Comparing Mutual Funds with other Safe Investment Options

Your mutual fund investment of ₹10,000 in 2 years will be

Why mutual funds “Sahi hai”

HIGHER RETURNS LOWER RISK

HIGHER RETURNS LOWER RISK

Better returns than FD & lower risk than single stock investment

DIVERSIFIED RISK

DIVERSIFIED
RISK

Your money doesn’t go into a single stock but a group of companies.

PROFESSIONALLY MANAGED

PROFESSIONALLY MANAGED

Stock market industry leaders manage your funds

Choose between monthly (SIP) or one time lumpsum investment

SIMPLE INVESTMENT PLAN (SIP)

Fixed monthly investment

Recommended for people who want to invest small amount of money and regularly.

LUMPSUM INVESTMENT

One - time investment

Recommended for people with huge disposable amount and have a higher risk tolerance.

Are you going crazy planning your taxes ?

We provide complete guidance based on your profile and requirement. After a deep study we recommend the right mutual funds for you.

planning your taxes

How do you get started

Ask

1

OPEN AN ACCOUNT

All it takes is 15 min, your PAN card, Aadhar card and bank statement.

Steps

2

ADD FUND TO YOUR ACCOUNT

Add money to your trading wallet and withdraw anytime.

Steps

3

LOGIN TO YOUR TRADING ACCOUNT

Login to your trading account through web app, mobile app, or desktop app.

Invest in any of the Top Mutual Funds Online in India

Aditya BirlaAxis BankDSP Mutual fundsHDFC Mutual fundsICICIKotak
L&T Mutual fundReliance Mutual fundSBI Mutual fundHDFC Mutual fundsICICIKotak
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What are Mutual Funds?

Mutual funds are a type of investment where many people pool their money together to buy a mix of stocks, bonds, or other securities. These funds are managed by professional money managers who make decisions about what to buy and sell, aiming to grow the money over time. When you invest in a mutual fund, you own a small part of the overall fund's investments, which can help spread out the risk.

Ways to Invest in Mutual Funds

SIP (Systematic Investment Plan): SIP is a method of investing a fixed amount of money regularly in a mutual fund at predetermined intervals, typically monthly or quarterly. With SIP, investors can invest small amounts regularly over time, which helps in averaging out the cost of investment and reduces the impact of market volatility. SIPs are suitable for investors looking to invest regularly and systematically over the long term.

Lumpsum Investment: Lumpsum investment involves investing a single, large amount of money in a mutual fund at once. Instead of investing regularly over time, investors put in a significant sum of money in one go. Lumpsum investments are suitable for investors who have a substantial amount of money to invest upfront or who want to take advantage of market opportunities at a particular time.

Types of Mutual Funds

There are several types of mutual funds, each designed to meet different investment objectives and risk tolerances. Some common types of mutual funds include:

Equity Funds: These funds invest primarily in stocks or shares of companies. They can focus on specific sectors, such as technology or healthcare, or they can be broadly diversified across different industries.

Bond Funds: Bond funds invest in fixed-income securities, such as government or corporate bonds. They typically provide steady income through interest payments and are generally considered lower-risk investments compared to equity funds.

Balanced Funds: Also known as hybrid funds, balanced funds invest in a mix of stocks and bonds to provide a balance between growth potential and income generation. They are suitable for investors seeking a middle ground between equity and bond funds.

Index Funds: These funds aim to replicate the performance of a specific market index, such as the S&P 500 or the FTSE 100. They offer broad diversification and typically have lower management fees compared to actively managed funds.

Money Market Funds: Money market funds invest in short-term, low-risk securities like Treasury bills and commercial paper. They are considered very safe investments and are often used as a temporary parking place for cash.

How to Invest in Mutual Funds Online

Here are the steps to invest in mutual funds online:

  • Create an Account: Sign up and create an account to provide personal and financial information for account verification and compliance purposes.
  • KYC (Know Your Customer): Complete the KYC process by submitting identity and address proofs, as mandated by regulatory authorities.
  • Research and Select Funds: Explore the available mutual funds and research their performance, investment objectives, fund managers, fees, and other relevant factors. Choose funds that align with your investment goals, risk tolerance, and time horizon.
  • Fund Selection: Once you've decided on the funds you want to invest in, select them on the interface. You may also have the option to invest in SIPs or lumpsum depending on your preference.
  • Provide Investment Details: Enter the investment amount, investment frequency (for SIPs), and other necessary details.
  • Payment: Make the payment for your investment using the available payment options such as net banking, debit card, or UPI.
  • Confirmation: After completing the investment transaction, you will receive a confirmation email or message with details of your investment.
  • Monitor Your Investments: Keep track of your mutual fund investments regularly. Monitor fund performance, review portfolio allocations, and make adjustments as needed based on changes in your financial goals or market conditions.

Benefits of Investing in Mutual Funds

Investing in mutual funds offers several benefits:

Diversification: Mutual funds pool money from multiple investors to invest in a diversified portfolio of assets such as stocks, bonds, and other securities. This diversification helps spread out investment risk, reducing the impact of individual security performance on the overall portfolio.

Professional Management: Mutual funds are managed by professional fund managers who make investment decisions based on extensive research and market analysis. Investors benefit from the expertise and experience of these professionals, who aim to optimize returns while managing risk.

Accessibility: Mutual funds are accessible to investors with varying levels of capital and investment knowledge. They offer entry points for investors with small amounts of money through features like Systematic Investment Plans (SIPs), allowing regular investments over time.

Liquidity: Mutual funds typically offer liquidity, allowing investors to buy or sell their units at the fund's Net Asset Value (NAV) on any business day. This liquidity provides flexibility for investors to access their funds when needed, unlike certain other investment options with lock-in periods.

Convenience: Investing in mutual funds can be done conveniently through online platforms or financial advisors, making it accessible for investors to manage their investments from anywhere at any time.

Cost Efficiency: Mutual funds often benefit from economies of scale, allowing investors to access a diversified portfolio at a lower cost compared to directly investing in individual securities. Additionally, with the rise of low-cost index funds and exchange-traded funds (ETFs), investors can further reduce investment expenses.

Transparency: Mutual funds provide regular updates on their performance, portfolio holdings, and fees to investors. This transparency helps investors make informed decisions and monitor their investments effectively.

Tax Efficiency: Certain types of mutual funds, such as equity-linked savings schemes (ELSS) and debt funds, offer tax benefits under the Indian tax laws. Additionally, capital gains from mutual fund investments held for the long term may be taxed at lower rates compared to other forms of investment income.

FAQs

What is a mutual fund?
How do mutual funds work?
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What are the different types of mutual funds?
What should I consider when investing in mutual funds?
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Can I open mutual fund account online?
How are Mutual Fund Returns Calculated?
Can I withdraw money from mutual funds anytime?
Can I Invest in Mutual Funds for Retirement?