All you wanted to know about mutual funds

There are quite of hosts of mutual fund companies out there. So, one might tend to get a bit lost as to which fund to choose, how to invest, what is a portfolio, how often do you check it.

In an interview with CNBC-TV18, Anish Kumar, southern regional head, Canara Robeco and Hemant Rustagi, head, Wise Invest Advisor, speak about investing in mutual funds. Here is a verbatim transcript of the exclusive interview on CNBC-TV18. Also watch the accompanying videos. Q: One of the foremost question that comes up regarding mutual funds is that they are less riskier, but the returns, when it comes to equities, might not match up. What do you have to say to that? Kumar: Mutual fund as an asset class is definitely less risky. It is one of the most transparent asset classes that we have today in the financial industry. Definitely when we talk about return, we should also take into account post taxation return. Based on all this, definitely mutual fund as an asset class has been less risky, well diversified. Instead of choosing from a few stocks, you have a choice, where fund manager works for you, he gets to invest and the stocks are selected after due process. A lot of research is done, when the stocks are selected, it is a full basket. What we are going to choose, typically which all sectors or it is a general overall economy, everything is told upfront. Overall, it is less risky. But when it comes to reward, basically what we say is reward doesn