Investing: The Basics

Mutual Funds - An Overview

A mutual fund pools money from many investors and invests it according to a stated objective, with each investor’s share represented by units valued at the daily Net Asset Value (NAV). This guide covers the structure behind every fund — Sponsor, AMC, Trustees, Custodian, and Registrar/Transfer Agent (CAMS/KFin), all under SEBI oversight — the difference between open-ended, close-ended, and interval funds, the major categories by what they invest in (equity, debt, hybrid, solution-oriented, gold/silver, international, index/ETF, and funds of funds), quick maps of equity and debt fund sub-categories, the cost structure (direct vs regular plans, Total Expense Ratio, and exit loads), a recap of active vs passive funds, and the core benefits — diversification, professional management, liquidity, affordability via SIPs, and SEBI-regulated transparency — that explain why mutual funds exist at all.