mutual funds introduction

  1. Importance of Personal Finance
    1. Personal finance: Why Is It Important?
    2. what is personal finance explained with example
    3. Compound Interest and Simple Interest Understanding Personal Finance Maths
    4. compounding effect Understanding Compounded Returns with Formulas and Examples
    5. value of money Exploring the Concept of Present and Future Value in Personal Finance
    6. Future Value of money Formula How to Calculate with Example
    7. Retirement Tips for How to Save, Plan, and Invest
    8. Inflation how it Impacts Your Retirement Income with formula and examples
    9. Diversifying Portfolio for a Secure Retirement example of Investing in Multiple Assets
    10. Retirement Corpus example Strategies and Assumptions for a Secure Future
    11. mutual funds introduction
    12. Asset Management Companies:Understanding Structure and Roles in Mutual Funds
    13. NAV Net Asset Value Understanding the Core Concept of Mutual Funds with example
    14. Net Asset Value in Mutual Funds Fair Division of Profits and Investor Returns
    15. Mutual Fund Fact Sheet A Comprehensive Guide Unlocking the Secrets of MF Factsheets
    16. types of mutual funds schemes as per SEBI October 2017 Circular
    17. MultiCap Funds
    18. Focused Funds
    19. Dividend yield funds
    20. ELSS Funds
    21. debt fund A Comprehensive Guide to Understanding What are Debt Funds in india
    22. liquid mutual fund
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    24. liquidity risk in mutual funds
    25. Banking and PSU Debt Fund
    26. Credit Risk Funds
    27. GILT Funds
    28. Bond Financial Meaning With Examples and 5 types of bonds explained
    29. YTM Yield to Maturity definition and how to calculate
    30. Accrued Interest Definition and Example how to calculate
    31. Active vs Passive Investing for Better Return
    32. What Are Arbitrage Funds? · ‎Example of Arbitrage Fund
    33. mutual fund terms top 10 jargons to know before investing
    34. CAGR how to calcullate Compound Annual Growth Rate with formula
    35. Rolling Return Analyzing Mutual Fund Performance Over Time
    36. Expense Ratio What Is this fee And Why Does It Matter with examples
    37. Direct vs Regular Mutual Fund
    38. Benchmark in Mutual What It Is, Types, and How to Use Them
    39. Mutual Fund Risk Exploring Beta, Alpha, and Standard Deviation
    40. sortino ratio and Capture Ratios uses in Evaluating Mutual Fund Performance and Risk
    41. Mutual Fund Portfolio Guide for Financial success
    42. How to choose the best Mutual Fund for Your Portfolio by Evaluating Risk and Objectives
    43. Mutual Fund for beginners cheat sheet for Financial Success
    44. Smart Beta etf Exploring the Factors that Drive Return
    45. Asset Allocation and Diversification to Build a Balanced Portfolio
    46. Investment Vehicles Exploring the Evolution From Mutual Funds to ETFs
    47. GDP to Market Cap Ratio: Exploring the Link between Macroeconomics and Investments
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    49. Personal finance Guide to Optimizing Your Investments and Achieving Your Financial Goals
Marketopedia / Importance of Personal Finance / mutual funds introduction

After the retirement chapter, we now realise that accumulating an adequate retirement corpus requires a long-term investment in mutual funds.  Such funds play a huge role in our financial security, so taking some time to research how they operate is absolutely necessary. It’s not just the basics – learning more will enable you to use it effectively. Here are the topics that will be covered:


– What is a mutual fund?


Who runs a mutual fund and why?


– Regulations around mutual funds from its investor’s perspective


– Several types of MF- Debt, FoF, Hybrid, Equity, Liquid


– How to analyse a mutual fund? – Risk, return, ratios, exposure


Factors that matter – MF ranking, Direct vs Regular, Growth vs Dividend


– Setting long-term return and risk expectations


– Constructing goal-based mutual fund portfolios


Logistics- SIP, STP, CAS statements, SWP, DEMAT vs non-DEMAT mode


– Tracking investments


– Mutual fund taxation


– Large scale fund manager


A lot of us have made a visit to the local bakery at some point, probably to pick up a loaf of bread or some of their delectable biscuits. These treats tend to have a distinctive regional flavour – something you won’t find in any other city. That’s what makes them so special – you can’t get them anywhere else!


No matter where I am, Britannia’s biscuits are a constant. Present in both Bangalore and Delhi, they taste, look and weigh the same with absolutely no change in ingredients. This offers customers a highly standardised product which they can rely on.


Britannia is a large-scale baker with a wide distribution network, while your local producer caters more to his loyal customers in the area. He doesn’t have the same expansive reach that Britannia does.


Furthermore, there are “fund managers” operating on a large scale to serve millions of customers, providing each one with the same services.


Large-scale fund managers typically use a mutual fund structure to provide their services. Drawing an analogy, let us recap what we have already discussed.



Here are the takeaways:


– A fund manager is in charge of overseeing your finances. They ensure that funds are properly administered, invested and managed effectively.


An Asset Management Company (AMC) is a place where a fund manager works and can oversee and invest your money.


– The ‘Mutual Fund structure‘ is like a vehicle or mechanism for managing your money. With this, you can strive towards your financial goal.


Now let’s learn how a mutual fund company is set up and functions.


If you invest in a DSLR camera and put it on auto mode, you’ll likely take decent photos just by beginning to click away. However, expanding your knowledge of the camera can help you use it better, resulting in amazing photographs.


Thus, understanding the format of an AMC is quite advantageous. It’s one of those pieces of information that could be useful at any moment.


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