Mutual Funds: Invest in Mutual Funds Online in India

What makes Mutual
Funds so popular?

Mutual Funds offer ease, diversification, and professional fund management. It helps you invest and build wealth over time irrespective of your financial expertise and investment size.

Why you should Invest in Mutual Funds?

Diversification

Enjoy a diversified portfolio of different stocks, bonds, or other securities to reduce investment risks without compromising on returns.

Liquidity

Buy and sell your Mutual Fund anytime with out any restriction for most of the funds

Growth

Invest in securities linked to market performance and grow your savings over time to create a suitable corpus for your goals.

Simplicity

You don’t need an in-depth understanding of the markets to invest. There are professionals for that. Just choose your fund and let experts manage your investments

Select The Right Type of Mutual Fund For You

Equity Fund

Seek stable returns with less volatility. Explore various equity funds below tailored to your investment horizon and preferences.

13 PRODUCTSKNOW MORE

Invest In Mutual Funds As Often As You Can

REGULAR INVESTMENT

SIP Investment

Systematic Investment Plan or SIP is a mode of investment offered by the mutual funds wherein you can invest a fixed sum at frequent intervals; such as monthly, quarterly, etc.

START SIP

ONE TIME INVESTMENT

Lump-Sum Investment

With the lumpsum investment, one invests a significant amount of money in any mutual fund scheme of their choice.

INVEST LUMPSUM

Investment amount

Years you want to invest for

Enter your expected rate of return (%)

Total Amount Invested

₹ 0

Expected Wealth Gain

₹ 0

Disclaimer: Projections/estimations is backtested using historical data.

TARGETED RETURN VALUE

INVESTMENT PERIOD

RETURNS

Total Amount Invested

₹ 0

Expected Wealth Gain

₹ 0

Disclaimer: Projections/estimations is backtested using historical data.

Invest Now for Your Goals

Long Term Plan

Own Property

Plan This Goal

Save up for a down payment on home loan
Higher down payment = lower home loan = lower interest outgo
Save affordably through SIPs
Choose a fund based on your investment horizon

Plan This Goal

Long Term Plan

Child Education

PLAN THIS GOAL

Save up for high education costs.
Equity funds can give long-term wealth creation
Choose solution-oriented funds for dedicated investments
Invest through SIPs or in a lump sum

PLAN THIS GOAL

Emergency Fund

PLAN THIS GOAL

Create an emergency fund for unforeseen contingencies
Choose liquid funds or short-term debt funds for liquidity
Protect your capital against volatility
Earn returns while enjoying instant redemptions

PLAN THIS GOAL

Early Retirement

PLAN THIS GOAL

Plan for early retirement with Mutual Funds
Choose equity or debt depending on your risk profile
Grow your corpus with compounding returns

PLAN THIS GOAL

Long Term Plan

Dream Vacation

PLAN THIS GOAL

Create a travel corpus for your dream vacation
Save affordably through SIPs
Choose short-term or long-term funds
Earn attractive returns to grow your corpus

PLAN THIS GOAL

Major Purchase

PLAN THIS GOAL

Plan and save ahead for a major purchase with Mutual Funds
Assess your investment horizon and choose relevant funds
Save regularly through SIPs and build a corpus
Diversify your investments for better returns at reduced risks

PLAN THIS GOAL

What to know before you invest in Mutual Funds?

Investment objective and risk tolerance

Identify your financial goals for which you want to create a corpus
Prioritize the goals to know your investment horizon
Estimate the corpus needed for each goal to know how much savings would be needed
Assess your risk profile, i.e., whether you like taking risks, are risk-averse or want risk in moderation

Fund research and selection

Check the different types of Mutual Funds available based on their risk-return profile
Check which fund would be suitable for short-term, mid-term and long-term investments
Compare the available funds based on their portfolio composition and past returns
Choose mutual fund schemes that match your financial goals, investment horizon and risk appetite

Costs and fees

Check the fund’s entry load that reduces the investment amount and your returns
Choose schemes that have low entry loads for maximum investments
Check the exit load which might be applicable when redeeming the fund
Check the Total Expense Ratio (TER) too which affects the NAV and the returns

ABCD - One app to build a diversified

Invest in mutual funds online with the ABCD app and build your portfolio one click at a time.

A choice of different types of mutual fund schemes
Online investments with a fully integrated digital platform
Facility to switch, redeem and invest more from a single platform

Download our mobile app now

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Understanding Mutual Funds

Table of Contents

Mutual funds 101: A look into mutual fund schemes How do mutual funds work?What are the features of mutual funds How much mutual funds do you need?What are the payout options?What should be the duration of your mutual fund investments?What tax benefits in investing in Mutual Funds?What are the benefits of investing in Mutual Funds in India?How to Invest in a Mutual Fund in India?

