Mutual Funds
About Mutual Funds
Mutual Funds are one of the most trusted and accessible investment avenues for long-term wealth creation. By pooling investments across multiple securities, they offer diversification, professional fund management, and flexibility across market conditions.
Infinite Alpha simplifies mutual fund investing by focusing on goal-based planning, disciplined investing, and continuous monitoring—helping investors stay invested with confidence across market cycles.
Our Mutual Fund Solutions
Portfolios structured around clear life goals.
Focused on steady compounding over many years.
Optimised to improve post-tax investment returns.
Investments matched to your comfort with risk.
Disciplined investing through regular contributions.
Periodic adjustments to keep goals on track.
How We Select Mutual Funds
Our fund selection process is rigorous, research-driven, and focused on identifying funds that have demonstrated consistent performance across market cycles while aligning with your investment objectives.
We evaluate how the fund has performed across different market phases, not just in short-term rallies.
We study the experience, stability, and past decisions of the fund manager and the team behind the fund.
We assess whether the fund follows a clear, repeatable, and disciplined investment approach.
We analyse how the fund controls downside risk and behaves during volatile market periods.
We review the underlying holdings for quality, diversification, and alignment with the fund’s stated strategy.
We consider expense ratios and overall cost structure to ensure returns do not get eroded by fees.
We evaluate the fund house’s governance, research depth, and long-term track record.
Who Should Invest in Mutual Funds
Mutual funds are suitable for investors at various stages of their financial journey. Whether you’re starting out or looking to diversify, mutual funds offer accessible and flexible investment options.
Key Benefits of Investing with Infinite Alpha
Start Your Mutual Fund Journey with Confidence
What is a Mutual Fund?
An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by investment managers, who invest the fund’s capital and attempt to produce capital gains and income for the fund’s investors. A mutual fund’s portfolio is structured and maintained to match the investment objectives stated in the scheme information document.
What does a Mutual Fund do with investor`s money?
Anybody with an investible surplus of as little as a few hundred rupees can invest in mutual funds. The investors buy units of a fund that best suits their investment objectives and future needs. A Mutual Fund invests the pool of money collected from the investors in a range of securities comprising equities, debt, money market instruments etc. after charging for the AMC fees. The income earned and the capital appreciation realised by the scheme, are shared by the investors in same proportion as the number of units owned by them.
What is the Regulatory Body for Mutual Funds?
Why should I choose to invest in a mutual fund?
For a retail investor who does not have the time and expertise to analyze and invest in stocks and bonds, mutual funds offer a viable investment alternative.
This is because:
1. Mutual Funds provide the benefit of cheap access to expensive stocks
2. Mutual funds diversify the risk of the investor by investing in a basket of assets
3. A team of professional fund managers manages them with in-depth research inputs from investment analysts.
4. Being institutions with good bargaining power in markets, mutual funds have access to crucial corporate information which individual investors cannot access.
What are the advantages of investing in a Mutual Fund?
There are several benefits from investing in a Mutual Fund.
A. Small investments: Mutual funds help you to reap the benefit of returns by a portfolio spread across a wide spectrum of companies with small investments. Such a spread would not have been possible without their assistance. Professional Fund Management: Professionals having considerable expertise, experience and resources manage the pool of money collected by a mutual fund. They analyze markets and the economy to select good investment opportunities.
B. Spreading Risk: An investor with a limited amount of fund might be able to invest in only one or two stocks / bonds, thus increasing his or her risk. However, a mutual fund will spread its risk by investing in a number of sound stocks or bonds, across sectors, so the risk is diversified, along with taking advantage of the position it holds. Also in cases of liquidity crisis where stocks are sold at a distress, mutual funds have the advantage of the redemption option at the NAVs (Net Asset Values).
C. Transparency and easy access to information: Mutual Funds regularly provide investors with information on the value of their investments. Mutual Funds also provide complete portfolio disclosure of the investments made by various schemes and also the proportion invested in each asset type and clearly layout their investment strategy to the investor.
D. Liquidity: Closed ended funds have their units listed at the stock exchange, thus they can be bought and sold at their market value. Over and above this the units can be directly redeemed to the Mutual Fund as and when they announce the repurchase.Open ended funds, the units are available for subscriptions redemption on all business days on an ongoing basis.
E. Choice: The large amount of Mutual Funds offer the investor a wide variety to choose from. An investor can pick up a MF scheme depending upon his risk / return profile.
