The article takes a closer look at Mutual Fund investing through SIP, Fund of Funds, Gold ETFs, REMFs and CPS.

The popularity of Mutual Funds (MFs) is increasing and India's robust capital market has resulted in the growth of its MF sector. Investors who were disenchanted with MFs have returned in a big way. To look at a few figures, the Asset Under Management (AUM) of MFs in India grew by 57%, amounting to over 3 lakh cr between August 2005 and August 2006. There is still a large scope of improvement for the industry; for example, the total asset mobilization to this sector has been 3.6% in 2005-06 whereas the household savings in banks is 46.7%. So, we can understand the growth possibility these funds can experience in a country like India.

A Mutual Fund (MF) is nothing but pooling the money of several investors and re-investing them in the stocks, bonds and other money market instruments. The investor gets a proportional share in the gains as well as losses of the fund. The value of all the securities in the portfolio is calculated daily. The Net Asset Value (NAV) is calculated after deducting all expenses and dividing the remaining value by the number of units in the fund. The fund's objective is laid out in its prospectus, which is the legal document containing information about the fund, its history, its officers and its performance. An Asset Management Company (AMC) provides several MF schemes with similar or varied investment objectives. For example, the HDFC Mutual Fund House has a number of schemes like HDFC Capital Builder, HDFC Tax saver, HDFC Top 200, which are present under various categories of investment objectives.

Portfolio Organizer Magazine, Mutual Funds, Asset Under Management, AUM, Net Asset Value, NAV, HDFC Mutual Fund House, Asset Management Company, AMC, Ford Motor Company, Systematic Investment Plans, SIPs, Franklin Templeton, ICICI Prudential Technology, Gold Exchange Traded Funds , GETFs, Security Transaction Tax, STT, Real Estate Investment Trust, REIT, Capital Protection Schemes, CPS, Public Provident Fund, PPF.