Start your investment journey today and secure your financial future.
If you're new to mutual funds in India, you might feel overwhelmed by the vast array of information and investment options available. Simply put, a mutual fund is a collective investment scheme managed by a fund manager. When you invest in a mutual fund, your money is pooled with that of other investors and allocated to various assets like stocks, fixed income securities, money market instruments, and more, according to the fund's stated objectives. The profits generated by the fund are either distributed to investors or reinvested until redemption, based on the investor's preference, after deducting applicable fees and charges. These profits are reflected in the mutual fund's rate of return.
Equity mutual funds primarily invest in stocks and equity-related securities. These funds offer an attractive alternative to direct stock investment, as equities have the potential for long-term growth. Consequently, equity funds are ideal for long-term investors willing to take on higher risk for the opportunity to create wealth.
Debt funds focus on fixed-income securities, generating returns mainly through the accrual of interest income. These funds can also benefit from capital appreciation due to favorable changes in interest rates or improvements in credit quality, potentially enhancing overall returns for investors.
Many mutual fund companies provide solution-oriented schemes designed to meet specific financial goals, such as children's education or retirement planning. These schemes often come with a lock-in period of 5 years or until the child reaches a certain age or the investor retires, depending on the scheme's objective. This structure encourages investors to maintain their investments for the long term, reducing the likelihood of premature liquidation.
| Plan Type | Details |
|---|---|
| Direct Plan | No intermediary involved. Lower total expense ratio, resulting in a higher Net Asset Value (NAV) and returns. DIY (do-it-yourself) investment. |
| Regular Plan | Purchased through a mutual fund distributor. Higher total expense ratio due to distribution commissions, leading to lower NAV and returns. Financial advisor provides guidance on mutual fund options, assists with transactions, and monitors the portfolio. |
| Growth Plan | If you choose the growth option when investing in a mutual fund, your earned profits will be reinvested back into the scheme, helping to compound your investment over time. |
| IDCW Plan | If you select the Income Distribution cum Capital Withdrawal (IDCW) plan, your profits (dividends) will be distributed to you at predefined intervals. |
Research and select a fund that aligns with your financial goals and risk tolerance.
Fulfill the Know Your Customer requirements to verify your identity.
Transfer funds to purchase units of your chosen mutual fund.
Explore a full range of financial services, including mutual funds, PMS/AIF, startup funding, health and general insurance, business and retail loans, corporate finance, and life insurance. Our expert solutions help you manage wealth, protect assets, and achieve both personal and business financial goals.
