Mutual Funds
A mutual fund is simply a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The mutual fund will have a fund manager who is responsible for investing the pooled money into specific securities (usually stocks or bonds).
Mutual funds are one of the best investments ever created because they are very cost efficient and very easy to invest in (you don’t have to figure out which stocks or bonds to buy).
A mutual fund is a collection of stocks, bonds, or other securities owned by a group of investors and managed by a professional investment company. For an individual investor, having a diversified portfolio is difficult. Mutual funds helps the individual investors to invest in equity and debt securities simultaneously. When investors invest a particular amount in mutual funds, he becomes the unit holder of corresponding units. In turn, mutual funds invest unit holders’ money in stocks, bonds or other securities that earn interest or dividend. This money is distributed to the unit holders. If the fund gets money by selling some stocks at higher price the unit holders are liable to get the capital gains.
The primary advantage of funds is the professional management of your money. Investors purchase funds because they do not have the time or the expertise to manage their own portfolio. A mutual fund is a relatively inexpensive way for a small investor to get a full-time manager to make and monitor the investments.
Because a mutual fund buys and sells large amounts of securities at a time, its transaction costs are lower than you as an individual would pay.
Buying a mutual fund is easy! The minimum investment is also very small. As little as Rs. 500 can be invested on a monthly basis. Just contact us to know more.
The origin of mutual fund industry in India was with the introduction of the concept of mutual fund by UTI in the year 1963. It accelerated from the year 1987 when non-UTI players entered the industry. In the past decade, Indian mutual fund industry had seen a dramatic imporvements, both qualitywise as well as quantitywise.
The minimum amount to start investing in mutual funds in India is as low as ₹100 per month through a Systematic Investment Plan (SIP) in select funds, while most equity mutual funds allow SIPs starting at ₹500 per month. For lump sum investments, the minimum investment is typically ₹5,000 for most mutual fund schemes. At Rijhwaani Associates, mutual fund investing is made easily accessible to salaried employees, businesspersons, homemakers, students, and first-time investors. There is no maximum limit on mutual fund investments in India.
The key difference between direct and regular mutual funds is that direct mutual funds are purchased directly from the AMC (without a distributor), resulting in a lower expense ratio, while regular mutual funds are purchased through a registered distributor like Rijhwaani Associates (ARN-112717) and include a distributor commission embedded in the expense ratio. Regular mutual funds are ideal for investors who want personalised roadmap, portfolio review, rebalancing clarity, and hand-holding during market volatility. While direct funds have a marginally lower cost, regular funds through an experienced firm like Rijhwaani Associates often deliver better outcomes.
Mutual funds in India are regulated by SEBI (Securities and Exchange Board of India) and are considered a safe and transparent investment option when chosen based on your risk profile and investment horizon. Mutual funds are not guaranteed instruments, but investing through an AMFI-registered distributor like Rijhwaani Associates helps investors choose the right fund category, manage risk, and avoid common mistakes.
You can track your mutual fund portfolio in India through multiple ways: (1) through the AMC’s official website or app, (2) through CAMS (camsonline.com) or KFintech for a consolidated view across all AMCs, (3) through the MF Central portal (mfcentral.com) which shows all your mutual fund holdings across AMCs in one place, (4) if you have invested through Rijhwaani Associates, then the company also provides online portfolio tracking, performance reports, and personalised reviews. Investors of Rijhwaani Associates receive periodic portfolio statements and review meetings are held as well, to ensure that the investments stay aligned with the financial roadmap of clients.
There are many options available for beginners. At Rijhwaani Associates, first-time investors are informed about the right fund category based on age, risk appetite, income, and individual financial roadmap before any investment is recommended.
An SIP (Systematic Investment Plan) is a method of investing a fixed amount regularly — monthly, quarterly, or weekly — into a mutual fund scheme. When you start an SIP, a fixed amount (e.g., ₹5,000/month) is automatically debited from your bank account and invested in your chosen mutual fund on a fixed date. An SIP works on the principle of Rupee Cost Averaging — when markets are low, you buy more units; when markets are high, you buy fewer units — reducing the average cost of investment over time. An SIP also harnesses the power of compounding, where your returns earn returns over time.
To start an SIP in Mumbai and Thane through Rijhwaani Associates, follow these steps: (1) Contact Rijhwaani Associates via their website www.rijhwaaniassociates.com or call their Thane office; (2) Identify your investment roadmap, risk profile, and monthly SIP amount; (3) Complete your KYC (Know Your Customer) process — this is a one-time requirement and can be done digitally with PAN card and Aadhaar card; (4) Select the recommended mutual fund scheme suitable for your requirements; (5) Set up an auto-debit mandate from your bank account; (6) Your first SIP instalment will be processed on your chosen date.
An SIP (Systematic Investment Plan) and lump sum are two methods of investing in mutual funds. An SIP involves investing a fixed amount regularly (e.g., ₹5,000/month), while lump sum means investing a large amount at one time (e.g., ₹1,00,000 at once). SIPs are better for: salaried investors with regular monthly income, beginners, volatile market conditions, and investors who want to build discipline. Lump sum is better for: investors who have received a bonus, inheritance, or property sale proceeds, and when markets are at multi-year lows. Rijhwaani Associates assists you as per your current situation and requirements.
An SIP (Systematic Investment Plan) and lump sum are two methods of investing in mutual funds. An SIP involves investing a fixed amount regularly (e.g., ₹5,000/month), while lump sum means investing a large amount at one time (e.g., ₹1,00,000 at once). SIPs are better for: salaried investors with regular monthly income, beginners, volatile market conditions, and investors who want to build discipline. Lump sum is better for: investors who have received a bonus, inheritance, or property sale proceeds, and when markets are at multi-year lows. Rijhwaani Associates assists you as per your current situation and requirements.
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