{"id":1226,"date":"2024-04-22T11:03:05","date_gmt":"2024-04-22T11:03:05","guid":{"rendered":"https:\/\/jamawealth.com\/askguru\/?p=1226"},"modified":"2026-03-02T19:27:24","modified_gmt":"2026-03-02T19:27:24","slug":"how-does-a-mutual-fund-investments-operate","status":"publish","type":"post","link":"https:\/\/maxiomwealth.com\/askguru\/2024\/04\/22\/how-does-a-mutual-fund-investments-operate\/","title":{"rendered":"How does a mutual fund investments operate?"},"content":{"rendered":"\n

Here is a brief description of how it operates:<\/p>\n\n\n\n

  1. A mutual fund is a pool of money contributed by its buyers.<\/li>
  2. It is run by a company (Asset Management Company) that is tightly regulated and monitored by the government (SEBI), so it is quite safe.<\/li>
  3. A professional manager manages the pool by buying shares in good performing companies (equity), or lends it to such companies (debt).<\/li>
  4. The profit made by the mutual fund is returned back to the people contributing to the pool, as dividend or an increase in value.<\/li>
  5. You can redeem the units with the fund; they then sell the underlying units and credit the cash back to your bank account.<\/li><\/ol>\n\n\n\n

    Tip: When buying a mutual fund; avoid \u2018regular plans\u2019 sold by brokers because commissions erode upto 40% of your money over time (though they may appear small at 1% to 1.5% per year). G o for commission free \u2018direct plans\u2019 from a direct mutual fund platform such as jama.co.in<\/a><\/p>\n\n\n\n\n

    \n

    Maxiom Wealth \u2014 Free Tool<\/p>\n

    Is Your Mutual Fund Working Hard Enough?<\/h3>\n

    Two funds with similar star ratings can deliver very different outcomes. Use our fund comparison tool to check if you’re in the right scheme for your risk profile and investment horizon.<\/p>\n Compare Funds \u2192<\/a>\n Talk to a Financial Advisor<\/a>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"

    Here is a brief description of how it operates: A mutual fund is a pool of money contributed by its buyers. It is run by a company (Asset Management Company) that is tightly regulated and monitored by the government (SEBI), so it is quite safe. A professional manager manages the pool by buying shares in… Read More »How does a mutual fund investments operate?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38,39],"tags":[],"class_list":["post-1226","post","type-post","status-publish","format-standard","hentry","category-mutual-funds","category-mutual-funds-book"],"_links":{"self":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/1226","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/comments?post=1226"}],"version-history":[{"count":1,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/1226\/revisions"}],"predecessor-version":[{"id":3611,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/1226\/revisions\/3611"}],"wp:attachment":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/media?parent=1226"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/categories?post=1226"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/tags?post=1226"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}