Mutual Funds FAQs

• Diversification

  • Mutual Funds spread their holdings across various investment vehicles, reducing the effect any single security or class of securities has on the overall portfolio. Because mutual funds contain hundreds or thousands of securities, investors are less affected if one security underperforms.

• Professional Management

  • Mutual Fund accounts are managed by qualified professionals. These professionals invest only after careful analysis of the performance and prospects of different securities. It is a continuous process that takes time and expertise which will add value to your investment.

• Regulations

  • Mutual Funds are required to be registered with the Securities and Exchange Commission. They are obliged to follow strict regulations designed to protect investors.

• Affordability

  • As a small investor, you may find that it is not possible to buy shares of larger corporations. With Mutual Funds small investors can get started because of the minimal investment requirements.

• Liquidity

  • With open-end funds, you can redeem all or part of your investment any time you wish and receive the current value of the shares. Moreover, the process is standardized, making it swift and efficient.

• Transparency

  • As a unit holder, you are provided with regular updates, for example daily NAVs, bid and offer prices as well as information on the fund’s holdings and the fund manager’s strategy.

Since they trade like stocks, liquidity for Mutual Fund  is a function of the market demand and supply. 

Trading costs:

• Buying = 1.1325% of consideration amount
• Selling = 1.4775%  of consideration amount
• CSCS alert fee+VAT of 4.30 is also applicable per trade clip