A mutual fund is an investment company that aggregates capital from numerous investors and allocates these funds into a diversified portfolio of securities, i.e., stocks, bonds, and short-term debt.

The combined holdings held by the mutual fund are referred to as its portfolio. Investors participate in mutual funds by purchasing units, each of which represents their proportional ownership in the fund and a share of the income it generates. This structure allows individuals to benefit from professional fund management and diversification across various financial.

Why Should Invest in Mutual Fund?

• Professional Management: Fund managers conduct research on behalf of investors, making necessary investment decisions, selecting securities, and monitoring overall performance of market.
• Diversification/Mix and Match : Mutual funds spread investments across various companies and industries, reducing risk by avoiding overreliance on a single entity.
• Flexibility:   A Systematic Investment Plan ( SIP) can be stared, stepped up, paused, or cancelled at any time. Any amount can be invested  almost at any point of time.  Similarly, balance in a fund folio (other than with Lock-in period) can be withdrawn partially, totally, or in a regular fixed amount over a long period of time. 
• Affordability: Mutual funds typically have a relatively low initial investment requirements, starting as low as Rs.100  this makes them accessible to a broad range of investors.

Liquidity: Investors in mutual funds enjoy liquidity as they can easily redeem their shares at any time anywhere. This feature  allows investors to access their funds when needed.

Documents required for Mutual Fund Investment

• Aadhaar Card
• PAN Card
• Cancelled Cheque
• Communication details i.e., Phone, Email ID
• 3 Passport size photos