In August, assets under management (AUM) for equity schemes hit ₹30 trillion, driven by strong inflows and a market rally. The mutual fund industry continues to attract investors looking for a diversified way to invest in the stock market. But what exactly is a mutual fund?
An equity fund is a type of investment fund that pools money from investors to trade primarily a portfolio of stocks, also known as equity securities. This allows individual investors to access a diversified portfolio of stocks without having to research and pick individual companies themselves.
Want the ease of stock trading, but diversification benefits of mutual funds? ETFs combine the best of both. ETFs, or exchange-traded funds, are similar to mutual funds but trade on stock exchanges just like individual stocks. They offer diversification and flexibility to investors.
A fund of funds (FOF) pools investment capital into a wider portfolio of several investment funds instead of directly investing in single securities. This strategy allows investors to achieve even greater diversification across different asset classes and investment styles.
Exiting a fund means that you are exiting the entire holdings from that particular fund and probably putting it into your bank account. It's essential to understand the implications of exiting a fund, including any potential fees or taxes that may apply.
There is a common notion that a mutual fund with a lower NAV is cheaper and offers higher returns. We explore the myth in this article, discussing how NAV is just one factor to consider when evaluating a mutual fund's performance.
An investment fund allows investors to gain exposure to a diversified basket of securities at a low cost. Learn the full meaning here, including the different types of investment funds available and how they can benefit your portfolio.
Over the past two years, several mid- and smallcap schemes have been launched by asset management companies to capitalize on the bull run in the market. These schemes provide investors with opportunities to invest in smaller companies with growth potential.
A style box represents a mutual fund's characteristics. The financial services research provider Morningstar, Inc. popularized the tool by placing it alongside mutual fund performance data. The style box helps investors understand a fund's investment style, asset allocation, and risk profile.
