A mutual fund is a type of an investment fund that gathers money from investors to buy securities. Mutual funds are sold to the general public unlike hedge funds; also there is no legal definition of mutual funds. In India, mutual funds were first introduced in 1963 along with the Unit Trust of India (UTI) and it enjoyed a monopoly until 1987, after that there were several government controlled financial companies that started coming with their own funds.

In 1993 under the congress led government, the market was finally made open for private sectors. Mutual funds are regulated by the Security and Exchange Board of India (SEBI) and have a stringent regulatory framework. All Mutual fund companies should be registered under SEBI otherwise the business conducted by them is fraudulent.

Sundaram Mutual Funds

It was started by Sundaram Finance and was established on August 24th 1996. Sundaram Mutual Funds has been constituted as a Trust under the Indian Trust Act of 1882. The company is registered under SEBI and is owned by one of India's oldest Non-banking financial company (NBFC), Sundaram Finance. The key strengths of Sundaram Mutual Funds are -

> Transparent and Robust investment process

> Customer centric process

> Clearly defined products

> Managing investors' money like their own

> Emphasis on research

Here they identify an investment opportunity before it manifests into one and that is the key of developing a better financial health for their clients. Investing in mutual funds is a safe way of improving your financial health. Sundaram Mutual funds have specifically designed plans for wealth creation, tax savings, regular income, wealth creation and much more. Their customer centric approach helps the clients in understanding each of the plans better and you can always contact them if in doubt. Employees at Sundaram Mutual Funds treat the investors’ money as their own and handle it very carefully during the investment process. Also, the whole process is transparent and the products and plans are clearly defined so there is no chance of any foul play.

Investing in mutual funds is safe and is the simplest way of improving your finacial health.

(Article contributed by IIFL)