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Are stocks in the mutual fund portfolio fixed?

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ET Online|
Dec 13, 2019, 01.17 PM IST
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L&T Mutual
I am new to investing in mutual funds. Could you please let me now if the portfolio of a mutual fund (that is, various stocks in it) changes over the course of time or is it fixed at the launch of the product?
Abhilash kumar


Equity mutual fund portfolios are not fixed. In fact, when you buy the scheme during its new fund offer (NFO) period, it has not started investing at all. That’s why you are getting it at a net asset value (NAV) of Rs 10 per unit. Once the money is collected, the fund manager would start investing it. After that the fund manager buys and sells stocks based on his market outlook and inflows/outflows. That’s the reason why we ask you to get the services of a professional fund manager when you invest in a mutual fund scheme.

If you are new to mutual funds, always seek the help of a mutual fund advisor before you start investing.
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