Mutual funds are among the most popular investment choices in India. As of June 2019, the average assets under management (AuM) of the whole mutual fund (MF) industry were an incredible Rs. 24.25 trillion, more than four times the Rs. 5.83 trillion in 2009.
About Mutual Fund
As a financial enthusiast, are you particularly interested in investing in mutual funds?
Become a mutual fund distributor with CSC right now to start making money in the mutual fund market! The mutual fund industry has grown rapidly during the last 20 years in terms of the number of participants pooling their assets, the schemes created, and the assets managed. However, when they first enter the market, not all investors possess strong market expertise or the ability to evaluate and forecast the market.
CSC Mutual Fund Advantage
-
Security
- 100% Safe and trusted by over a million Indians
-
Existing Folio Mapping
- No additional paperwork required!
-
Quick SIP Registration
- Register a new SIP within a minute
- Digital Mandate registrations
-
Single Family Login
- For multiple investors of same Family
- Manage transactions of your Family
-
Multiple Payment Modes
- Debit Card, Netbanking
- Offline methods (Cheque)
- Transact using Mandate
-
Convenience
- 24x7 availability - Paperless Transaction
- Instant Redemption
- Social Login for Easy access
- Digital KYC
Benefits of Investing in Mutual Funds
-
Portfolio Diversification
Getting a diversified portfolio with a variety of equity and other options is one of the main benefits of investing in mutual funds. A mutual fund may have proportionate exposure to different financial instruments, such as stocks, debt, or other asset classes, such as gold, real estate, etc., depending on the scheme's goal.
As a result, the risk is distributed throughout several asset types. Therefore, your investment portfolio can still attempt to balance even if one asset type performs poorly in unfavourable market conditions.
-
Liquidity
In case of any emergency, you can easily redeem the units of your mutual funds. Based on the type of scheme, the redemption amount is usually credited to your bank account within 3-4 business days from the date of redemption.
In the case of liquid funds, the amount is credited on the next business day. However, you may be charged an exit load if you redeem your equity or debt funds before the specified period in the SID (Scheme Information Document) of the mutual fund.
-
Professional Management
Mutual funds are managed by professional fund managers who closely watch the markets and make constant investment decisions based on the fund's stated objective.
Therefore, you don't have to research and pick the stocks once you invest in mutual funds.
-
Investment Flexibility
The flexibility that mutual funds provide is one of its main advantages.
You have the option of making a sizable initial investment or making smaller, more frequent investments (as little as Rs 500 per month) through a Systematic Investment Plan (SIP).
-
Low Cost
Investors pay a nominal fee known as the expense ratio for mutual funds.
Operating costs like management, administration, etc., as well as other charges, are covered by the expense ratio.
-
Properly Regulated
The mutual fund industry is governed by the Securities and Exchange Board of India (SEBI).
The SEBI (Mutual Funds) Regulations, 1996, must be closely followed by mutual funds in order to provide transparency and investor wealth protection.
-
Ease of Purchasing
Online mutual fund purchasing and selling has greatly simplified investors' lives.
You are not required to go to any office of a mutual fund company. Simply go to the CSC digital seva portal and invest. The entire procedure is quick, simple, and convenient.
-
Income Tax Benefits
Both equity and debt funds carry their own unique tax benefits. For instance, while debt fund investors benefit from long-term capital gains, equity funds allow you to earn exempted returns up to Rs 100,000 in a financial year as long as you stay invested for 12 months or more.
Apart from this, there are ELSS (Equity Linked Savings Scheme) funds, which allow you to invest up to Rs 1,50,000 in a year and deduce the same from your taxable income.
Mutual Fund Returns Calculator
Disclaimer :
The above calculations and illustrations are indicative in nature and based on an assumed rate of return. Hence, the figures do not indicate or assure an actual amount/figure.
What Factors Should I Consider Before Investing in Mutual Funds?
Now that you’re aware of the features of mutual funds, it’s vital to consider certain factors before choosing to invest in them.
You won't reach your objectives if you only carefully save money from your source of income. To convert your savings into long-term wealth that can help you surpass inflation and accomplish your long-term objectives, you must invest your money carefully. Invest in your preferred mutual fund.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
-
Risk Appetite - Do you mind taking on more risk in exchange for a possible larger return, or are you overly concerned about the daily fluctuations in the market?
-
Fund’s Performance - Check out the mutual fund’s performance history, especially the past five years.
-
Investment Tenure - The possibility for long-term gains increases with the length of the investment tenure. Pick your investing period carefully and make appropriate fund investments.
The Best Forecast for Your Financial Future.
