Stock Market Training in Hyderabad Ameerpet
AS Chakravarthy NCFM Academy Hyderabad Ameerpet
Introduction to Mutual Funds:
AS Chakravarthy NCFM Academy Hyderabad Ameerpet is the best stock market trainig institute in Hyderadbad - for live Coaching
Especially on Mutual Fund Distributors Module (NISM Series - 5 A) Classes and NCFM Certification
courses. This module is developed by NISM - SEBI INSTITUTE and AMFI to build a cadre of Mutual
fund advisors and disseminate knowledge about the working of the Mutual funds. AS Chakravarthy NCFM ACADEMY Hyderabad
esablished 2004, till date we trained thousands of students in Mutual Fund Distributors Module (NISM Series - 5 A).
WHAT ARE MUTUAL FUNDS?
A mutual fund is a collective investment vehicle that collects & pools money from a number of
investors and invests the same in equities, bonds, government securities, money market instruments.
In short, mutualfund is a collective pool of money contributed by several investors and managed by a
professional Fund Manager.
Mutual funds are ideal for investors who:
a. lack the knowledge or skill /experience of investing in stock markets direcly.
b. want to grow their wealth.
c. wish to invest only small amounts.
Stock Market Training in Hyderabad - About Mutual Funds
Best Stock Market Training in Hyderabad - About Mutual Funds
: Advantages of investing in Mutual Funds:-
1. Professional Management : Investors may not have the time or the required knowledge and
resources to conduct their research and purchase individual stocks or bonds. A mutual fund is
managed by Professionals and continuously monitors investments and rebalance the portfolio
accordingly to meet the scheme's objectives.
2.Risk Diversification: Buying shares in a mutual fund is an easy way to diversify your investments
across many securities and asset categories such as equity, debt and gold With diversification, the
risk associated with one asset class is countered by the others.Even if one investment in the portfolio
decreases in value, other investments may not be impacted and may even increase in value. In other
words, you do not lose out on the entire value of your investment if a particulr component of your
portfolio goes through a turbulent period. Thus, risk diversification is one of the most prominent
advantages of investing in mutual funds.
3.Affordability & Convenience (Invest Small Amounts): For many investors, it could be more costly to
directly purchase all of the individual securities held by a single mutualfund. By contrast, the minimum
initial investments for most mutualfunds are more affordable.
4. Liquidity : You can easily redeem(liquidate) unitsof open ended mutual fund schemes to meet
your financial needs on any business day (when the stock markets and/or banks are open), so you
haveeasyaccesstoyourmoney.
However, please note that units of close-ended mutual fund schemes can be redeemed only on
maturity. Like wise, units of ELSS have 3 year lock-in period and can be liquidated only there after.
5. Low Cost : An important advantage of mutual funds is their low cost. Due tohuge economies of
scale, mutual funds schemes have alow expense ratio.
6. Well-Regulated: Mutual Funds are regulated by the capital markets regulator, Securities and
Exchange Board of India (SEBI) under SEBI (Mutual Funds) Regulations, 1996. SEBI has laid down
stringent rules and regulations keeping investor protection, transparency with appropriate risk
mitigation frame work and fair valuation principles.
7.Tax Benefits: Investment in ELSS up to Rs1,50,000 qualifies for tax benefit under section 80C of the
Income Tax Act,1961. Mutual Fund investments when held for alonger term are tax efficient.
Stock Market Training SEBI Categorization of Mutual Fund Schemes
The Stock Market Training SEBI Categorization of Mutual Fund Schemes:
As per SEBI guidelines on Categorization and Rationalization of schemes issued in October2017,
mutual fund schemes are classified as:
1. EquitySchemes
2. DebtSchemes
3. HybridSchemes
4. Solution Oriented Schemes - For Retirement and Children
5. OtherSchemes - Index Funds & ETFs and Fund o fFunds
-Under Equity category, Large, Mid and Small cap stocks have now been defined.
-Balanced/Hybrid funds are further categorised in to conservative hybrid fund, balanced hybrid
fund and aggressive hybrid fund.
Sourse NCFM - NSEIL.
