Gone are the days when the only investment options available on the market were stock and bonds. In the current times, people get a wide variety of investment options such as gold, real estate, insurance, fixed deposits, public provident fund, and most importantly, mutual funds. Of course, everyone wants to invest in the product that could help them get the best ROI. Each investment product comes with its own risk, rewards, and limitations. However, if you are looking for a diversified and professionally handled investment product; you should definitely try mutual funds investment.

A mutual fund can be defined as the investment product in which several investors from a variety of disciplines pool their money into a professionally handled investment. The question is, how mutual funds investment is different from the stock, bonds, real estate, and other investment products? Are there any exclusive benefits the investors get from such investment security type? What amount of capital do individuals need in order to become qualified for mutual funds investment? If you are searching for answers to these questions, you have come to the right place! In this post, we will discuss the major benefits of mutual funds investment. Read on:


Unlike stock traders, you don’t need to be an expert investor in order to become a successful investor in mutual funds. Perhaps, this is why; the mutual fund is often recommended to the beginners who are planning to make an investment but possess little to no knowledge of financial statements, economics, and financial markets.

Smaller Capital Cost

If you have already invested in stocks, you would know the amount of capital an individual need in order to develop their portfolio of stocks. Fortunately, you don’t need to invest a large amount of capital to diversify your stock portfolio. As mutual funds involve the pooling of money, different investors can get the benefit of stock diversification without actually having to invest a significant amount of capital. The good news is investors can purchase units of diversifying equity funds at just 5k investment.

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Economies of Scale

As securities are usually purchased and sold in a large volume in mutual funds, you can expect the transaction cost to be reasonable. In fact, the transaction fee per unit is much lesser than what investors may incur if they purchase and sell the investment products with the help of a stockbroker.

Variety of Products

The best part about mutual funds is they offer a wide range of investment products that help them achieve their investment goals while minimizing their risk. Some of the common products of mutual funds are equity funds, income funds, liquid funds, monthly income plans, balanced plans, and the list goes on.

Different modes of Investment

In order to bring flexibility in investment, mutual funds provide the investors with a wide variety of investment modes and withdrawal options. Unless you want it, you don’t have to make the payment in a lump sum. Some common plans of investment and withdrawal in mutual funds are:

  • Systematic transfer plans
  • Systematic withdrawal plans
  • One time or lump sum payment
  • Systematic investment plans
  • Switches from one plan to another,

And so on. If you want to get the benefits of compounded returns options, it is worth investing in the growth option of mutual funds. On the other hand, the dividend option is the ideal mutual fund investment product for individuals who want regular profits from their investment. It is important to note that no other forms of investment products, apart from mutual funds, can offer such a wide range of investment and withdrawal modes.

Also Read: Major Differences Between Online and Offline Trading

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It is, therefore, important to learn both the pros and cons of intraday trading to get a better idea of how this market works and how exactly you can grow your money. In this post, we will walk you through a few advantages and disadvantages of intraday trading. So, keep reading to learn more.

• Beware of fixed/guaranteed/regular returns/ capital protection schemes. Brokers or their authorized persons or any of their associates are not authorized to offer fixed/guaranteed/regular returns/ capital protection on your investment or authorized to enter into any loan agreement with you to pay interest on the funds offered by you. Please note that in case of default of a member claim for funds or securities given to the broker under any arrangement/ agreement of indicative return will not be accepted by the relevant Committee of the Exchange as per the approved norms.
• Ensure that pay-out of funds/securities is received in your account within 1 working day from the date of pay-out.
• Be careful while executing the PoA (Power of Attorney) – specify all the rights that the stock broker can exercise and timeframe for which PoA is valid. It may be noted that PoA is not a mandatory requirement as per SEBI / Exchanges.
• Register for online applications viz Speed-e and Easiest provided by Depositories for online delivery of securities as an alternative to PoA.

• Do not keep funds idle with the Stock Broker. Please note that your stock broker has to return the credit balance lying with them, within three working days in case you have not done any transaction within last 30 calendar days. Please note that in case of default of a Member, claim for funds and securities, without any transaction on the exchange will not be accepted by the relevant Committee of the Exchange as per the approved norms.

• Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your broker settles your account and, in any case, not later than once in 90 days (or 30 days if you have opted for 30 days settlement). In case of declaration of trading member as defaulter, the claims of clients against such defaulter member would be subject to norms for eligibility of claims for compensation from IPF to the clients of the defaulter member. These norms are available on Exchange website at following link: NSE, MCX

• Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin/ collateral MUST remain in the account of the client and can be pledged to the broker only by way of ‘margin pledge’, created in the Depository system. Clients are not permitted to place any securities with the broker or associate of the broker or authorized person of the broker for any reason. Broker can take securities belonging to clients only for settlement of securities sold by the client.

• Always keep your contact details viz. Mobile number/Email ID updated with the stock broker. Email and mobile number is mandatory and you must provide the same to your broker for updation in Exchange records. You must immediately take up the matter with Stock Broker/Exchange if you are not receiving the messages from Exchange/Depositories regularly.

• Don’t ignore any emails/SMSs received from the Exchange for trades done by you. Verify the same with the Contract notes/Statement of accounts received from your broker and report discrepancy, if any, to your broker in writing immediately and if the Stock Broker does not respond, please take this up with the Exchange/Depositories forthwith.

• Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the trading member, compare it with the weekly statement of account sent by broker and immediately raise a concern to the exchange if you notice a discrepancy.

• Please do not transfer funds, for the purposes of trading to anyone, including an authorized person or an associate of the broker, other than a SEBI registered Stock broker.

• Do not deal with unregistered intermediaries (who are not registered with SEBI/Exchanges).

Names and contact details of all Key Managerial Personnel including Compliance Officer

Sr. No.Name of the IndividualDesignationContact NumbersEmail Id
1 Charanpreet GillCEO/MD011-40345555admin@gillbroking.com
2 Charanpreet GillWhole Time Director011-40345555gillbroking@gmail.com
3 Charanpreet GillCompliance officer011-40345555compliance@gillbroking.com
4Manpriya GillDesignated Director-1011-40345555manngill04@gmail.com
5Kewal GillDesignated Director-2011-40345555fvwealth@gmail.com

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