We at Arthashastra Investment Managers Pvt Ltd are trying to explain the basic concept of Mutual funds. Mutual fund is an investing tool wherein funds are pooled from investors and invested in mutual fund companies. The funds are invested in Equity, Debt or both. The basket of securities is called Portfolio. The funds of the investor are invested in money market instruments, stocks, bonds and other types of securities. The investor holds a proportionate share in the company. Hence, we can say that investing in mutual funds is like purchasing a piece or slice of cake from the whole cake.

Every mutual fund has a prescribed objective, which is written in the prospectus  of Mutual fund scheme papers. It is to be noted that the prospectus of Mutual fund is a legal document which is written as per the regulations of   SEBI. It contains every detail about the Mutual fund scheme, right from the history to the performance.

The different types of  mutual fund schemes are

• Equity  Mutual fund
• Debt (Income) Mutual fund
• Money Market (including Gilt) Mutual fund
• Balanced Mutual fund

At Arthashastra Investment Managers Pvt Ltd we do complete market study and help our valuable clients to invest their money in mutual funds properly.

OBJECTIVE OF MUTUAL FUND

• Equity- Here the fund will be invested only in secondary stock market.
• Debt – In debt, the funds will be invested only in fixed-income securities.
• Money Market – In this case the funds will be invested in short-term money market instruments (including government securities)
• Balanced – in this scheme the funds will be invested in proportion, as prescribed in the prospectus.

The funds are managed by fund managers on behalf of the investors. It can be managed by an individual or a fund managing company which is called Asset Management Company (AMC).  Highly qualified and professional fund managers are hired by the Asset Management Company.

The Securities and Exchange Board of India (SEBI) is the regulatory body for mutual funds. It regulated entire functioning of Asset Management Company. Also, there is board of director for every mutual fund who acts as a trustee for the investors.

We at Arthashastra Investment Managers Pvt Ltd provide our customers with complete wealth management solutions.  You can visit the website of Arthashastra Investment Managers Pvt Ltd for more details.