VSRK CAPITAL

Stock exchanges  are markets where the participants come together for  buying and selling of financial instruments  such as shares, debentures, bonds, etc. it is run by set rules and regulations set by appropriate bodies such as  SEBI in India .  Only the securities of listed companies are traded with  stock exchanges . All such  stock exchanges  shall be recognized by the government and only registered brokers and members are allowed to trade instruments on it.   There are around 9 official  Stock Exchanges  in India- Bombay Stock Exchange (BSE)   National Stock Exchange of India (NSE)   Calcutta Stock Exchange  India International Exchange (India INX)   Indian Commodity Exchange (ICEX)  Metropolitan Stock Exchange of India Ltd. (MSE)   Multi Commodity Exchange of India Ltd. (MCX)   National Commodity & Derivatives Exchange Ltd. (NCDEX)   NSE IFSC Ltd. (NSE International Exchange)

A mutual fund is one of the most popular modes of investment opt by investors desirous of making good returns on the same. There are generally only 2 ways to invest in a mutual funds scheme- Lump sum investment and Systematic Investment Plan . Lump-sum investment refers to the investment of a good sum of money once into the scheme. It is suitable for times when you have a free load of cash in hand with you. However, the availability of a comparatively huge sum of money is not very common and this is the reason why many potential investors were unable to make investments. Systematic Investment Plan (SIP) was brought as a mean of making a systematic and regular investment. This requires the investors to invest a fixed amount of funds at stated intervals, regularly. This has dealt with the inability of huge sums and allows the common man a chance to invest.

Mutual funds are one of the most popular financial instruments in town.  Mutual fund  is a collection of funds pooled in by investors and managed by a portfolio manager. Such funds are invested into various schemes in accordance to the earlier set objectives. While the above information is generally available on all the online sites, the actual working of such funds isn’t told with much clarity and we ought to clear all your doubts on the actual working of mutual funds. So, let’s start. As mentioned earlier  mutual funds  are a pool of resources instead of being a single resource which means there are multiple investors who have put money in a fund. Each person who has invested their money into the fund gain ownership over a part of the fund, known as a unit. We can also say that the entire fund is subdivided into multiple parts known as units. So, when a person wants to invest in a fund he has to buy these units. Such mutual funds are of many types like equity funds, debt

Mutual fund is an investment fund where multiple investors pool their money to purchase securities. Such funds are managed by a highly trained professional commonly known as a fund manager or  portfolio manager . This individual invests this corpus of funds into different securities such as stocks, debentures, bonds, gold, etc. as per the objective of the fund and with the aim of reaping profits out of such investment. Let’s understand this more clearly with an example of a mutual fund known as  Hybrid Equity Fund . Normally, all invest such mutual funds around 70% of the total corpus in equity, 18% in debt and 12% in other securities. Within such umbrella of securities, there are a large number of companies. The  investment of money into a various types of securities  a dividend supported by fixed returns. Also, within such types of securities, example- equity, there are a lot of companies existing in various sectors such as banking, refineries, housing finance and con