MUTUAL FUNDS

FOR INDIAN STOCK EXCHANGE What is a Blue chip fund? A Blue chip fund is a term used to indicate well-established and financially sound companies. Blue chip funds invest in stocks of those companies that have a credible track record with sound financials along with regular dividend payments and profitability over the years. The term “Blue chip” comes from the game of poker where the blue chip is the most expensive chip in the game. This term is also very prevalent in the stock market to classify funds. A Blue chip fund is a term used to indicate well-established and financially sound companies. Blue chip funds invest in stocks of those companies that have a credible track record with sound financials along with regular dividend payments and profitability over the years.   Features of Blue chip funds It provides a steady growth of the investor’s portfolio. The Blue-chip funds have a significant advantage over other funds as they can tide over market volatili...

Mutual fund A  mutual fund  is a professionally managed  i nvestment fund that pools money from many investors to purchase  s ecurities. These investors may be retail or institutional in nature. Mutual funds have advantages and disadvantages compared to direct investing in individual securities. The primary advantages of mutual funds are that they provide economies of scale, a higher level of diversification, they provide liquidity, and they are managed by professional investors. On the negative side, investors in a mutual fund must pay various fees and expenses. Primary structures of mutual funds include  o pen-end funds,  u nit investment trusts, and closed-end funds. Exchange traded funds  (ETFs) are open-end funds or unit investment trusts that trade on an exchange. Mutual funds are also classified by their principal investments like  m oney market funds, bond or fixed income funds, stock or equity funds, hybrid funds or other. Funds ...