Frequently Asked Questions
A mutual fund pools money from investors to invest in diversified assets.
Mutual Funds are primarily three main types of Mutual Funds:
Equity Funds, which invest in equities (i.e. shares of companies). Different types of Equity Funds are thematic funds, tax-saving funds, sector funds, etc.
Fixed Income Funds, which invest in Fixed Income Securities such as Government Securities, Bonds, Money Market instruments, etc. Examples of Fixed Income Funds would be Liquid Funds, Short Term Corporate Debts, Dynamic Bonds, etc.
Hybrid Funds, which invest in both Equities and Fixed Income. Examples would be Aggressive Balanced Funds, Conservative Balanced Funds, Pension Plans, etc
Investing in Mutual Funds is easy and convenient. You can invest through both online and offline channels. For online methods, you can open a Mutual Fund account through the portals of fund houses or online platforms. Alternatively, you can contact a Mutual Fund distributor or visit the nearest Mutual Fund branch office/ Official Point of Acceptance of the RTA , for an offline account.
A Systematic Investment Plan (SIP) is an investment option offered by Mutual Funds, that allows you to invest a fixed amount in a Mutual Fund scheme at regular intervals rather than making a lump-sum investment.
You can invest in Mutual Funds with as little as Rs. 500/- through Systematic Investment Plan (SIP).
If you stop your SIP, your monthly amount will stop being deducted, and your current investments will remain in the Mutual Fund which you can redeem whenever you choose.
YMutual Funds are regulated by the governing body, Securities and Exchange Board of India (SEBI).
Every investment involves some degree of risk, although the nature and extent of that risk can vary. Different Mutual Funds carry different levels of risk. You can choose to invest in different schemes based on your risk appetite.
You can choose the Mutual Fund based on your risk tolerance and investment horizon for your goals.
In most Mutual Funds, you can withdraw your money whenever you wish, unless a lock-in period applies.The aspect of exit load shall also have to be considered.