FAQS

A mutual fund is an investment vehicle that pools money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other assets, managed by professional fund managers.

You can start by choosing a fund type (equity, debt, hybrid, etc.), completing KYC formalities, and investing either through a SIP (Systematic Investment Plan) or a lump sum amount via banks, AMCs, or online platforms.

The main categories include:

Equity Funds (invest in shares, higher risk & returns)
Debt Funds (invest in bonds, lower risk & returns)
Hybrid Funds (mix of equity & debt)
Index Funds/ETFs (track a market index)

Yes, mutual funds carry market-related risks. However, the risk varies with the type of fund. Equity funds are riskier than debt funds. Diversification and long-term investing help reduce risks.

SIP (Systematic Investment Plan) allows you to invest a fixed amount at regular intervals (monthly/quarterly), promoting disciplined investing and reducing the impact of market volatility.

Taxation depends on the type of fund and holding period.

Equity Funds: Short-term (less than 1 year) taxed at 15%; long-term (over 1 year) taxed at 10% (above ₹1 lakh gains).
Debt Funds: Taxed as per income slab if sold within 3 years; after 3 years, taxed with indexation benefits.

Yes, in open-ended mutual funds you can redeem your investment anytime. However, some funds may have an exit load if withdrawn within a specific period. Close-ended funds can only be redeemed at maturity.