All you want to know about Mutual Funds


1. Are investments in mutual fund units safe?

2. As my dividend receipts from mutual fund units were tax free under section 80 L, will I loose because of the new budget provision whereby my mutual Fund

3. What are the tax benefits for investing in mutual fund units?

4. After my first purchase, can I immediately enter another transaction?

5. Is there a minimum transaction amount for each scheme?

6. Do I need to allocate funds for investing in Mutual Funds?

7. Who are the issuers of Mutual funds in India?

8. Is there any minimum lock-in period for my units?

9. What is Shut-Out Period?

10. As a new investor how do I select a particular scheme?

11. It is very often said that Mutual Funds have performed badly. Please explain?

12. What are the rights that are available to a Mutual Fund holder?

13. Besides the NAV, are there any other parameters which can be compared across different funds of the same category?

14. How, and against what, should I benchmark the performance of a mutual fund ?

15. Are returns from mutual funds guaranteed ?

16. What is an asset management fee ?

17. Are mutual funds allowed to indulge in speculation / day trading ?

18. Who is a custodian ?

19. What is an Asset Management Company (AMC) ?

20. What are the regulations that govern a mutual fund ?

21. What is redemption price ?

22. What is purchase (sale) price ?

23. Can the buy and sell price be different from the NAV ?

24. What are loads ?

25. What is Net Asset Value (NAV) ?

26. Does investing in Mutual Funds mean investing in equities?

27. What are the types of risks in Mutual Funds?

28. Are returns from mutual funds guaranteed?