Mutual funds report different types of asset breakdowns which help investors make investment decisions by comparing their risk appetite with the risks involved in a particular mutual fund. This breakdown information is provided in PDF format to the existing investors and funds can give this to transfer agents and dealers for advertisement purpose. The existing investors (advanced) may opt to come out of the fund or add more units to their portfolios based on the fund allocation changes by the mutual fund.
Mutual funds may give the following breakdown information
Country Breakdown
Currency Breakdown
Sector Breakdown
Asset Allocation Breakdown
Market cap Breakdown
Credit Rating Breakdown
I will explain all these breakdowns w.r.t risks involved and investment decisions in next articles.
Sathish Emmadi
Sathish Emmadi is a co-founder & editor at Lastbull.com. He is presently working in IT for one of the world’s top mutual fund companies. Handled multiple projects in BFSI (Banking,Financial Services and Insurance) domain. An Engineering Graduate from NITW.
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