Mutual Funds

Professional fund management for everyone

What is it?

A mutual fund pools money from many investors and invests in stocks, bonds, or other assets. A professional fund manager makes the buy/sell decisions.

You own 'units' of the fund. The value of each unit (NAV) changes daily based on the fund's holdings.

How does it work?

1. Choose a fund — Equity (stocks), Debt (bonds), or Hybrid (mix)
2. Invest via SIP or lump sum — SIPs let you invest a fixed amount monthly (even ₹500)
3. Fund manager invests — Professionals manage the portfolio
4. NAV moves daily — Your returns depend on the fund's performance
5. Redeem anytime — Most funds are open-ended (except ELSS with 3-year lock-in)

Who should invest?

Almost everyone. Mutual funds come in many risk levels:

• Conservative: Liquid/debt funds for parking short-term cash
• Moderate: Balanced/hybrid funds for steady growth
• Aggressive: Small-cap/mid-cap funds for long-term wealth building

SIPs are ideal for salaried people — set it and forget it.

Tax treatment

Equity funds (held >1 year):

• LTCG: 12.5% on gains above ₹1.25L
• STCG: 20%

Debt funds (held >3 years):

• LTCG: 20% with indexation
• STCG: At your income tax slab

ELSS funds: ₹1.5L deduction under Section 80C (3-year lock-in).

How to start?

1. Complete KYC (PAN + Aadhaar — one-time, 5 min)
2. Pick a fund category matching your goal horizon
3. Start a SIP of 20-30% of your monthly savings
4. Review annually, don't check daily

Disclaimer: This is educational content, not investment advice. Returns and tax rules are indicative and subject to change. Consult a SEBI-registered advisor for personalized guidance.