility |
You can pick from conservative, blue-chip sectoral funds, funds that aim to provide income with modest growth or those that take big risks in the search for returns. You can even buy balanced funds, or those that combine stocks and bonds in the samefund. |
| Convenience |
Most private sector funds provide you the convenience of periodic purchase plans, automatic withdrawal plans and the automatic reinvestment of interest and dividends.
Mutual funds also provide you with detailed reports and statements that make record-keeping simple. You can easily monitor the performance of your mutual funds simply by reviewing the business pages of most newspapers or by using our Mutual Funds section in Investor’s Mall. |
| Tax Benefit |
1) 100% Income Tax exemption on all Mutual Fund dividends
2) Equity Funds - Short term capital gains is taxed at 15%. Long term capital gains is not applicable.
Debt Funds - Short term capital gains is taxed as per the slab rates applicable to you. Long term capital gains tax to be lower of -
10% on the capital gains without factoring indexation benefit and
20% on the capital gains after factoring indexation benefit.
3) Open-end funds with equity exposure of more than 65% (Revised from 50% to 65% in Budget 2006) are exempt from the payment of dividend tax for a period of 3 years from 1999-2000. |
| Objectives of Mutual Fund |
| Fund Objective |
What the fund will do |
| Equity (Growth) |
Only in stocks. |
| Debt (Income) |
Only in fixed income securities. |
| Money Market |
In short-term mony market instruments including govt securiteis |
| Balanced |
Partly in stock and partly in fixed-income security. |
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| Call for Investment |
Call Investment Advisor at Chennai.
 This service only available at Chennai. |
