Guide To Mutual Fund Investment

Mutual fund is an entity that pools money from many investors to purchase securities like company shares, Bonds, Commercial Papers, Sovereign Bonds etc. Capital collected by the mutual fund is professionally managed by the Fund Manager. Mutual Fund in India is regulated by Securities and Exchange Board of India. AMFI (Association of Mutual Funds in India) is a self-regulatory organisation which governs the professional and ethical standards and also promotes mutual funds.

Few might be aware of Asset management companies, but what about the other companies involved in mutual fund?? Come Lets Learn!! Mentotax will guide you.

Mutual Fund is formed as a Trust, Trust is governed by trust deed and Trust Acts through trustees. Trust is created by one or more sponsors, beneficiaries of the trust are the investors who has pooled money for the common objective.Trustees appoint Asset Management Company to handle the day to day operations of the fund. Securities (Shares, Gold, Bonds, etc) of the mutual fund are held by the custodians appointed by the trustees. Investors has the flexibility to invest in various schemes of mutual fund, Investors records and holdings are maintained by Registrar and Transfer agents appointed by AMC.

Lets see about SBI Mutual Fund:

Mutual Fund            SBI Mutual Fund

Sponsor                    State Bank of India

Trustee                     SBI Mutual Fund Trustee Company Pvt Ltd

AMC                         SBI Fund Management Pvt Ltd

Custodian                 SBI Global Securities Pvt Ltd

RTA                          Computer Age Management Services (CAMS) Pvt Ltd.

Mutual Fund advantages:

Professionally Managed by Fund Managers, Well regulated by SEBI, Liquidity, Diversification of funds,Transparency, Affordability, Tax Deductions, and Systematic Approach to Investments.

Mutual Fund offers various types of funds based on the asset class, Structure, Investment Objectives, and Solution Oriented Funds.

How to Start Investing in Mutual Fund?

To start investing in Mutual Fund, Investor must undergo the Central Know Your Customer (CKYC). It is a one-time Identity verification process. Investor needs to submit the identity and address proof to complete the KYC. Central KYC is an initiative by Government of India which eliminates the burden of producing KYC documents and getting verified every time investors deals with financial entity. CKYC Records are maintained by CERSAI. Once CKYC of the investor is completed, He/She can invest in any mutual fund in India.

#Mentotax #Investment #MutualFunds

Keep Reading for more updates!!

For More details and Clarifications

mentotax@gmail.com

Give Your Support on Social Media Sites by Just Clicking the below Links :

* Instagram    *Twitter    *Facebook