Mutual and other Funds

61. ''The Mutual Fund concept is basically designed to take care of the interest of those investors who do not have adequate knowledge of the capital market''. What categories of investors are eligible to apply for the Mutual Fund?

Ans: The Offer Document lay down the categories of investor eligible to apply for the scheme's unit under the heading -Purchase of Mutual Fund.In general, the Resident Indian Adult Individuals, NRIs, companies ,corporate bodies registered in Indian are allowed to invest in India. Parents or guardians can apply on behalf of minor .Religious and Charitable Trust are allowed to invest under the provision of 11 (5) of the Income Tax Act,1961 read with Rule 17C of the Income Tax Rules,1962.The NRIs and foreign entities are allowed to invest in Mutual Fund subject to FIPB/RBI approval.