Mutual Funds FAQs

A mutual fund is a pool of money managed by a professional Fund Manager. It is a trust that collects money from a number of investors who share a common investment objective and invests the same in equities, bonds, money market instruments and/or other securities.

Yes! You can start investing with as little as ₹500 per month through a Systematic Investment Plan (SIP). This allows anyone to start building wealth without needing a large capital.

SIP stands for Systematic Investment Plan. It is a mode of investing in mutual funds where you invest a fixed sum regularly (monthly/quarterly) in a mutual fund scheme. It instills financial discipline and helps in rupee cost averaging.

investments in Equity Linked Savings Schemes (ELSS) qualify for tax deduction under Section 80C of the Income Tax Act, up to a limit of ₹1.5 Lakhs per financial year. Long-term capital gains on equity funds (held for >1 year) are taxed at 10% for gains exceeding ₹1 Lakh.

Most open-ended mutual funds have no lock-in period and you can withdraw anytime. However, ELSS (Tax Saving) funds have a mandatory lock-in of 3 years.

Mutual funds are regulated by SEBI (Securities and Exchange Board of India) and follow strict guidelines. While market risks exist, professional management and diversification help mitigate risks over the long term.