Mutual Fund,
a disciplined
approach for
long term goals

• Equity Funds- Equity Funds primarily invest in equity shares. Minimum 65% in equity shares is mandatory for Equity funds. They carry the principal objective of capital appreciation of the investment over a medium to long-term investment horizon.  The size of an equity fund is determined by a market capitalization, while the investment style, reflected in the fund's stock holdings, is also used to categorize equity mutual funds.
• Debt Funds- Debt Funds invest in fixed-income securities like bonds, securities and treasury bills – Fixed Maturity Plans (FMPs), Gilt Fund, Liquid Funds, Short Term Plans, Long Term Bonds and Monthly Income Plans among others – with fixed interest rate and maturity date.
• Hybrid / Balanced Funds- Hybrid funds invest in both debt instruments and equities to achieve maximum diversification. They are ideal for medium- to long-term investors willing to take moderate risks.
• Gold Funds- Gold funds invest directly or indirectly invest in gold reserves. Investments are usually made on stocks of gold producing and distributing syndicates, physical gold, and on stocks of mining companies. It is a convenient way to invest in an asset without having to purchase the commodity in its physical form.

For investors, there are various benefits of investing through mutual funds:

• Professional Management
• Tax efficiency
• Liquidity
• Regulatory transparency.
• Diversification
• Convenience

Since SIPs are a long-term investment option, it is fine if you skip a few payments in-between. Investments made so far will continue to earn a return and you can withdraw it anytime. However, you would accumulate lower wealth than what you had initially expected and may miss your financial goals if you are too irregular. 

The offer document indicates the maximum-allowed expense ratio for each scheme you are considering to invest. The monthly fact sheet and the half-yearly mandatory disclosures allow you to see the actual expenses charged per scheme.

Investing in Mutual Fund through SIP offers a lot of flexibility. Investors can control the amount they want to invest, tenure for which they want to invest, frequency with which they want to invest (weekly, monthly, quarterly, etc.).

Anyone under the age of 18 (minor) can invest in Mutual Funds, with the help of parents/legal guardians until the age of 18. The minor must be the sole account holder represented by the parent/guardian. Joint holding is not allowed in a minor’s Mutual Fund folio.

Yes, an NRI can invest in mutual funds in India as long as he/she adheres to the Foreign Exchange Management Act (FEMA).