1. Features of mutual fund
Micro SIP/Chota SIP
Feature of Mutual Fund
Invest as low as Rs 100/- in Mutual Fund Companies
Top Mutual Fund Companies offer its investors an option to invest extremely small amounts such as Rs
100/-, Rs 500/-, Rs 1000/- each month depending on individual’s capacity into many of its mutual fund
schemes.
Flexibility of Dates
Features of Mutual Fund
Ease of investing on convenient dates
Investor can invest in top Mutual Fund Scheme on their choice of dates. Many large Mutual Fund
companies offer multiple dates for investing into its top performing mutual fund schemes. E.g Few dates
would be 1st, 5th, 10th, 15th, 25th of each month. This makes regular investments on salary dates
possible.
Register Multiple Bank Accounts
Feature of Mutual Fund
Can I have more than one registered bank account linked to my Fund Folio? – Yes, you can.
As a Mutual Fund investor you can register upto 5 different bank accounts in your folio. So in case if you
have to close or transfer any one of the accounts the other can be utilised.
Benefit of Mutual Fund: People who need to change their work location or move into new city but the
old bank does not have AT-PAR Cheque clearing facility OR old bank does not have Core Banking
enabled so cannot accept cheques drawn on different branch.
Top-up Facility for Mutual Funds
Feature of Funds
Happy with your fund performance, increase your payment amount
Apart from regular payments investors can also invest via top-up facility. The amount of SIP can be
increased at fixed intervals. The Top-up amount has to be in multiples of Rs 500/- depending upon fund.
The frequency is fixed at Yearly and Half-Yearly Basis
Features of capital market
Capital Formation : Capital market helps in capital formation. Capital formation is net addition to the
existing stock of capital in the economy. Through mobilization of ideal resources it generates savings;

2. the mobilized savings are made available to various segments such as agriculture, industry, etc. This
helps in increasing capital formation.
Speed up Economic Growth and Development : Capital market enhances production and productivity in
the national economy. As it makes funds available for long period of time, the financial requirements of
business houses are met by the capital market. It helps in research and development. This helps in,
increasing production and productivity in economy by generation of employment and development of
infrastructure.
Proper Regulation of Funds : Capital markets not only helps in fund mobilization, but it also helps in
proper allocation of these resources. It can have regulation over the resources so that it can direct funds
in a qualitative manner.
Continuous Availability of Funds : Capital market is place where the investment avenue is continuously
available for long term investment. This is a liquid market as it makes fund available on continues basis.
Both buyers and seller can easily buy and sell securities as they are continuously available. Basically
capital market transactions are related to the stock exchanges. Thus marketability in the capital market
becomes easy.
Advantages…
Advantages Of Mutual Fund
Diversification
One rule of investing, for both large and small investors, is asset diversification. Diversification involves
the mixing of investments within a portfolio and is used to manage risk. For example, by choosing to buy
stocks in the retail sector and offsetting them with stocks in the industrial sector, you can reduce the
impact of the performance of any one security on your entire portfolio. To achieve a truly diversified
portfolio, you may have to buy stocks with different capitalizations from different industries
and bonds with varying maturities from different issuers. For the individual investor, this can be quite
costly.
By purchasing mutual funds, you are provided with the immediate benefit of instant diversification and
asset allocation without the large amounts of cash needed to create individual portfolios. One caveat,
however, is that simply purchasing one mutual fund might not give you adequate diversification - check
to see if the fund is sector orindustry specific. For example, investing in an oil and energy mutual fund
might spread your money over fifty
Economies of Scale
The easiest way to understand economies of scale is by thinking about volume discounts; in many
stores, the more of one product you buy, the cheaper that product becomes. For example, when you
buy a dozen donuts, the price per donut is usually cheaper than buying a single one. This also occurs in
the purchase and sale of securities. If you buy only one security at a time, the transaction fees will be
relatively large.

3. Mutual funds are able to take advantage of their buying and selling size and thereby reduce transaction
costs for investors. When you buy a mutual fund, you are able to diversify without the
numerous commission charges. Imagine if you had to buy the 10-20 stocks needed for diversification.
The commission charges alone would eat up a good chunk of your savings. Add to this the fact that you
would have to pay more transaction fees every time you wanted to modify your portfolio - as you can
see the costs begin to add up. With mutual funds, you can make transactions on a much larger scale for
less money.
Divisibility
Many investors don't have the exact sums of money to buy round lots of securities. One to two hundred
dollars is usually not enough to buy a round lot of a stock, especially after deducting commissions.
Investors can purchase mutual funds in smaller denominations, ranging from $100 to $1,000 minimums.
Smaller denominations of mutual funds provide mutual fund investors the ability to make periodic
investments through monthly purchase plans while taking advantage of dollar-cost averaging. So, rather
than having to wait until you have enough money to buy higher-cost investments, you can get in right
away with mutual funds. This provides an additional advantage - liquidity.
Liquidity
Another advantage of mutual funds is the ability to get in and out with relative ease. In general, you are
able to sell your mutual funds in a short period of time without there being much difference between
the sale price and the most current market value. However, it is important to watch out for any fees
associated with selling, including back-end load fees. Also, unlike stocks and exchange-traded
funds (ETFs), which trade any time during market hours, mutual funds transact only once per day after
the fund's net asset value (NAV) is calculated.
Professional Management
When you buy a mutual fund, you are also choosing a professional money manager. This manager will
use the money that you invest to buy and sell stocks that he or she has carefully researched. Therefore,
rather than having to thoroughly research every investment before you decide to buy or sell, you have a
mutual fund's money manager to handle it for you.
Advantages of Capital Market
They are not a fixed cost for the enterprise - as already pointed out, dividends do not have to be paid
on a specific
date, any more than the principal matures at a specified moment. The cost only appears if the
company makes a
profit, in the form of profit distribution. Consequently, this model of financing is considerably more
stable and less

4. risky for the company.
There is no maturity term - as a rule, investments in shares are investments in permanent capital that
cannot be
withdrawn and whose return from the company cannot be requested. In this sense, there is an
advantage for the
company, which has no obligation to return or pay, if it has business problems or negative financial
results.
It is fresh capital that improves the credit rating - by issuing shares, a company acquires new, fresh,
permanent
capital that strengthens its business position, making it stable. As new capital enters the company, its
leverage
improves and debt indicators decrease, improving its credit rating and opening up new possibilities
for financing
through debt instruments.
Easier sale - a good and stable company can sell shares far more easily than bonds, since the market is
wider. A
well-developed secondary market opens up possibilities for investors to acquire both dividends and
capital gain
and to liquidate their capital fast through the financial market.
Higher yield - due to the greater risk of investing in shares, investors obtain a higher yield, which is,
however, less
favorable from the issuer's viewpoint, as they have higher financing costs. As noted above, as well as
dividends, the
investor can see capital gain in the form of higher share prices.
Ownership rights - from the investor's viewpoint, investment in ownership instruments allows active
participation
in managing the company, as well as voting rights at AGM. This is a disadvantage from the issuer's
point of view,
since it means "dilution" for them.