Want To Know More About Mutual Funds?

6 Things to Know Before Investing in Mutual Funds

If you ask us, we don’t think there is any investor who does not know about mutual funds.

After all, mutual funds are one of the best investment options.

However, to many investors, Mutual Funds seem complicated and sometimes scary. That is only because they don’t have adequate knowledge about mutual funds investment.

To say it in the simplest of words, a Mutual fund is a trust that pools in money from investors (Individual or institutional),

The pooled money is then invested in equities, bonds, money market instruments etc as per mutual fund scheme’s investment objective. Every investor owns units, which simply is a portion of the total holdings of the fund.

So, if you are a new investor looking forward to know more about mutual funds so that you can make informed investment decisions, continue reading ahead.

We will tell you more about mutual funds in India on the whole.

The first thing you must know about mutual funds in India are the types of mutual funds.

Based on asset class, mutual funds can be broadly classified as:

Equity Funds

These are funds that invest in stocks of different companies majorly. Their returns are based on the performance of the underlying stocks in the market. They have potential for higher return possibilities, but it comes with a higher risk associated as well.

Debt Funds

These are funds that invest in fixed-income securities such as bonds, securities, treasury bills, etc.. This makes it a very good option for investors who don’t want to take much risk and avoid equity market volatility.

Money Market Funds

Money market funds are short term debt funds that invest in various money market instruments such as T-bills, Commercial paper, dated securities and certificates of deposits etc.

Hybrid Funds

These funds have a combination of bonds and stocks. These funds bridge the gap between equity funds and debt funds. These types of funds are more suited to investors who are willing to take exposure in both equity and debt.

We hope this gives you more clarity about mutual fund types and also about mutual funds investment.

It is imperative for an investor to have as much knowledge about mutual funds investment as possible.

Because we cannot stress enough about mutual funds investment – like any other type of investment, mutual funds too carry a risk.

We are sure you would have heard “Mutual Fund Sahi Hai”, but we are also sure one more thing about mutual funds investment:

“Mutual Fund investments are subject to market risk. Please read the offer document carefully before investing”.

With that being said, who should invest in Mutual funds?

We believe that every investor who has narrowed it down to specific financial goals should think about mutual funds investment. Because one thing you must know about mutual funds investment is that it is a potential way to achieve your goals systematically.

And there are mutual fund plans/schemes available to suit all types of investors.

All investors have to do is assess how much risk they are willing to take, for how long they intend to stay invested and finally, their goal that they look forward to accomplishing with the investment.

Once all of this is known to an investor, the most important aspect is to know about tax on mutual funds in India.

So, when we speak about tax on mutual funds in India, there is the tax on capital gains that an investor must know about.

The above is something all investors must know regarding tax on mutual funds in India.

Let us now know more about mutual funds in India.

Mutual Fund investments are one of the most popular and fastest growing investment options in India for individual investors.

You see, when we discuss about mutual funds in India, the options are many.

There are many fund houses, AMC’s, distributors, etc. who can help you on how to go about mutual funds investment.

We can tell you in detail about one such Fund House, which has multiple options if you want to invest in mutual funds – Quantum Mutual Funds.

Why Quantum? Well, simply because it has 3 Decades of Integrity, Trust & Performance.

Quantum Mutual Fund’s sponsor and Holding Company of Quantum AMC, Quantum Advisors Private Limited, was founded in 1990 as India’s first institutional equity research house.

Quantum Mutual Fund has pioneered the low-cost, direct-to-investor approach to investing in India, providing – for the first time – consistently applied valuation metrics to evaluate investment opportunities in India.

Here is a glimpse of what you can consider investing in from Quantum’s offerings:

1. Quantum Long Term Equity Value Fund

2. Quantum Tax Saving Fund

3. Quantum Equity Fund of Funds

4. Quantum India ESG Equity Fund

5. Quantum Nifty ETF

6. Quantum Liquid Fund

7. Quantum Dynamic Bond Fund

8. Quantum Gold Savings Fund

9. Quantum Gold Fund

10. Quantum Multi Asset Fund of Funds

So, today we told not only about mutual funds in India, but also about mutual funds investment in general. And also, the very important aspect of income tax on mutual funds in India.