How to sell funds
Mutual Funds depend primarily on individual agents and distributors who market their schemes to investors. Nowadays they are also marketing the systems directly.
The individual agents who sell mutual funds of the various systems to act as financial advisor for many investors. Therefore, they are necessary in order to clear various examinations prior to mediation. Many mutual funds prefer to dealwith sales agency as a single agent, as it is easier to manage. This distribution agencies with highly qualified executives in a position to better financial advice as a single agent to offer investors.
Nowadays, the sales and other employees of investment companies (direct approach of investors is especially high net worth individuals and corporate clients to sell) to different systems. Most of the sales of Mutual Fundsdone through other distribution than the distance from the market directly.
Investment Policies
Each mutual fund has a specific investment policy, which is described in the prospectus of the mutual fund's. A family of mutual funds will be managed by an asset management company. The Asset Management Company will collect the funds from investors and charge an administration fee for operating them. They allow investors to invest in the various marketSectors and switch assets across funds, while still benefiting from centralized record keeping.
The investment policy of the different types of funds are as follows:
• Equity Funds. They invest in stocks. They will think, but a 4% to 5% of their assets in money market securities to provide liquidity. Income Fund holds shares of companies that are in a higher dividend yield and growth are helping shares of companies that hold fast tocapital appreciation. Sector funds focus on a particular industry.
• Debt Funds. These funds invest in fixed-income securities. Different funds will concentrate on Treasury bills, corporate bonds, Mortgage-backed securities and other kinds of bonds. Some of the funds also specialize on maturity.
• Index Funds. Index funds buy shares that are included in a particular index in proportion to each share's representation in that index. Investing in index funds is a passive strategy because the investors need not do any security analysis.
• Money Market Funds. These funds invest in short-term low-risk instruments of the money market. Since the liquidity is high, some of the funds even offer cheque writing facilities to their investors.
Apart from these funds there are many different varieties of funds with unique investment Measures such as international funds that invest in different securities across the world, the balanced funds, without much risk of ongoing opportunities for growth and income funds and the flexibility to minimize depends on market timing.