Mutual Funds

Fixed income mutual fund is a type of mutual fund that invests in fixed income securities such as government bonds, corporate bonds, money market instruments, certificates of deposit (CDs), etc. The aim of these funds is to provide periodic income to the investors in the form of dividends and capital appreciation.

Mutual funds are investment vehicles that collect money from numerous investors to buy a basket of stocks, bonds, and other securities. That means one mutual fund can invest in dozens or even hundreds of individual securities. Hence, it is not unusual for investors to hold shares in several mutual funds.

Jensen's alpha is a metric used by investors to evaluate the performance of actively managed mutual funds. It measures the fund's return compared to the return predicted by its risk level, quantifying the value added or lost by the fund manager.

Mutual funds remain one of the most accessible and widely used investment vehicles for retail investors in India. However, as investment needs become more complex, high-net-worth individuals (HNIs) are turning to Portfolio Management Services (PMS) for a more customised approach.

One of the most important things to consider when investing is the return capability of the investment vehicle. For equity, there are ratios like the risk-reward ratio that help you assess the maximum risk to take for a trade.

As a non-resident Indian (NRI), you can invest in mutual funds by following certain guidelines.

Value funds invest in stocks of companies that are currently undervalued but have strong fundamentals with the potential to do better in the future.

Mutual fund charges primarily come in the form of total expense ratio or TER. The maximum TER is fixed by SEBI basis the fund’s assets under management (AUM).