About Mutual Funds

We understand your long-term financial plans and goals, and then help you invest your resources inappropriate funds, using our ‘investor first’ approach. We are asset managers, not asset gatherers, since we believe in working for the investor by faithfully and attentively managing what you entrust to us.

At Vistaya, we’re working to improve the financial environment for you, so you may build long-term wealth by properly investing your money into simple mutual funds that remove clutter and add value to your overall investment portfolio at affordable prices.

What is Mutual Fund?

A mutual fund is essentially a financial intermediary that allows a group of investors to pool their money with the goal of achieving a specific investment goal. It raises funds from investors and invests them on their behalf.

For maintaining and handling the money, a small fee is paid. A mutual fund is an excellent investment instrument for folks who are unfamiliar with investing (general investors). An advantageous and profit-generating feature for mutual fund investors is the ability to choose a mutual fund scheme that meets their needs. The basis for a mutual fund plan would be determined by the investor’s financial objectives.

  • Dividends on stocks and interest on bonds kept in the fund’s portfolio provide income. A fund distributes nearly all of the money it earns over the course of the year to its shareholders.
  • The fund gets a capital gain if it sells securities that have improved in value. Most funds also distribute these gains to their investors.
  • The fund’s shares rise in value if the fund’s holdings rise in value but the fund manager does not sell them. You can then sell your mutual fund shares in the market for a profit.

How does it work?

A mutual fund is a pool of stocks, bonds, or other securities that are owned by a group of investors and managed by a professional investment company like Vistaya Enterprises LLP. Having a diverse portfolio is tough for an individual investor.

Individual investors can use mutual funds to invest in both equity and debt assets at the same time. When an investor puts a certain amount of money into a mutual fund, he becomes the unitholder of the corresponding units.

Mutual funds, in turn, invest the money of unitholders in stocks, bonds, and other instruments that provide interest or dividends. The money is divided among the unitholders. Unitholders are entitled to capital gains if the fund makes money by selling some stocks at a higher price.

Advantages of Mutual Fund

Investing in mutual funds may be a very profitable investment option for investors who plan and execute their investment plans carefully and in accordance with their financial goals. Although mutual funds do entail some risk, these risks can be effectively avoided by making wise investment decisions.

Professional Management: Investing in stocks requires a lot of experience and skills, which are not readily available to an individual investor. Investors have lost major capital when they invested without knowing where to invest. However, mutual funds are managed by professional managers who have the required set of skills and expertise to make possible an organized investment strategy.

Risk Diversification: Every stock is subject to three types of risks – company risks, sector risks, and market risks. Company risks and sector risks are unsystematic risks, while a market risk is known as a systematic risk. Mutual funds invest in a number of companies across various industries and sectors. This allows the mutual fund to diversify the unsystematic risk within the portfolio.

Liquidity: Mutual funds are mainly classified as liquid investments as a majority of mutual funds have no lock-in structure. The funds are also well-integrated within the banking system, thus allowing the funds to directly transfer the amount to the investor’s bank account.

Flexibility: There are several types of mutual funds available in India that cater to investors from all walks of life. Various types of mutual funds, either individually or in combination, help investors to achieve their financial goals according to their risk capacity.

Transparency: Mutual funds transparently declare their portfolios every month. Thus, an investor knows where his/her money is being deployed. Alongside a monthly declaration of portfolios, several rating agencies and industry publications track and record their performance, thus giving the investor a sense of conviction.

For the best financial planning and financial advisory service for mutual funds, contact Vistaya Enterprise LLP. We specialize in