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A mutual fund is an investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors.


TYPES OF MUTUAL FUNDS

Equity

A mutual fund that invests principally in stocks.

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Hybrid

A mutual fund that is characterized by diversification among two or more asset classes.

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Debt

A fund that invests in bonds, or other debt securities.

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Solution Oriented Schemes

This category is characterized by a portfolio that is made up of a mix of equity stocks and bonds.

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Other Schemes

Includes Index Funds, Exchange Traded Funds (ETFs), Fund of Funds (FoFs)

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BENEFITS


Professionally Managed

Funds are managed by qualified fund managers


Tax Saving

Save up to Rs.1.5 lakh under section 80C of the Income Tax Act through investment into Equity Linked Saving Schemes


Affordability

Can start with small amount of investment as low as INR 500 in SIP


Diversification

Invest in a basket of stocks or debt instruments


Liquidity

Investments can be liquidated in 24 hours


Convenience

Transactions are completely online

ARTICLES