illis Capital Advisory services Pvt. Ltd is one of the leading financial distribution company in the service industry and provides financial services.

Mutual Funds

A mutual fund is a vehicle which pools money from thousands of small investors and then the fund manager buys stocks, bonds or other securities with it. When you buy units of a mutual fund, you get a stake in all the companies in which the investments are made.

While investing in mutual funds it may be noted that the business affairs of a fund company is of minimal practical importance to investors. Investor’s do not normally have to bother about who the promoter of a fund company is or who the CEO is and who’s on the board of directors. The regulatory framework acts as a fire-wall, ensuring that any issues on the business side do not affect the investors.

Since most funds allow you to start a investing with as little as a few hundred rupees, you can attain a diversified portfolio for much less than you could buying individual stocks and bonds. Moreover, you do not have to worry about keeping track of dozens of holding across equity and debt instruments with a professional fund manager doing that job.

Mutual funds are safer than direct investment in the stock market but there is no guaranteed return.

No stock market related investments can guarantee capital protection. Mutual funds have an element of risk and volatility. They do not guarantee inflation protection, however, over the long term mutual fund investments are known to beat inflation and create wealth.

Almost all funds are highly liquid except for close-ended and tax planning funds. Redeemed amount will be credited to your bank account in 3-4 days.

Investing in mutual funds attracts income tax at the time of dividend payment in case of debt funds or when the units are redeemed with capital gains.

Benefits of investing in Mutual Fund:

Mutual funds are the way out for anyone looking at gains from equity investing with limited sums to invest and yet get diversity with the investments.