Grow Your Wealth invest in Mutual Funds

A mutual fund is a professionally managed form of investing that collects money from many fund investors and puts it to work in a diversified portfolio of stocks, bonds or assets.

With respect to the asset classes to be invested in, mutual funds are categorized into equity funds, debt funds, hybrid funds, index funds, and liquid funds as well as others.

To start investing, your KYC (Know Your Customer) with valid ID, an address proof, and mutual fund of your choosing based on your investment objectives is required. It can be funded using a lump sum or in periodic installments.

SIP (Systematic Investment Plan) is a way of investing a fixed amount of money on a regular basis, monthly or quarterly. It fosters a disciplined approach to investing and minimises the risk of market timing through cost averaging.

Earning returns can be achieved through capital appreciation (increase in the value of your units) and/or dividends. The fund's performance is inherently linked to the assets held by the fund.

Certain mutual funds, such as tax-saving funds, feature a lock-in period of three years. Others might not have such restrictions but may impose a fee known as exit load for early withdrawal.

Market risks apply to mutual funds. Each fund carries a different level of risk and potential return. Equity funds have higher volatility, whereas debt and liquid funds are more stable.