Mutual funds 101: A look into mutual fund schemes

Definition

Mutual Funds are pooled investment avenues that invest in a diversified portfolio of securities and are professionally managed.
Different Types of Schemes

Choose from different types of mutual fund schemes based on the asset class that they invest in.
Active and Passive Fund Management

Actively managed funds are those where the portfolio is actively managed for maximum returns. Passively managed funds track an underlying benchmark.
Market-linked Returns

Unlock the potential to earn market-linked returns which are also inflation-adjusted.
Easy Investments

Invest in a lump sum or in regular instalments to create a corpus for your financial goals.

How do mutual funds work ?

1. A mutual fund scheme collects investments from different investors.
2. These investments are pooled in a consolidated fund.
3. The fund manager, then, invests the pooled fund in different types of market-linked securities based on the fund’s investment objective.
4. With market movements, the value of the underlying securities increases or decreases.
5. This causes changes in the value of the fund’s portfolio.
6. If the value rises, the NAV rises and investors can make a gain on redemption.
7. On the other hand, if the value falls, there’s a loss.

What are the features of mutual funds ?

Expertly managed diversified portfolios
Different schemes for different investment strategies
Affordable and easily accessible

Flexibility to choose the investment fund and amount
Easy liquidity
Different investment and payout modes

How much mutual funds do you need?

There’s no fixed number of Mutual Funds which are ideal for your portfolio.

You can choose to invest in different types of schemes based on;

Your financial goals
Risk appetite
Investment horizon.

A diversified portfolio of different types of Mutual Funds is suitable for;

Risk mitigation and
Attractive returns.

What are the payout options ?

There are two payout options in Mutual Funds -

Dividend Option

A part of the returns earned by the fund’s portfolio is declared as dividends at regular intervals. You can create a regular source of income with this payout option.

Growth Option

The portfolio returns are reinvested in the portfolio for enhanced growth. No dividend is paid. You can earn the aggregate returns on redemption.

What should be the duration of your mutual fund investments?

The duration depends on your financial goals.

For short-term financial goals

Choose short-term mutual fund schemes for :
1. liquidity and
2. capital protection.

For long-term goals

Stay invested and enjoy compounding returns

What tax benefits in investing in Mutual Funds?

Here’s a look at the tax benefits of Mutual Funds -

Equity-oriented funds

15% tax on the returns if you redeem the investment within 12 months
10% tax on returns exceeding Rs.1 lakh if you redeem after 12 months. Returns up to Rs.1 lakh would be tax-free

Debt-oriented funds

Returns are taxed at per your tax slab

ELSS funds

Investment qualifies for tax deduction under Section 80C up to Rs.1.5 lakhs
Returns are tax-free up to Rs.1 lakh. Excess returns taxed at 10%

What are the benefits of investing in Mutual Funds in India?

Liquidity

You can redeem units of your mutual fund very conveniently whenever you need cash

Managed by experts

Fund managers who decide the instruments into which your investment is diversified are qualified, reliable experts

Easy investment process

It is a smooth, hassle-free, online process. You can be stress-free with fund managers making the core decisions for you

Higher Returns

Thanks to diversification and controlled high-potential equity investments, mutual funds give you relatively higher chances at good returns

Investment Diversification

The essence of mutual funds is that you don’t put all your eggs in one basket. Diversification amongst risk levels keeps you safer.

Low cost for bulk purchases

As compared to making numerous separate investments and paying higher commission, mutual funds help you save a lot with one cumulative charge.

Tax-saving Options

You can enjoy tax deductions upto ₹1.5 Lakhs under the Indian Income Tax Act with specific mutual fund investments such as ELSS.

Automated payments

You can give standing instructions to your bank for auto-deductions or even have your fund house send you multiple reminders for payments.

Flexibility

You have various types of funds, payment options, and terms to pick from as per your risk appetite, investment horizon, and financial needs.

Safety

Mutual funds are regulated by the law and by the SEBI (Securities Exchange Board of India), providing a high sense of credibility and security.

How to Invest in a Mutual Fund in India ?

Identify Goals

The purpose of investing in mutual funds, the time in hand for achieving it, the corpus required, etc. decides the kind of fund you opt for.
Risk Tolerance

How much risk can you absorb decides the number of high-risk, low-risk, or medium-risk instruments your fund manager picks for you.
Diversification

You can check the portfolio of your fund and do your research to know if this the right mix for your goals.
Performance

Finding out the quantum of returns the fund has provided investors over different timeframes such as a year, 3 years, 5 years, etc. is important.

Expense Ratio

A lower expense ratio or the amount of your payment used for non-investment costs such as admin, management, etc. is always helpful.
Fund Manager

Evaluate the performance of various funds managed by your manager over time to be assured of their reliability.
Taxation

There are taxes imposed on certain amounts such as redemptions, returns, etc. as well as taxes saved on certain types of funds.

FAQs On Mutual Funds

A mutual fund is an investment instrument that collects money from multiple investors and creates a pooled fund. Then, this fund is invested in a diversified portfolio of securities. Mutual Funds are managed by professionals.

