Mutual Funds

A mutual fund is a collective investment platform that allows investors with similar investment objectives to pool funds together for investing. Typically a MF has a few to hundreds of thousands of investors. However, the basic concept of mutual funds is pooling together of funds with similar investment objective, investment process backed by professional research, easy entry and exit.

What is AMC?

An asset management company (AMC) is a company registered with SEBI which manages the assets of the mutual fund and takes investment decisions for the mutual fund.

What is AUM?

Assets under management (AUM) is the total market value of all the financial assets that an AMC manages on behalf of its investors.

Systematic Investment Plan

What is SIP?

An SIP (Systematic Investment Plan) allows an investor to invest funds at regular intervals, say each month. In the long run, regular and disciplined investing via SIP can average out the rise and fall in the markets. This is known as rupee cost averaging.

How to start a SIP?

An investor can start a SIP on a pre-decided date, every month, using Electronic Clearing Service (ECS) or direct debit facility available with banks. Each month, money will be automatically transferred from the investor’s bank account to the Mutual Fund account.

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