Mutual Funds India - Mutual Fund Investment - Types of Mutual Funds - AU Small Finance Bank
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Mutual Funds
It’s easy to achieve a lot with Mutual Fund

What is Mutual Fund?

    A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. These investors may be retail or institutional in nature.
    It is a trust that collects money from a number of investors who share a common investment objective and invests the same in equities, bonds, money market instruments and/or other securities. The income/ gains generated from this collective investment is distributed proportionately amongst the investors after deducting applicable expenses and levies, by calculating a scheme’s ‘Net Asset Value’ or NAV.
    For ease of understanding, buying a mutual fund is like buying a small slice of a big pizza. The owner of a mutual fund unit gets a proportional share of the fund’s gains, losses, income and expenses.
    Mutual funds are ideal for investors who either lack large sums for investment, or for those who neither have the inclination nor the time to research the market, yet want to grow their wealth. The money collected in mutual funds is invested by professional fund managers in line with the scheme’s stated objective.


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Why Mutual Funds:

  • Professional Money Management
    Fund managers are responsible for implementing a consistent investment strategy that reflects the goals of the fund. Fund managers monitor market and economic trends and analyze securities in order to make informed investment decisions.
  • Diversification
    Diversification is one of the best ways to reduce risk. Mutual funds offer investors an opportunity to diversify across assets depending on their investment needs.
  • Liquidity
    Investors can sell their mutual fund units on any business day and receive the current market value on their investments within a short time period (normally three to five days).
  • Affordability
    The minimum initial investment for a mutual fund is fairly low for most funds (as low as Rs 100 for some schemes).
  • Convenience
    Most mutual funds provide you the convenience of periodic purchase plans, automatic withdrawal plans and the automatic reinvestment of dividends. Mutual funds also provide you with detailed reports and statements that make record-keeping simple.
  • Flexibility and variety
    You can pick from funds based on market cap like large cap /mid cap /small cap funds, thematic & sectoral funds or based on risk appetite like aggressive or conservative funds, funds that aim to provide income with modest growth or those that take big risks in the search for returns. You can even buy hybrid funds with combination of stocks and bonds in the same fund or Index Funds & ETF’s .


What is KYC?

KYC is an acronym for ‘Know Your Customer’ and is a term used for customer identification as a part of account opening process with any financial entity. KYC establishes an individual’s identity, address through relevant supporting documents such as prescribed photo id (e.g., PAN card), address proof and In-Person Verification (IPV). KYC compliance is mandatory under the Prevention of Money Laundering Act, 2002 and rules framed there under, read with the SEBI Master Circular on Anti Money Laundering (AML) Standards/ Combating the Financing of Terrorism (CFT) /Obligations of Securities Market Intermediaries.
W.e.f January 1, 2016 any subscription whether fresh, additional investment, or switch shall not be permitted by the Asset Management Companies(AMCs) if the KYC status of PAN for Mutual Funds is not updated as ‘KYC Registered-New KYC’.
With effect from January 1, 2011, all categories of investors, irrespective of amount of investment in Mutual Funds are required to comply with KYC norms under the Prevention of Money Laundering Act 2002 (PMLA) for carrying out the transactions such as new/ additional purchase, switch transactions, new SIP/ STP/ DTP registrations received from effective date i.e. January 1, 2011.


What is SIP?

Systematic Investment Plan (SIP) is an investment plan (methodology) offered by Mutual Funds wherein one could invest a fixed amount in a mutual fund scheme periodically, at fixed intervals – say once a month, instead of making a lump-sum investment.
The SIP instalment amount could be as little as Rs 500 per month. SIP is similar to a recurring deposit where you deposit a small /fixed amount every month.
Common sense suggests that ‘buying low and selling high’ is perhaps the best way to get good returns on your investments. But this is easier said than done, even for the most experienced investors. There are many factors at play when it comes to any market - debt or equity, and all of them are inextricably linked.
SIP is a simpler approach to long term investing is disciplining and committing to a fixed sum for a fixed period and sticking to this schedule regardless of the conditions of the market
STARTING EARLY PAYS WELL
To get the best out of your investments, it is very important to invest for the long-term, which means that you should start investing early, in order to maximize the end returns.
Let’s understand this better through an illustration –
Let's assume that two friends, both aged 25, decide to invest Rs 2000 every month for a period of five years and earn 8% p.a. on a monthly compounding basis. The only difference is that while one starts investing promptly at the age of 25 itself, the other starts investing 10 years later at the age of 35 years. Both decide to hold on to their investments till they turn 60. So while both of them would accumulate principal investment of Rs.1.2 lakh over a period of five years, the investment of the person who started early at the age of 25 appreciates to over Rs. 14 lakh, the investment of the second person who started later grows to only about Rs. 6 lakh.
Thus, you can clearly see the difference between the two and the clear advantage of investing early. So go ahead. Start investing through SIP today itself.

Mutual Funds Offered Through AU Small Finance Bank

At this point of time we offer the various schemes of the following fund houses :

Sr.No AMCs
1 AXIS ASSET MANAGEMENT COMPANY LIMITED
2

BARODAASSET MANAGEMENT COMPANY LTD

3

BIRLA SUN LIFE MUTUAL FUND

4

CANARA ROBECO ASSET MANAGEMENT COMPANY LTD.

5

DSP BLACKROCK INVESTMENT MANAGERS LTD.

6

EDELWEISS ASSET MANAGEMENT LIMITED

7

FRANKLIN TEMPLETON MUTUAL FUND.

8

HDFC AMC LTD.

9

ICICI PRUDENTIAL ASSET MANAGEMENT COMPANY LTD

10

IDFC ASSET MANAGEMENT CO.PVT. LTD.

11

KOTAK MAHINDRA AMC LTD.

12

L and T INVESTMENT MANAGEMENT LIMITED

13

MIRAE ASSET GLOBAL INVESTMENTS (INDIA) PVT. LTD.

14

MOTILAL OSWAL ASSET MANAGEMENT COMPANY LIMITED

15

NIPPON LIFE ASSET MANAGEMENT Ltd.

16

PRINCIPAL MUTUAL FUND

17

SBI FUNDS MANAGEMENT PVT.LTD

18 SUNDARAM ASSET MANAGEMENT COMPANY LTD
19

TATA ASSET MANAGEMENT LTD.

20

UTI ASSET MANAGEMENT COMPANY LTD.



Disclosure Of Mutual Funds’ Commissions

For Commission Disclosure Click Here 


Customer Satisfaction Survey

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Customer Grievance Process:

Contact Helpline – 180012001200 or mail at customercare@aubank.in

FOR INVESTMENT CALL US @180012001200

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.



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