In this new ad, a man watches her daughter while she plays cricket. He only came across Indian batting legend Sachin Tendulkar. When the man tells Tendulkar how he wants to save money for her daughter’s future, Mr. Blaster says, just like his famous straight drive, “Aapko bhi field par utarna padega.”
Then Captain Cool, MS Dhoni, enters the scene and explains why it is necessary to grow one’s hard-earned money by investing in mutual funds. He explains that if one does not invest and only save, then the money remains the same and does not grow. In fact, inflation is another blow to capital. To overcome it, one must consider various investment options.
The partnership between the two legends is bound to open many eyes and raise awareness of the importance of investing and mutual funds.
What are mutual funds?
Mutual funds are formed only when a large number of investors deposit their money. This fund is managed by appointed fund managers. It is a fund that collects money from a large number of investors who all share the same goal.
Then, the money is invested in various options such as stocks, bonds, money market instruments and/or other securities. Each investor owns units equal to a portion of the fund’s ownership. After calculating the “Net Asset Value” or NAV of the system, some expenses are deducted from this amount and the income/profit generated from this collective investment is distributed among the investors in appropriate proportions.
Simply put, mutual funds are the most viable option for the average person, as they allow him to invest in a wide range of securities managed by professionals at a low cost.
What is AMFI?
The Association of Mutual Funds of India (AMFI) is the Indian regulatory body for the mutual funds sector. It is a division of the Securities and Exchange Board of India under the Ministry of Finance. It was incorporated on August 22, 1995. Its membership includes the majority of mutual fund companies in India. The organization’s mission is to grow the mutual fund market in India by raising ethical and professional standards.
There were 44 members of AMFI as of April 2015. These are asset management companies that are registered with AMFI and have assets under management worth over Rs 27 crore.