FAQs
1. What is a SIP?
SIP stands for Systematic Investment Plan. It is the strategy of investing a fixed amount periodically (typically every month) in mutual funds that are
apt for you and will help you achieve your goals.
2. What are the types of mutual funds in India?
Mutual funds can be classified based on various factors, such as their structure, asset class, speciality, risk and investment objective. Broadly
speaking, there are 3 major types of mutual funds based on asset class - Equity Funds, Debt Funds, and Hybrid Funds.
3. What are money market funds?
These are open-ended mutual funds that invest in short-term debt instruments, such as Treasury Bills, Commercial Papers (CP), etc. Money market funds are
the best funds to invest in, if you would like to park surplus money for immediate but moderate returns.
4. What are debt funds?
Debt mutual funds invest in debt or fixed-income securities, such as government bonds, corporate bonds, money market instruments, etc. These funds
provide fixed returns and are generally considered safe
5. What are mutual funds?
A mutual fund is a pool of money managed by a professional Fund Manager.It collects money from a number of investors who share a common investment
objective and invests the same in equities, bonds, money market instruments and/or other securities.
6. Why should you invest in mutual funds?
Mutual funds are one of the best ways to earn higher returns. They are managed by experts who spread your investments across different asset classes and
actively monitor them to deliver the best returns.
What are the benefits of investing in mutual funds?
So many! But to name a few,
Higher Returns: Mutual funds have the potential to give higher returns, when compared to traditional investing options such as bank FDs, NSCs, PPF etc.
The returns earned from most funds are exempt from taxes (equity) or offer attractive tax benefits (debt), when held for longer duration. You can build a sizeable
amount investing in mutual funds, and benefit from the effect of compounding.
Flexibility: Mutual funds allow you to rebalance your portfolio to suit your needs. Depending upon your risk appetite, age and income, you have the
flexibility to shift between equity and debt mutual funds.
Liquidity: Mutual fund investments can be redeemed as and when needed, providing easy liquidity. They come with little or no lock-in periods.
How do you get started?
Easy! Just sign up for a free-for-life FundsIndia account and let the experts do the work for you. FundsIndia is India's friendliest investment platform. We provide our
investors easy access to a wide range of investment products like mutual funds from leading fund houses in India, corporate fixed deposits, stocks and much more in one
convenient online location. In short, we are your one stop shop to build wealth!
Start investing now
