Mutual Fund Simplified

CAMS25Many of us wonder on this – How does a mutual fund work and what is there in for me and all sorts of other questions engulf the eager investor. Here is a simpler version of it…

All the money that you invest in a Mutual Fund, provides you credit in terms of a unit issued in your name (in your folio or a relationship account).

The funds that investors like you have invested gets pooled and a qualified Investment Manager ( who knows the trick of the trade) is given the task of managing the mutual fund.

The scheme that you invest in decides on the instruments in which the fund will invest, namely, it could be an Equity, Debt, Gold Fund or could even invest in currencies if the same is declared by the fund.

All your investments keep earning returns and the profits are accumulating and reflect in the Net Asset Value (NAV) which proportionately increases.

It is very simple and easy for you to encash your investments. Yes, you approach a Registrar and Transfer Agent (RTA) like CAMS or approach the AMC branches to redeem the units.

The proceeds now-a-days are directly credited to your account, as long as you have given a valid NEFT code and the account details are correct.

Next important step (you need not be taught) Go to the ATM, swipe the card, take the money and SPEND It…..


Published by

Sudarshan Ranganthan

Breaths Investments, Suggests Wealth Creation Ideas, Lives on Law Of Attraction

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