F. Regulations: All the mutual funds are registered with SEBI and they function within the provisions of strict regulation designed to protect the interests of the investor.
How do mutual funds diversify their risks?
Can mutual funds be viewed as risk-free investments?
What are the risks involved in investing in mutual funds?
What are the different types of Mutual funds?
On the basis of Objective
A. Equity Funds/ Growth Funds
Funds that invest in equity shares are called equity funds. They carry the principal objective of capital appreciation of the investment over the medium to long-term. The returns in such funds are volatile since they are directly linked to the stock markets. They are best suited for investors who are seeking capital appreciation. There are different types of equity funds such as Diversified funds, Sector specific funds and Index based funds.
B. Diversified funds
These funds invest in companies spread across sectors. These funds are generally meant for risk-taking investors who are not bullish about any particular sector.
C. Sector funds
These funds invest primarily in equity shares of companies in a particular business sector or industry. These funds are targeted at investors who are extremely bullish about a particular sector.
D. Index funds
These funds-invest in the same pattern as popular market indices like CNX Nifty Index and BSE Index. The value of the index fund varies in proportion to the benchmark index.
E. Tax Saving Funds
These funds offer tax benefits to investors under the Income Tax Act.Opportunities provided under this scheme are in the form of tax rebates u/s 88, saving in Capital Gains u/s 54EA and 54EB and deductions u/s 80C. They are best suited for investors seeking tax concessions.
F. Debt / Income Funds
These Funds invest predominantly in high-rated fixed-income-bearing instruments like bonds, debentures, government securities, commercial paper and other money market instruments. They are best suited for the medium to long-term investors who are averse to risk and seek capital preservation. They provide regular income and safety to the investor.
G. Liquid Funds / Money Market Funds
These funds invest in highly liquid money market instruments. The period of investment could be as short as a day. They provide easy liquidity. They have emerged as an alternative for savings and short-term fixed deposit accounts with comparatively higher returns. These funds are ideal for Corporates, institutional investors and business houses who invest their funds for very short periods.
H. Gilt Funds
These funds invest in Central and State Government securities. Since they are Government backed bonds they give a secured return and also ensure safety of the principal amount. They are best suited for the medium to long-term investors who are averse to risk.
I. Balanced Funds
These funds invest both in equity shares and fixed-income-bearing instruments(debt) in prescribed proportion. They provide a steady return and reduce the volatility of the fund while providing some upside for capital appreciation. They are ideal for medium- to long-term investors willing to take moderate risks.
What are open-ended and closed-ended mutual funds?
What is NAV?
How much return can I expect by investing in mutual funds?
What are the types of returns one can expect from a Mutual Fund?
Mutual Funds give returns in two ways – Capital Appreciation or Dividend Distribution.
A. Capital Appreciation : An increase in the value of the units of the fund is known as capital appreciation. As the value of individual securities in the fund increases, the fund`s unit price increases. An investor can book a profit by selling the units at prices higher than the price at which he bought the units.
B. Dividend Distribution: The profit earned by the fund is distributed among unit holders in the form of dividends. Dividend distribution again is of two types. It can either be re-invested in the fund or can be on paid to the investor.
How do I track the performance of the Fund?
What is a load?
The charge collected by a Mutual Fund from an investor for selling the units or investing in it.
When a charge is collected at the time of entering into the scheme it is called an Entry load. The entry load percentage is added to the NAV at the time of allotment of units. However SEBI has now prohibited charging entry load on mutual fund schemes. An Exit load is a charge that is collected at the time of redeeming or for transfer between schemes (switch). The exit load percentage is deducted from the NAV at the time of redemption or transfer between schemes.
Some schemes do not charge any load and are called “No Load Schemes”.
How does the concept of exit load work in case of unit redemptions?
Can an investor redeem part of the units?
What are the differences between close-ended mutual funds and ETFs?
Though Close-Ended Mutual Funds are listed on the exchange they have a limited number of shares and trade at substantial premiums or more often at discounts to the actual NAV of the scheme. Also, they lack the transparency, as one does not know the constitution and value of the underlying portfolio on a daily basis.
In ETFs, the numbers of units issued are not limited and can be created/ redeemed throughout the day. ETFs rely on market makers and arbitrageurs to maintain liquidity so as to keep the price in line with the actual NAV.