Explore Mutual Funds

NAV (Net Asset Value) is the per-unit price of a mutual fund, calculated as: NAV = (Total Assets - Total Liabilities) / Total Number of Outstanding Units For example, if a fund has ₹10,00,000 in assets, ₹50,000 in liabilities, and 1,00,000 units, the NAV would be ₹9.5. NAV is updated daily based on the closing prices of the fund’s holdings

An AMC manages mutual fund schemes by pooling investor money and investing in various securities. Fund managers make investment decisions, handle compliance, and track fund performance. AMCs charge an expense ratio for management and operational costs. They are regulated by SEBI to ensure transparency. Top AMCs include SBI MF, ICICI MF, HDFC MF, and Axis MF.

The expense ratio is the annual cost of managing a fund, expressed as a percentage of AUM. For example, a 1.5% expense ratio means ₹1.5 is charged annually per ₹100 invested. SEBI sets limits: equity funds can charge up to 2.25%, while debt funds have a 2.0% cap. A lower expense ratio helps maximize investor returns.

• Absolute Return: Simple percentage change in NAV over time.
• CAGR (Compound Annual Growth Rate): Annualized return accounting for time.
• TWRR (Time-Weighted Rate of Return): Adjusts for multiple cash flows but ignores size.
• XIRR (Extended Internal Rate of Return): Considers both cash flow timing and size, offering the most comprehensive measure.

Exit load is a fee charged if investors redeem units before a specified period. For example, a 1% exit load on a ₹10,000 redemption means a ₹100 deduction. It discourages early withdrawals.

Select a fund based on:

• Investment Horizon: Equity funds for long-term goals (5+ years), debt/hybrid for shorter periods.
• Performance vs. Benchmark: Active funds should consistently outperform; passive funds should have low tracking error.
• Expense Ratio: Compare within the same category.
• Risk Profile: Consider asset allocation and debt fund credit quality. Regular monitoring ensures alignment with financial goals.

A fund manager oversees investment decisions, portfolio allocation, and market analysis to achieve fund objectives.

• Active Managers: Aim to outperform benchmarks, leading to higher expense ratios.
• Passive Managers: Track indices, focusing on minimizing tracking error.

Yes, due to market fluctuations, fund misalignment with investor goals, or poor management. For instance, sectoral funds face higher risks if their sector underperforms. Staying invested through market downturns can mitigate losses.

• Expense Ratio: Management fees deducted annually.
• Stamp Duty & STT: 0.005% on purchases, 0.001% on redemptions (equity funds).
• Capital Gains Tax: 20% for short-term (<1 year), 12.5% for long-term (>1 year, above ₹1.25 lakh gains).
• Exit Load: If applicable, varies by fund.
• Dividend Taxation: Taxed as per the investor’s income slab.

Yes, a parent/guardian can invest on behalf of a minor. A separate account is required, with the guardian managing it until the child turns 18. On turning 18, KYC needs to be completed for account transfer. Returns are clubbed with the guardian’s income.

Yes, joint mutual fund accounts are allowed for shared financial goals. All holders must complete KYC, and transactions typically require approval from all account holders.

An NFO is the launch of a new mutual fund by an AMC, offered at a fixed price (usually ₹10 per unit). Similar to an IPO, it helps raise capital for investments. Investors should assess the fund’s theme and objectives before investing.

Both pool investor money, but ETFs trade on exchanges like stocks, with prices fluctuating throughout the day. Mutual funds are bought/sold at NAV, calculated at day’s end. ETFs are mostly passive and cost-effective, while mutual funds can be actively managed but carry higher fees. ETFs are also more tax-efficient.

SIP spreads investments over time, averaging costs and reducing market timing risks—ideal for steady earners. Lump sum investments suit those confident in market trends but carry higher risk.

Equity funds settle in T+3 days, debt funds in T+2 days. Processing may be delayed on weekends/holidays, with proceeds credited to your bank account.

Yes. A HUF can invest using its own PAN and bank account. The Karta, as the head, must complete non-individual KYC with documents like PAN, bank statement, and HUF declaration deed.

Tax depends on the fund type and holding period: Equity Mutual Funds

• Sold before July 23, 2024: STCG @ 15%, LTCG @ 10%
• Sold after July 23, 2024: STCG @ 20%, LTCG @ 12.5%

• Invested before April 1, 2023:
• Sold before July 23, 2024: LTCG (held > 36 months) @ 20% with indexation, STCG taxed per slab
• Sold after July 23, 2024: LTCG (held > 24 months) @ 12.5% with indexation, STCG taxed per slab
• Invested after April 1, 2023: Taxed as per income slab, regardless of holding period.