Mutual Fund Basics
Everything you need to know about mutual funds - from basics to advanced strategies for wealth creation.
Types of Mutual Funds
Understanding different fund categories to make informed investment decisions
Invest in top 100 companies by market cap for stable growth
Suitable for conservative equity investors seeking steady returns
Invest in mid-sized companies with high growth potential
Higher volatility but potential for superior returns
Invest in small companies with explosive growth potential
Highest risk-reward ratio, suitable for aggressive investors
Invest in very short-term securities, alternative to savings account
High liquidity with better returns than savings account
Invest in bonds and fixed-income securities for stable returns
Suitable for conservative investors seeking regular income
Balanced mix of equity and debt for moderate risk-return
Perfect for balanced portfolio approach
Equity funds with tax benefits under Section 80C
Tax deduction up to ₹1.5 lakh with 3-year lock-in period
Passively managed funds that track market indices
Low cost, diversified exposure to entire market
Invest in specific sectors like IT, pharma, banking
High concentration risk but potential for exceptional returns
Frequently Asked Questions
Get answers to common questions about mutual fund investing
Investment Strategies
Different ways to invest in mutual funds based on your goals and risk appetite
Invest fixed amount regularly regardless of market conditions
Benefits:
- Rupee cost averaging
- Disciplined investing
- Lower risk
Best For:
All investors, especially beginners
Transfer fixed amount from one fund to another regularly
Benefits:
- Gradual exposure
- Risk management
- Flexibility
Best For:
Conservative investors wanting equity exposure
Withdraw fixed amount regularly from your investments
Benefits:
- Regular income
- Tax efficiency
- Liquidity
Best For:
Retirees or those needing regular income
Invest large amount at once when markets are favorable
Benefits:
- Full market exposure
- Higher returns potential
- Simple
Best For:
Experienced investors with market timing skills
Key Takeaways
Essential points to remember for successful mutual fund investing
- Start investing early to benefit from compounding
- Diversify across different fund categories
- Invest regularly through SIP for rupee cost averaging
- Review and rebalance portfolio annually
- Stay invested for long term to ride market volatility
- Don't panic and redeem during market downturns
- Don't invest all money in one fund or category
- Don't time the market for entry and exit
- Don't ignore expense ratios and fund performance
- Don't invest without understanding your risk appetite