An investor education initiative by JPMorgan Asset Management India Private Limited.

JPMorgan Chase & Co. or its affiliates and/or subsidiaries (collectively J.P. Morgan) do not warrant the completeness or accuracy of the details provided in the quiz and accepts no liability arising from the use of the information contained in the quiz. These materials have been provided to you for information purposes and for creating awareness only and should not be relied upon by you in evaluating the merits of investing in any securities or products mentioned herein. They are not intended as an offer or solicitation for purchase or sale of any financial instrument in any jurisdiction with respect to the purchase or sale of any product. The information contained in the quiz should not be consumed as an investment advice.

The opinions about any products herein do not take into account individual client circumstances, objectives, or needs and are not intended as recommendations of particular securities, financial instruments or strategies to particular clients. The recipient of this quiz must make its own independent decisions regarding any securities or financial instruments mentioned herein. The result of the test does not guarantee your knowledge about the products being offered by mutual funds.

In some products, there might be risk of losing the principal. Diversification does not guarantee investment returns and does not eliminate the risk of loss. As an investor you are advised to conduct your own verification and consult your own financial advisor before investing.

Tax implications are different based on the products and various other factors. J.P. Morgan accepts no liability with respect to the investment decision being taken. Please consult your Tax Advisor before investing.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Hello everyone. Welcome to ALPHABET. I am Jitin Gulati and together we are figuring out the world of mutual funds.

We’ve gone through four chapters so far, discussing the basics of mutual funds. What makes mutual funds an interesting investment option? That’s what we’re about to understand.

Low cost:

Multiple individuals come together and pool their money to invest in a mutual fund. Mutual funds buy and sell large amount of securities at a time, this reduces transaction cost. Therefore, investors gain on account of low transaction costs.

This makes mutual funds a relatively lower cost investment option.

Liquidity:

If you are in need of money, you can easily redeem your units at any point of time from an open-ended scheme or sell them on the stock exchange for a close-ended scheme. This makes mutual funds a fairly liquid form of investment.

Diversification

Mutual funds allow you to invest across a variety of equity and debt securities with an amount as little as 1000 rupees. With this diversification, the investor is less likely to lose money on all the investments at the same time. Simply put, think of investing in a mutual fund as joining a film club that screens different kinds of films that you can enjoy across different genres and languages for a fixed amount. Even if you end up watching a couple of bad movies, you even those out with the good ones.

Transparency

Because the Mutual Fund Industry is regulated and monitored by SEBI, you have access to the details of where & how much money is being invested and how the fund is performing, etc on a periodic basis.

Professional Management

Qualified and experienced professionals manage your investment in a mutual fund. Their investment decisions are based on relevant research and investment objectives of the Mutual Fund.

To know more about this topic, download the PowerPoint presentation from www.jpmalphabet.com . For answers to any queries related to this topic you can contact our panel of Alpha Scholars on this website.

For now, it’s good bye from me, Jitin. Until our next session, stay smart, invest smart.