Mutual Funds are of various types. Some of them include equity funds, debt funds, hybrid funds, etc. Moreover, each type of mutual fund is further subdivided into different funds depending on their portfolio allocation.

Some of the costs associated with Mutual Funds include the entry load, exit load, and Total Expense Ratio (TER).

Mutual Funds are liquid avenues allowing any-time withdrawals. However, if you have invested in an ELSS or solution-oriented mutual fund scheme, there might be a lock-in period after which withdrawals would be allowed. That being said, the longer you stay invested in a mutual fund, the better returns you can get.

There is no minimum tenure as the investment horizon depends on your goals. However, there’s a minimum lock-in period for ELSS and target maturity mutual fund schemes. So, if you choose these schemes, check the lock-in period and ensure it aligns with your investment horizon.

A SIP is a way of investing in Mutual Funds wherein you make regular investments in a fund without your intervention every time For instance, you can invest rs 1000 on 5th of every month in a fund through SIP. In this case once you set up the SIP, every month Rs 1000 will be invested in your chosen fund automatically. you need not to initiate the transaction every month.

SIPs offer several benefits, disciplined investing, including rupee cost averaging, flexibility in investments, and compounding returns over time.

One of the primary benefits of SIP is its affordability. You can start investing in Mutual Funds with a small amount of money. Aditya Birla Capital Digital offers different types of Mutual Funds wherein you can start a SIP investment with as little as Rs.100.

Except for ELSS- the tax saving fund and target maturity mutual fund schemes, SIPs do not come with a lock-in period. You can continue your investment for as long as you want and stop them at your convenience. You can withdraw the amount whenever you want.

Yes, you can. Investors can easily modify their SIP amount and frequency based on their financial goals and prevailing situations.

A lump sum investment refers to investing an amount of money in a single transaction. It does not require individuals to invest money at regular intervals like SIPs.

Lump sum investments have various benefits. Some of these benefits are as follows -

You can get immediate market exposure and benefit from a rising market
You don’t have the liability to make regular investments in the mutual fund scheme

Certainly, timing can play a significant role in a lump sum investment. Several investors consider market conditions before making a lump-sum investment like they buy when the market is low. But it needs considerate amount of research to understand the market. So for someone who can not do their own research, should stick to SIP whereas regular investment is made irrespective of market condition. It helps in Ruppee cost averaging i.e. for the same amount you will buy more fund when market is low, and you will buy less amount when market is high.

Considering factors like risk tolerance, time horizon, investment objectives, and market conditions, is crucial before making a lump sum investment.

Investors must diversify their investments across various sectors. This strategy helps mitigate risks associated with lump sum investing. Moreover, time the market correctly when making a lump sum investment so that you can get the maximum possible return on investment.

ABC Of Mutual Funds

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Mutual Funds

Key Benefits

What makes Mutual Funds so popular?

Why you should Invest in Mutual Funds?

Diversification

Liquidity

Growth

Simplicity

Select The Right Type of Mutual Fund For You

Equity Fund

Funds Based On Market Capitalisation

Funds Based On Investment Style

Tax-Saving Funds

Invest In Mutual Funds As Often As You Can

SIP Investment

Lump-Sum Investment

Top Performing Mutual Funds

Invest Now for Your Goals

Own Property

Child Education

Emergency Fund

Early Retirement

Dream Vacation

Major Purchase

What to know before you invest in Mutual Funds?

Investment objective and risk tolerance

Fund research and selection

Costs and fees

ABCD - One app to build a diversified

Understanding Mutual Funds

Mutual funds 101: A look into mutual fund schemes

Definition

Different Types of Schemes

Active and Passive Fund Management

Market-linked Returns

Easy Investments

How do mutual funds work ?

What are the features of mutual funds ?

How much mutual funds do you need?

What are the payout options ?

What should be the duration of your mutual fund investments?

For short-term financial goals

For long-term goals

What tax benefits in investing in Mutual Funds?

Equity-oriented funds

Debt-oriented funds

ELSS funds

What are the benefits of investing in Mutual Funds in India?

Liquidity

Managed by experts

Easy investment process

Higher Returns

Investment Diversification

Low cost for bulk purchases

Tax-saving Options

Automated payments

Flexibility

Safety

How to Invest in a Mutual Fund in India ?

Identify Goals

Risk Tolerance

Diversification

Performance

Expense Ratio

Fund Manager

Taxation

FAQs On Mutual Funds

What is a Mutual Fund?

What are the types of Mutual Funds?

What are the costs associated with Mutual Funds?

Can I withdraw a mutual fund anytime?

What is the minimum tenure period for a mutual fund?

Are mutual funds tax-free?

What are the documents required for mutual fund investment KYC?

Are SIPs and Mutual Funds the same?

Is a mutual funds investment better than stocks?

Can I invest in mutual funds in India if I am a non-resident?

What happens when a scheme in which I have invested winds up?

Are mutual funds risk-free?

What is a scheme’s Net Asset Value?

What makes Mutual
Funds so popular?