Mutual Funds Investment Online
A professionally managed, flexible, and diversified investment options, Mutual Funds have the potential to offer high returns in the long run. Different Mutual Funds suit different risk profiles. These funds combine money from several investors and invest the capital across securities such as stocks, bonds, money market instruments and other assets. Mutual Funds are managed by highly qualified and experienced professional fund managers.
The fundamental aim of investment in mutual funds is to garner maximum returns while minimizing risks through diversification.
Over the past years, mutual funds have gained huge credibility as a cost-effective, transparent investment option with a significant performance trail, even in the consistently changing market conditions. Each shareholder partakes proportionally in the gain or loss of the fund.
Mutual Funds Investments are the safest and easiest way to grow wealth. The fund manager’s knowledge and expertise is an important factor to consider while selecting the fund. All Mutual Fund Investments are highly transparent and are registered with the Securities Exchange and Board of India (SEBI)
Invest in Mutual Funds
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Why invest in Mutual Funds with Religare Broking?
- We trade in more than 5000 mutual fund schemes from over 30 trusted and secure mutual fund houses.
- Assured professional management aimed to secure the best possible investment results
- Disciplined and transparent management of funds by highly qualified professionals
- High liquidity of mutual fund holdings
Who should invest in Mutual Funds?
Whichever aggressive, conservative, or mid-range investor you may be, there is a mutual fund for each type. Hence, anyone can consider investing in mutual funds since they offer possible maximum benefits at a preferred risk scale.
Types of Mutual Funds
Equity Funds
These are the most popular forms of mutual fund investments that aim for wealth creation or capital appreciation. Equity mutual funds are ideal for investors who are young or at their peak earning stage, with a high-risk appetite fuelled by a desire to earn high returns. These funds allow investing in different sectors such as infrastructure, food & beverages, banking, etc.
Debt funds
Also known as fixed-income funds, these mutual funds are the second–most common form of investment in mutual funds. These include investments in government or corporate debt instruments. Debt funds have a low risk and low return outlook and are considered the perfect investment tool for conservative investors who aim for stabilised income at a low-risk scale. Debt funds are further classified based on their maturity and risk profile.
Equity linked savings scheme
Equity Linked Savings Scheme(ELSS) is a special type of equity mutual fund that offers tax benefits to investors. These funds have a lock-in period of 3 years and allow for an annual tax deduction of up to Rs. 1.5 lakh (under 80C of the Income Tax Act, 1961). ELSS also allows investors to spread their tax-saving investment across the year through smaller Systematic Investment Plans (SIPs).
Balanced or Hybrid Funds
As the name suggests, balanced or hybrid mutual funds are a mix of equity and debt investments. These funds allocate money across two asset classes to balance the risk and reward ratio of the overall portfolio. The typical ratio of investment is 60% equity and 40% debt; however, it can vary per the individual aim and risk level of the investor.
Money Market Funds
These focus on short-term, low-risk securities like Treasury bills and commercial paper. They are suitable for preserving capital while generating modest returns.
Commodity Funds
They invest in physical commodities like gold, silver, or agricultural products. They can be more volatile but offer diversification benefits.
Each type serves different financial objectives, so selecting one aligned with your goals and risk tolerance is crucial for a well-balanced investment portfolio.
Each type serves different financial objectives, so selecting one aligned with your goals and risk tolerance is crucial for a well-balanced investment portfolio.
Mutual funds Investment Options
Systematic Investment Plan (SIP)
Invest a fixed sum every week, month or quarter based on your convenience
Systematic Transfer Plan (STP)
Transfer money invested in one mutual fund to another automatically with this simple plan
Systematic Withdrawal Plan (SWP)
Withdraw money from your mutual fund scheme on a pre-set date at regular intervals
Lumpsum Investment
Lumpsum investment refers to deploying a substantial amount of money into a mutual fund or other investment vehicle all at once
Frequently Asked Questions
As per mutual fund definition, this is a financial pool of money with funds from various investors allocated across equity, debt, money market funds, and other asset classes. You can choose to invest systematically through SIPs (starting at Rs. 500) or make a lumpsum payment. Each fund is professionally managed and cautiously structured keeping the objective of capital gain at its core.
There is no fixed time to start investing in Indian mutual funds. A person can start investing with a minimum of Rs. 500 or can choose to contribute a lumpsum figure. The sooner one starts, the better are the chances of maximizing returns. Ideally, one should start young and take the maximum risk possible.
With long-term mutual fund investments, investors have a better chance of balancing out risks and rewards. The market reacts differently in a short-term and long-term scenario. In the former, the markets are more volatile, and hence, there is high risk; whereas, in the long-term the markets are more stable, allowing the investor to balance out the risk and maximize earnings. Moreover, long term investments also offer tax benefits and inflation-beating returns.
Mutual funds basics by themselves become mutual fund benefits. These include:
- Professional management of funds
- Diversification of portfolio
- Customized portfolios
- Transparent and well-regulated schemes
- Disciplined investment
- High liquidity
- Tax Advantages
An upfront commission is paid by the AMC to the distributor at the time when the sale is made and trail commission is paid manually as long as the funds remain with the AMC. The total expense ratio (TER) is a measure of the total cost associated with managing and operation a mutual fund.