Mutual funds are perhaps the one of the simplest, transparent and cost effective investment product. Thanks to our regulator, the product is on a regular journey of becoming increasingly investor friendly with every passing year.
A Mutual Fund in a simple way is a pool of money that is invested by an Asset Management Company (AMC) in line with a common investment objective. This pool is created by millions of investors who intrust their money to a fund manager of the AMC. The fund manager ensures that the funds are invested in line with the objectives of the scheme. In return the AMC charges on a yearly basis a fund management fees which is a small fraction of the total funds being managed.
Mutual funds are primarily of three types- Equity, Debt and Hybrid funds. Equity funds invest into stock markets and are suited to investors who want capital appreciation. Debt funds invest into fixed income securities such as bonds, debentures, Fixed Deposits, etc. Lastly, Hybrid funds invest in combination of Equity and Debt, thereby providing a hybrid solution to meet the requirements of investors who may not want to invest in 100% Equity or 100% Debt option.
We assist our clients in identifying a suitable mutual fund option which could assist them with their investment requirements. It is extremely difficult to identify a good time to invest in the stock markets and hence we believe in time tested principles of investing via the Systematic Investment Plan (SIPs) or Systematic Transfer Plans (STPs) to spread the investment amount over a period of time. For understand more about Mutual Funds and the investment techniques, please refer to our blog where we write regularly on this topic.
You can also read about our investment selection philosophy by reading our specific blog post > How to Evaluate Investment Options.
Banyan Financial Associates is an AMFI Registered Mutual Fund Distributor.