Is it better to buy mutual fund before or after dividend?

Mutual funds pay distributions through dividends or capital gains. With either method, a distribution lowers the net asset value. Buying a fund right before it pays a dividend triggers taxes that you must pay before you can reinvest, causing a loss.

How do you know if a mutual fund is regular or direct?

In your CAS, there is a field called Advisor, and if that field is filled with “ARN” followed by a number code, then it is definitely a Regular Mutual Fund. In the same Advisor field if you find values like Direct / 0000000000 / INA100009859, then it is a Direct Mutual Fund.

Can AMC run away with money?

So, by looking at the structure and regulations which a mutual fund company has to abide by, we can say with 100\% surity that your investment in a mutual fund is safe and no fund will run away with your money.

What if AMC shuts down?

In the case of a Mutual Fund company shutting down, either the trustees of the fund have to approach SEBI for approval to close or SEBI by itself can direct a fund to shut. In such cases, all investors are returned their funds based on the last available net asset value, before winding up.

Should I buy a mutual fund at the end of the year?

Buying mutual funds between now and the end of the year could trigger an unnecessary tax bill. Sometime in December, many funds pay out dividends and capital gains that have built up during the year, and the payout goes to investors who own shares on what’s known as the ex-dividend date.

What are the prerequisites for investing in mutual funds?

KYC – a pre-requisite before investing in mutual funds. Before investing in a mutual fund scheme, whether through online mode or via conventional paper based mode, one must first complete the KYC process by filling up the prescribed KYC form.

How to become a mutual fund distributor in India?

A Mutual Fund Distributor may be an individual or a non-individual entity, such as bank, brokering house or on-line distribution channel provider. Register with Association of Mutual Funds in India (AMFI ) and obtain AMFI Registration Number (ARN).

How can I invest in mutual funds?

One may also invest either online mode or via conventional paper based mode through MF Utilities Pvt. Ltd. (MFU) – a technology based shared service platform for MF transactions promoted by the mutual fund industry in respect participating mutual funds. For more information please visit www.mfuindia.com

How can I buy mutual funds units in India?

One can also buy mutual funds units through NSE – MFSS and BSE – StAR MF just like a company stock. To avail this facility, one must complete a one-time online registration with NSE or BSE, as the case may be. For more information on NSE – MFSS and BSE – StAR MF, please visit www.nseindia.com / www.bseindia.com