Basics of Mutual Funds

Start your investment journey. A mutual fund pools money from many investors and hands it to a professional manager — which solves diversification and time, but not risk.

How the structure works

You buy units at the fund's net asset value. The manager invests according to a stated mandate. Costs come out as an expense ratio, charged daily and already reflected in the NAV you see.

SIP versus lumpsum

A SIP invests a fixed sum at regular intervals, which averages your purchase price and removes the need to time entry. A lumpsum works when you already hold the money and your horizon is long enough to absorb a bad start.

Categories worth knowing

Equity funds for long horizons, debt funds for stability and short goals, hybrid funds for a blend, and index funds for low-cost market exposure. ELSS funds add a tax deduction with a three-year lock-in.

What nobody can promise you

Past performance does not predict future returns. Any projection — including the ones on this site — is an illustration based on a rate you chose, not a commitment anyone can make.

Before you decide

Everything above is general. What is right for you depends on what you are protecting, what you already hold, and what you can sustain. That is a fifteen-minute conversation, and it is free.