Mutual Fund Speech

The three mutual funds I would like to talk about are stock mutual funds, balanced mutual funds, bond funds. A mutual fund is a company that buys ordinary shares or bonds by combining investors' funds and pooling them. Ideally, the size and efficiency of the fund, combined with experienced management, offers investors diversification, expert stock and bond selection, low cost and convenience advantages. (Mutual, 2001). Investors use their funds for a common purpose of earning more money through mutual funds.

Investment trusts are pools of funds. When many individuals (investors) explore common causes and targets and gather to pool funds, it is called an investment trust. All investment trusts should have investment objectives. The asset management company or AMC is designated to manage these resources. AMC then chooses "Cash Manager". Trustees of investment trusts will oversee fund activities. AMC will use your funds for specific projects with specific goals such as capital appreciation and then invest your funds on specific stocks and bonds based on this goal.

A mutual fund is a combination of stocks, bonds, or both. Such collections are sponsored and managed by Asset Management Company (AMC) such as HDFC Mutual Fund and ICICI Asset Management. These companies collect funds from the public and invest their amounts in the sponsorship collection based on contractual terms agreed upon by individuals in making investment decisions. Expense ratio: AMC generates various expenses such as marketing and distribution expenses, administrative expenses, research expenses. All of these expenses are brought together and handed over to investors in the form of cost rates. The expense rate will tell you the amount you should pay AMC to manage your funds in a percentage each year. For example, if an investor invests 1000 rupees at a rate of 2% on investment trusts, he / she will pay 200 rupees per year to manage the investment.