Investing in Mutual Funds : Note for NRI's

Investing in Indian Mutual Funds: A Note to the NRIs
The concept of Mutual Funds is well known and no needs any introduction. For beginners, mutual funds is a kind of collective money investment program where money from several investors are merged and invested in securities which include stocks, bonds, valuable metals, commodities and also in other mutual funds. Any mutual fund will have a manager who administers the funds in terms of investing with respect to the target of the fund. Generally, a board of directors or trustees will oversee how the fund is administered by the manager or the firm that governs the funds in the notion to ensure that the fund is manipulated in the best interest of the investors. The net incomes and gains of the mutual funds are distributed according to the dividends invested by the investors periodically. A management fee is levied on the investors for the sake of the management expenses of the fund.

There are prime advantages for NRIs who wish to invest in Mutual Funds in India. Unlike trading commodities individually, where the trader might lack expertise in the field, mutual funds in India are managed by professionals who are experienced with the market trends and fluctuations. For small time investors who can’t afford to have someone experienced to manage their investments by a dedicated professional, this comes in very handy. As the risk on investment factor is pretty low when compared to other investing options the value for money in this context is well appreciated.

In the case of investing in mutual funds rather than owning individual stocks and bonds, the money of the investor is literally broken down and invested in various companies and organizations of different genre. This further reduces the risk of incurring loss on invests and promises a lucrative ROI (Return on Investment). Any individual with meager funds who looks forward to investing it, might not be able to split his money to invest in various securities as carried out in the case of mutual funds. And since the mutual funds transact enormous amount of money in buying and selling securities, the transaction costs levied on the fund is reduced thus favouring the investor immensely.

With the investment policies of the government of India and the growth of Indian economy, investing in Indian Mutual funds can be very profitable for NRIs. Besides these factors, any Indian mutual fund permits the investor to convert the funds into cash instantly just like in trading commodities, any time. With the development of the internet, any NRI looking forward to invest can actually invest through transactions online, with ease.