Most important of all, there are certain precautions investors should take while investing in mutual funds: Always the investor should keep a photo copy of the application form. This can be filed to know the manner in which application was made (single, joint ownership and order of ownership). Investors will also be able to see how they have signed the forms (many investors change their signatures over time; some investors have different signatures for banking and investment transactions). Investors will also know the choice they have exercised (dividend and redemption option). The investor must preserve the counterfoil/acknowledgement issued by the collecting agency. This acknowledgement has the application number. If account statement or certificate is not received, the acknowledgement is the proof of purchase, with which investors can approach the registrar and the transfer agent. It is preferable to have joint ownership so that investments will pass on to the joint Continue reading
Mutual Fund Investments
Liquid Mutual Fund Schemes
The objective of liquid mutual fund schemes is to invest in short-term money market instruments of good credit quality. The fund predominantly invests in money market instruments and provides investors the returns that are available on these instruments. The investment portfolio is very liquid, and enables investors to hold their investments for very short horizons of a day or more. The liquid funds are normally open-ended. It provides with the following options/schemes, which are sub-products within the liquid fund. Overnight Option (Growth): This option is meant to be used by investors with very short-term investment horizon and is fully invested in the call money market. Overnight Option (Dividend): This option is meant for investors who have short-term funds to deploy but would like to earn some income on such deployment. The portfolio in this option is invested in short-term floating rate instruments, call markets and in repos. The average maturity Continue reading