Concept & Benefits of Mutual Fund

1. http://elitewealth.in/mutual-funds

2. WhatisMutualFund A mutual fund is an investment vehicle that is made up of a pool of funds collected from many investors like you for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. http://elitewealth.in/mutual-funds

3. Concept of Mutual Fund http://elitewealth.in/mutual-funds

4. Benefits of investing in mutual funds Professional Management:Qualified professionals manage your money, but they are not alone. They have a research team that continuously analyses the performance and prospects of companies. They also select suitable investments to achieve the objectives of the scheme. It is a continuous process that takes time and expertise which will add value to your investment. Fund managers are in a better position to manage your investments and get higher returns. http://elitewealth.in/mutual-funds

5. Benefits of investing in mutual funds Diversification:The cliché, “don’t put all your eggs in one basket” really applies to the concept of intelligent investing. Diversification lowers your risk of loss by spreading your money across various industries and geographic regions. It is a rare occasion when all stocks decline at the same time and in the same proportion. Sector funds spread your investment across only one industry so they are less diversified and therefore generally more volatile. http://elitewealth.in/mutual-funds

6. Benefits of investing in mutual funds Affordability:As a small investor, you may find that it is not possible to buy shares of larger corporations. Mutual funds generally buy and sell securities in large volumes which allow investors to benefit from lower trading costs. The smallest investor can get started on mutual funds because of the minimal investment requirements. You can invest with a minimum of Rs.500 in a Systematic Investment Plan on a regular basis. http://elitewealth.in/mutual-funds

7. Benefits of investing in mutual funds Transparency:The performance of a mutual fund is reviewed by various publications and rating agencies, making it easy for investors to compare fund to another. As a unit holder, you are provided with regular updates, for example daily NAVs, as well as information on the fund’s holdings and the fund manager’s strategy. http://elitewealth.in/mutual-funds

8. Benefits of investing in mutual funds Rupee-cost Averaging:rupee-cost averaging, you invest a specific rupee amount at regular intervals regardless of the investment’s unit price. As a result, your money buys more units when the price is low and fewer units when the price is high, which can mean a lower average cost per unit over time. Rupee-cost averaging allows you to discipline yourself by investing every month or quarter rather than making sporadic investments. http://elitewealth.in/mutual-funds

9. Benefits of investing in mutual funds More Choice:Mutual funds offer a variety of schemes that will suit your needs over a lifetime. When you enter a new stage in your life, all you need to do is sit down with your financial advisor who will help you to rearrange your portfolio to suit your altered lifestyle http://elitewealth.in/mutual-funds

10. Types of mutual funds http://elitewealth.in/mutual-funds

11. What are the risks associated to mutual funds The level of risk in a mutual fund depends on what it invests in. Usually, the higher the potential returns, the higher the risk will be. For example, stocks are generally riskier than bonds, so an equity fund tends to be riskier than a fixed income fund. http://elitewealth.in/mutual-funds

12. What are close and open-ended schemes A closed-end fund has a fixed number of shares outstanding and operates for a fixed duration. An open-end fund is one that is available for subscription all through the year. The majority of mutual funds are open-end funds. Investors have the flexibility to buy or sell any part of their investment at any time at a price linked to the fund’s Net Asset Value. http://elitewealth.in/mutual-funds

13. What is ELSS ELSS is a type of diversified equity mutual fund which is qualified for tax exemption under section 80C of the Income Tax Act, and offers the twin-advantage of capital appreciation and tax benefits. It comes with a lock-in period of three years. http://elitewealth.in/mutual-funds

14. Mutual Fund- Which one to buy? http://elitewealth.in/mutual-funds

15. How To Chose a fund for Investing? Expense ratio: Denotes the annual expenses of the funds including the management fee and administrative cost. Sharpe Ratio: An indicator of whether an investment's return is due to smart investing decisions or a result of excess risk. Higher sharpe Ratio is better. Alpha Ratio:Measures risk relative to the market or benchmark index. For investors, the more positive an alpha is the better it is. R-squared:Measures the percentage of an Investment's movement that are attributable to movements in its benchmark index. A mutual fund should have a balance in R-square and ideally it should not be more than 90 and less than 80. http://elitewealth.in/mutual-funds

16. Elite Wealth Advisors Ltd DDA Shopping Complex, Mayur Vihar-1, Delhi-91 Contact Details: Phone: 01142445800/9650901058 Email:contact@elitestock.com Website:www.elitewealth.in For Invest in Mutual Fund visit us on http://elitewealth.in/contactus http://elitewealth.in/mutual-funds

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