Suggest a new Definition
Proposed definitions will be considered for inclusion in the Economictimes.com
Mutual-Fund
- PREV DEFINITIONMulticap FundsMulticap Funds are diversified mutual funds which can invest in stocks across market capitalization.Read More
- NEXT DEFINITIONNet Asset ValueNet asset value (NAV) is the value of a fund's asset less the value of its liabilities per unit.Read More
What is 'Mutual Fund'
Definition: A mutual fund is a professionally-managed investment scheme, usually run by an asset management company that brings together a group of people and invests their money in stocks, bonds and other securities.
Description: As an investor, you can buy mutual fund 'units', which basically represent your share of holdings in a particular scheme. These units can be purchased or redeemed as needed at the fund's current net asset value (NAV). These NAVs keep fluctuating, according to the fund's holdings. So, each investor participates proportionally in the gain or loss of the fund.
All the mutual funds are registered with SEBI. They function within the provisions of strict regulation created to protect the interests of the investor.
The biggest advantage of investing through a mutual fund is that it gives small investors access to professionally-managed, diversified portfolios of equities, bonds and other securities, which would be quite difficult to create with a small amount of capital.
Description: As an investor, you can buy mutual fund 'units', which basically represent your share of holdings in a particular scheme. These units can be purchased or redeemed as needed at the fund's current net asset value (NAV). These NAVs keep fluctuating, according to the fund's holdings. So, each investor participates proportionally in the gain or loss of the fund.
All the mutual funds are registered with SEBI. They function within the provisions of strict regulation created to protect the interests of the investor.
The biggest advantage of investing through a mutual fund is that it gives small investors access to professionally-managed, diversified portfolios of equities, bonds and other securities, which would be quite difficult to create with a small amount of capital.
- PREV DEFINITIONMulticap FundsMulticap Funds are diversified mutual funds which can invest in stocks across market capitalization.Read More
- NEXT DEFINITIONNet Asset ValueNet asset value (NAV) is the value of a fund's asset less the value of its liabilities per unit.Read More
Related News
ET Explainer: Understanding new fund offers and how to invest in themWith a surge in market activity, mutual fund houses are introducing New Fund Offers (NFOs). NFOs provide limited-time subscriptions for new schemes priced at ₹10 per unit. Financial planners advise careful consideration, preferring established open-ended schemes over new ones due to their track records and transparency.
Fincare Business sells 1.7 pc stake in AU SFB for Rs 803 cr; Morgan Stanley, SocGen pick stakeFincare Business Services on Monday sold a 1.7 per cent stake in AU Small Finance Bank to investors like DSP Mutual Fund, Morgan Stanley and Societe Generale (SocGen) for Rs 803 crore via open market transaction. Fincare Business Services was the promoter of erstwhile Fincare Small Finance Bank (SFB).
Bajaj Auto to hike provision for deferred tax by Rs 211 cr post indexation benefit withdrawalBajaj Auto Ltd has stated a need to hike its deferred tax provision by Rs 211 crore due to recent changes in tax regulation on debt mutual funds. The company will adjust its accounting provisions to reflect the withdrawal of indexation benefits and a revised tax rate. This adjustment will impact Q2 FY25 financial results.
Promoters of Electronics Mart India sell 7.8 pc stake for Rs 689 crAccording to the bulk deal data on the National Stock Exchange (NSE), Pavan Bajaj and Karan Bajaj sold 1.50 crore shares each, representing a 7.8 per cent stake in Electronics Mart India Ltd (EMIL). The shares were offloaded in the price range of Rs 229.75-229.77 apiece, taking the transaction value to Rs 689.28 crore. After the latest transaction, the combined shareholding of promoter and promoter group entities' in EMIL has declined to 65.17 per cent from 72.97 per cent.
Who says we don’t need FII money? Net monthly SIP flows not more than Rs 10K crore: Samir AroraSamir Arora, founder of Helios Capital, disclosed that India's mutual fund SIP numbers are overstated, with actual net flows at Rs 10,000 crore monthly. He advised balancing market enthusiasm with vigilance on valuations and potential risks. Arora also warned about tax hikes impacting FII investments and recommended a careful approach to choosing stocks.
Dhirendra Kumar on long-term investment & art of taking minimum riskDhirendra Kumar, CEO of Value Research, discussed his disciplined spending and investment strategies, emphasizing the importance of delayed gratification and careful financial planning. He categorizes expenses into essential, efficiency-boosting, and pleasure. Kumar's approach has led to his financial freedom, and he advises aspiring for financial independence and early retirement while ensuring a balanced lifestyle.
ETMarkets Smart Talk: Sensex@80K! Sahil Kapoor recommends multi-asset allocation strategy for new investorsSahil Kapoor from DSP Mutual Fund advised retail investors to prioritize a balanced investment approach combining equities and debt. He suggested a multi-asset allocation strategy, warned against high-risk investments like microcaps, and stressed the need for aligning investments with financial objectives. Kapoor highlighted the importance of focusing on quality and large-cap stocks.
Mutual fund industry backs Sebi chief Madhabi Buch in Hindenburg issue, AMFI issues statementAMFI backed Sebi chief Madhabi Buch amid the Hindenburg controversy, describing the allegations as sensationalism and emphasizing India's financial system's security. It highlighted the market's credibility and the regulator's role in fostering growth in the mutual fund industry. Various market participants also supported Buch, calling the allegations unsubstantial.
6 investing lessons from two decades of experienceAditya Birla Sun Life Mutual Fund celebrates its 30th anniversary, I reflect back to 2005, when I began my career managing the flagship fund, Aditya Birla Sun Life Frontline Equity Fund, for 19 of the fund's 22 years of existence. Since the fund's launch in November 2002, it has produced a CAGR of more than 19%.
Focused MFs' asset base rises 31% to Rs 1.43 lakh cr in June qtr; up to 60% returns last yearFocused mutual funds, which invest in a concentrated portfolio of stocks, are gaining traction among investors with the asset base of the category growing to Rs 1.43 lakh crore in three months ended June 2024, marking an increase of 31 per cent from a year ago.
Load More
