The money pooled in by a large number of investors is what makes up a Mutual Fund. This money is then managed by a professional Fund Manager, who uses his investment management skills to invest it in various financial instruments.

          As an investor you own units, which basically represent the portion of the fund that you hold, based on the amount invested by you. Therefore, an investor can also be known as a unit holder. The increase in value of the investments along with other incomes earned from it is then passed on to the investors / unit holders in proportion with the number of units owned after deducting applicable expenses, load and taxes.


There are many a thing that you may desire, from a comfortable lifestyle to securing your children’s future. Investing is what takes you one step closer to achieving these goals. The fact is that merely saving for these desires may not actually help in achieving them. You need to take a certain level of risk, according to the nature of the objective, to ensure that these goals are actually met.
          Usually when a person saves and invests, it would be for any of the following reasons:
1.Capital Preservation
2.Income Generation
3.Capital Appreciation.

  • Flexibility: Mutual Fund investments offer you a lot of flexibility with features such as systematic investment plans, systematic withdrawal plans & dividend reinvestment.
  • Affordability: They are available in units so this makes it very affordable. Because of the large corpus, even a small investor can benefit from its investment strategy.
  • Liquidity In open ended schemes, you have the option of withdrawing or redeeming your money at any point of time at the current NAV
  • Diversification Risk is lowered with Mutual Funds as they invest across different industries & stocks.
  • Professional Management: Expert Fund Managers of the Mutual Fund analyze all options based on experience & research
  • Potential of return: The fund managers who take care of your Mutual Fund have access to information and statistics from leading economists and analysts around the world. Because of this, they are in a better position than individual investors to identify opportunities for your investments to flourish.
  • Low Costs: The benefits of scale in brokerage, custodial and other fees translate into lower costs for investors.
  • Regulated for investor protection: The Mutual Funds sector is regulated to safeguard the investor’s interests.

          With effect from January 1, 2011, all categories of investors irrespective of amount of investment in Mutual Funds are required to comply with KYC norms under the Prevention of Money Laundering Act 2002 (PMLA) for carrying out the transactions such as new/ additional purchase, switch transactions, new SIP/ STP/ DTP registrations received from effective date i.e. January 1, 2011.

           Thus, with effect from 1st January 2011, any investor (all applicants in a folio) investing into mutual funds through the Investment Services Account would be required to be KYC compliant with CVL(CDSL Ventures Ltd) without which the transactions may be liable to be rejected by the respective mutual fund houses.

            Systematic Investment Plan is an approach to investing within managed investments which involves investing a set of amount at regular intervals rather than investing a larger lump sum amount in one shot. By investing this way you are not attempting to capture the highs and lows of the market but rather the cost of your investment is averaged over a period of time. The essence of SIPs is that when the markets fall investors automatically acquire more units. Likewise they acquire lesser units when the market rises. This means that you buy less when the price is high whereas you buy more the price is low. Hence the average cost per unit drops down over a period of time

 Contact Us?

[wd_contact_form id=”41″]