Knowledge Centre
Process flow on mutual fund transactions
Updation of Details in Mutual Fund:
You can change the following details in your portfolio by clicking on below links:
Latest video
-
Customer eKYC (Hindi)
-
Customer Onboarding (Hindi)
-
Mandate Registration and Systematic Registration (Hindi)
-
Purchase (Hindi)
-
Redemption (Hindi)
-
Switch (Hindi)
-
Customer eKYC (Eng)
-
Customer Onboarding (Eng)
-
Mandate Registration and Systematic Registration (Eng)
-
Purchase (Eng)
-
Redemption (Eng)
-
Switch (Eng)
frequently asked questions
-
A mutual fund is an investment vehicle that pools money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. A professional fund manager handles the portfolio on behalf of investors.
-
Mutual funds in India can be broadly classified into equity funds and debt funds. Equity mutual funds invest in stocks and equity-based securities, while debt funds invest in fixed income securities such as bonds, debentures, and commercial paper.
Equity investments are riskier than debt investments, but they offer better returns over the long term.
-
Mutual funds are broadly categorized in the following four types:
- Equity funds – These are types of mutual funds that invest in equity and equity related instruments with the objective of delivering reasonable returns over the long term.
- Debt funds – These are the mutual funds that invest in fixed-income securities with the objective of protecting the capital money and providing stable returns.
- Hybrid funds - Hybrid funds adopt a balanced approach and invest the corpus in a mix of debt and equity instruments.
- Solution-oriented funds–It primarily invest with a specific financial goal like education or retirement planning.
-
When you invest in a mutual fund, you buy shares in the fund. The value of each share (called the Net Asset Value or NAV) fluctuates based on the performance of the securities held by the fund. The returns you earn are a proportion of the total return of the fund relative to your investment.
-
NAV is the per-share value of the mutual fund, calculated by dividing the total value of the fund's assets (minus liabilities) by the number of outstanding shares. NAV is typically calculated at the end of each trading day.
-
The minimum amount depends on the policy of the AMCs and varies from one category to another and. The amount may vary from INR 100 to INR 5000 and higher.
-
Yes, many mutual funds offer the flexibility to invest as little as 500 rupees per month. This makes it accessible and convenient for a wide range of investors. One can harness the power of compounding by staying invested in mutual funds for the long term.
-
A mutual fund SIP is an investment option that allows investors to invest a certain amount in their chosen scheme at a regular interval. This eliminates the need for investors to time the market and offers a convenient and hassle-free way to invest.
-
Mutual Fund SIP offers following benefits:
- Instilling Financial Discipline
- Reduce the fear of volatility in the stock market
- Reduce the risk of not having investible surplus
-
A person who has financial goals can invest in a mutual fund scheme. Once he /she knowsthe risk appetite and preferred tenure for investment, he /she can choose the best mutual funds.
-
Mutual fund investing has several benefits:
- It offers diversification. Mutual funds pool money from several investors and invest the corpus across different asset classes.
- Mutual funds are professionally managed eliminating investors to actively manage their investments.
- Investments can be as low as INR 500, which makes it accessible to most individuals.
- Mutual fund schemes cater to different requirements of investors ensuring each individual can invest in one that suits their risk appetite and financial goals.
-
Returns on mutual funds are earned as capital gains or dividend. Capital gains are the profits made when the units are sold at a price higher than the purchase cost. If the performance is good with surplus cash, the AMC may distribute some portion of it to the investors as dividend.
-
All mutual funds have some level of risk, but certain mutual fund types can offer lower risks compared to others. Index funds and large-cap mutual funds are generally considered lower risk due to their focus on stable, well-established companies or passive tracking of market indices.
Debt funds also tend to be lower risk as they invest in fixed-income securities. Balanced or hybrid funds offer a mix of stocks and bonds, providing a balance between growth and stability. It's important to assess your own risk tolerance and investment goals before choosing a mutual fund.
-
Yes, most mutual fund investments can be withdrawn at any time provided if is an open-ended scheme. However, if the investment is in ELSS funds, the minimum lock-in period is three years and funds cannot be withdrawn during this time.
Additionally, some mutual funds may impose exit loads if you withdraw before a specified duration. It's advisable to check the terms and conditions of the specific mutual fund scheme for any applicable exit loads.
-
Yes, mutual fund returns are taxable in most situations:
- 15% tax – On an investment made in Equity oriented Mutual funds for less than 12 months
- 10% tax – On any investment that is made for more than 12 months on returns exceeding Rs. 1 Lakh
- As Per Tax Slab – If Fund’s exposure to stocks is less than 65% and holding period is less than 65%
If the investment period is more than 3 years, capital gains will be taxed at 20% post indexation benefit
-
The corpus of mutual funds is invested in a variety of market-linked assets. These market-linked products provide variable returns. Investments in mutual funds are susceptible to some market risk since the value of these underlying assets might fluctuate depending on the state of the economy.
-
For investors who want to diversify their holdings, mutual funds are a wise choice. An investor could lower the risk of their portfolio by investing in a variety of assets in order to maximize their return.
