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Advantages of Mutual - Funds Guide by Hem Securities, India

Mutual Funds Advantages: Guide by Hem Securities, India Mutual funds are currently the most popular investment vehicle for the majority of investors but before investing in one its important to understand Mutual fund policy and it’s advantages. Mutual Fund an Overview : There are a variety of funds covering different industries and different asset classes available. Some of the advantages of this kind of investment include advanced portfolio management, dividend reinvestment, risk reduction, convenience, and fair pricing. Here’s a more detailed look at both the advantages of this investment strategy. Advantages of Mutual Funds There are many reasons why investors choose to invest in mutual funds with such frequency. Let’s break down the details of these benefits. Portfolio Management At Advanced Level When you buy a mutual fund, you pay a management fee as part of your expense ratio, which is used to hire a professional portfolio manager who buys and sells stocks, bonds, etc. This is a relatively small price to pay for getting professional help in the management of an investment portfolio. Dividend Reinvestment As dividends and other interest income is declared for the fund, it can be used to purchase additional shares in the mutual fund, therefore helping your investment grow. Risk Reduction (Safety) Reduced portfolio risk is achieved through the use of diversification, as most mutual funds will invest in anywhere from 50 to 200 different securities?—?depending on the focus. Several stock index mutual funds own 1,000 or more individual stock positions. Convenience and Fair Pricing Mutual funds are easy to buy and easy to understand. They typically have low minimum investments and they are traded only once per day at the closing net asset value (NAV). This eliminates price fluctuation throughout the day and various arbitrage opportunities that day traders practice. Important : As with any type of investment, the specifics of your budget, timeline and profit goals will dictate what the best mutual fund options are for you. For more details visit hemsecurities.com. Thank you for reading.
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ATTENTION INVESTOR:
1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.    2. Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.    3. Pay 20% upfront margin of the transaction value to trade in cash market segment.    4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs)( issued vide circular reference -- for NSE- NSE/INSP/45191 dated July 31, 2020 & NSE/INSP/45534 dated August 31, 2020 and for BSE - issued vide notice no. 20200731-7 dated July 31, 2020 & 20200831-45 dated August 31, 2020 and other guidelines issued from time to time in this regard.   5. Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month.     6.) Hem Securities Limited and Hem Finlease Private Limited are engaged in Client based and proprietary trading on various stock exchanges. Dear Clients, charges for Depository Services has been revised with effect from 29,08, 2020 and Revised Tariff Structure   7.) Prevent Unauthorized Transactions in your account- Update your mobile number/ E-mail ID with your stock brokers. Receive information of your transactions directly from Exchange on your mobile/ email at the end of the day.    8.) Please read the Risk Disclosure Document and Do's & Dont's prescribed by the Exchanges carefully before investing.    9.) KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.    10.) Prevent Unauthorized Transactions in your demat account - Update your Mobile Number with your stock brokers and Depository Participant. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat account directly from CDSL on the same day.   11.) No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account.   12.) Disclaimer: Hem Securities Limited and Hem Finlease Private Limited are engaged in Client based and proprietary trading on various stock exchanges.
ATTENTION INVESTOR:
1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.    2. Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.    3. Pay 20% upfront margin of the transaction value to trade in cash market segment.    4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs)( issued vide circular reference -- for NSE- NSE/INSP/45191 dated July 31, 2020 & NSE/INSP/45534 dated August 31, 2020 and for BSE - issued vide notice no. 20200731-7 dated July 31, 2020 & 20200831-45 dated August 31, 2020 and other guidelines issued from time to time in this regard.   5. Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month.     6.) Hem Securities Limited and Hem Finlease Private Limited are engaged in Client based and proprietary trading on various stock exchanges. Dear Clients, charges for Depository Services has been revised with effect from 29,08, 2020 and Revised Tariff Structure   7.) Prevent Unauthorized Transactions in your account- Update your mobile number/ E-mail ID with your stock brokers. Receive information of your transactions directly from Exchange on your mobile/ email at the end of the day.    8.) Please read the Risk Disclosure Document and Do's & Dont's prescribed by the Exchanges carefully before investing.    9.) KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.    10.) Prevent Unauthorized Transactions in your demat account - Update your Mobile Number with your stock brokers and Depository Participant. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat account directly from CDSL on the same day.   11.) No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account.   12.) Disclaimer: Hem Securities Limited and Hem Finlease Private Limited are engaged in Client based and proprietary trading on various stock exchanges.