Mutual Funds in Tamil (தமிழ்)

1) What is Mutual Funds?
A mutual fund is formed by mutual fund companies and pools investments from various individual and institutional investors with common investment objectives. A fund manager professionally manages the pooled investment by strategically investing as per fund objective in securities such as stocks, bonds, and short-term debt etc. to generate maximum returns for the investors.
Fund managers are professionals in the field with an excellent track record of managing investments and have an in-depth understanding of markets. The fund houses charge expense ratio, which is the annual maintenance fee to manage investments of individuals. The investors make money through regular dividends/interest and capital gains and they can either choose to reinvest the capital gains via a growth option or earn a steady income by way of a dividend option.
2) Mutual funds can be categorized as below.
a) Equity (Large Cap, Medium Cap, Short Cap etc.)
b) Debt (Liquid Fund, Corporate Bond Fund, Gilt Fund etc.)
c) Hybrid (Conservative, Aggressive etc.)
d) Solution Oriented (Retirement Fund, Children's Fund etc.)
e) Others (Index Funds, ETF's etc.)
3) Benefit or Advantages of Mutual Funds
a) Various Schemes - Mutual Fund schemes are designed to cater the diverse and varied requirements of individuals.
b) Diversification - Mutual funds ensure that your money is placed into a diversified basket of stocks and bonds.
c) Professional Management - Funds are managed by qualified fund managers and research professionals.
d) Affordability - You can start a SIP with as little as Rs. 500.
e) Liquidity & Ease of Access - You can easily move your money in and out of Mutual Fund investments.
f) Well Regulated - Mutual funds are regulated by the SEBI (Securities & Exchange Board of India).