Mutual Fund Investments Online

What are mutual funds, and how do they work?

Mutual funds are one of the most popular investment vehicles in India. They pool investments from several investors with common investment objectives and then invest that money in different asset classes, including equity stocks, bonds, commodities, or a combination of these.

Mutual funds are offered by Asset Management Companies (AMCs), and mutual fund investments are managed by professional fund managers. A fund manager prepares an investment strategy as per the risk appetite of investors and allocates the investment in different asset classes accordingly. 

How to invest in mutual funds?

Mutual funds allow you to invest in various asset classes as per your investment objective and risk appetite. You can make your mutual funds investment in two ways - through a Systematic Investment Plan (SIP) or lump sums. Below are the steps you need to follow to invest in mutual funds on Moneyfy:

Step 1 - Create your account on the Moneyfy platform by completing your KYC.

Step 2 - Submit the required documents, including PAN Card, Aadhaar Card, bank details, etc.

Step 3 - Select the mutual fund scheme in which you want to invest your money.

Step 4 - Choose whether you want to invest via SIP or lump sum and make the investment online.

What is the time taken to invest in mutual funds on Moneyfy?

Tata Capital’s Moneyfy platform allows you to invest in mutual funds and stocks from the convenience of your home or office. You can create your investor account in a few minutes by visiting the Moneyfy app or website and uploading the required documents.

How are returns earned in mutual funds?

When you invest in mutual funds, you start earning returns in two ways - capital appreciation and dividends. If you’ve invested in “Growth” funds, your dividend earnings would be reinvested to ensure higher returns. When the value of stocks or bonds in which a mutual fund scheme has invested rises, the Net Asset Value (NAV) of that fund also increases. This way, the investors get their returns through capital appreciation. However, you should always remember that mutual fund returns are subjected to market risks.

Are mutual funds taxable?

Yes. Mutual fund returns are taxable, but the taxation rules depend on the type of mutual fund and the period for which mutual fund investments are held by the investor. In the case of equity funds, if the investments are held for less than one year, gains from them are classified as Short-Term Capital Gains (STCG). And if the investments are held for one year or more, gains from them are classified as Long-Term Capital Gains (LTCG). In the case of debt-oriented funds, gains from them are classified as STCG if they are held for 3 years or less.

Overview

Mutual funds pool money from multiple investors and park these funds in a variety of asset classes such as equity, debt, and money market instruments. The fund’s mandate and goals dictate the respective asset class. A professional fund manager with a good track record is responsible for managing the investors' money to offset risk and optimize returns. The return on the initial investment is distributed among the investors, after accounting for management and other charges.
 

In recent years, mutual funds have risen in popularity with several categories of investors. This is in part due to growing financial awareness and in part due to the ease of entry mutual funds offer even to novice investors.
 

To increase savings and investments, the Government of India held initiatives with the RBI to come up with the first mutual fund in 1963, named, “Unit Trust of India”. Since then, several public and private institutions have started mutual fund schemes. At Moneyfy, you receive expert support in picking the right schemes and investing funds in the right mutual funds for your financial goals.

Types of mutual funds:

• Equity funds - They are stocks and offer high returns. Also considered high-risk, high-return assets.

• Bond/Debt Funds - They are debt classes such as government bonds, and fixed-income assets. Considered safe and provide regular returns.

• Money Market Funds - They are liquid instruments such as T-Bills. Also safe and provide immediate returns

• Balanced/Hybrid Funds - A combination of all the asset classes such as debt and equity.

Benefits of mutual fund investments 

1. Liquidity 

Mutual funds offer liquidity which makes it easy for anyone looking to get cash quickly. 

2. Diversification 

Helps reduce risk by diversifying assets.

3. Managed by experts 

A mutual fund manager thoroughly invests money based on their expertise.

Features of mutual funds with Moneyfy

• Quick registration

• Find over 30 + AMCs for your investments

• Access our expert fund managers

Risks of mutual funds 

• Market Risk – Market trends are often uncertain

 

• Concentration Risk - Focussing on only one asset class is risky as there’s no diversification. 

 

• Interest Rate Risk - Interest rates may change depending on the market

Choosing mutual funds

• Set a short-term or a long-term goal

   

• Consider liquidity for any emergencies 

   

• Choose a fund based on the risk involved

Investing in mutual funds

Today mutual funds investments are completely available online, making it easy to invest. Follow these steps to get started:

• Decide on the online platform

• Next, have all your KYC documents updated to open an account

• Submit the documents, and select the desired mutual fund scheme

• Finally, choose whether you’d like a SIP or a lump sum   

Fees and expenses

• Entry load charges - applied for the very first time that you invest in a mutual fund 

 

• Exit load charges - applied to investors who exit a mutual fund scheme before the end date

 

• Standard transaction charges - applied depending on the amount invested 

 

Begin your mutual fund investments with Tata Capital Moneyfy. Whether it is advice from a fund manager or choosing the right mutual fund, we help you reach your investment goals.