New investor

Dear Mr. Mayur,

I shall attempt ( off the cuff) to give you a brief about MF schemes . For your query as to which scheme is better, please consult your financial advisor.

1. Broadly MF schemes are classified into 1. Open ended 2 Close ended schemes. (meaning can be understood by the nomenclature in the name itself).

2. Also Schemes are classified into (a) Growth oriented schemes (b) Income schemes (c) ELSS (equity linked saving schemes) (d) debt oriented schemes. (e) Balanced fund

Generally Growth , Income , Balanced and ELSS schemes prodominantly invest in equity and equity related stocks , but a small portion can also be invested in debt instruments. The debt schemes will purely invest in debt instruments.

There are also options in each of these schemes like (a) growth ( b) dividend - payout (c) Dividend -reinvest .

3. The is not entry load applicable for Individual investors at the moment . Exit load is applicable for withdrawl before 365 days from the entry date. ( kindly check the relevant scheme document).

4. Depending on the risk apetite, cash flow need you can invest in any of the schemes.

5. Daily NAV ( Net Asset Value) is declared by all the MF companies.

6. These MF companies are generally called as AMC ( Asset Management companies) promoted by a trustee company ,which normally holds these AMC's.

7. MF industry is governed by SEBI. AMFI ( Association of Mutual funds association of India) is the body of all the MF companies.

8. Before investing in MF , please be clear about your time horizon, read about the MF scheme , analyse the performance of the MF scheme , analyse about the Fund manager ( who manages the funds).

9. The performance of each of these schemes can be downloaded from their respective websites under "download" buttons. The fact scheets can also give you various informaton about each of these schemes .

10 . Expert can also give you information about the (a) Portfolio turnover ratio (b) Sharpe Ratio etc which are very technical in nature.

-Hariharan