Mutual Funds can be divided into various types based on their organisational structure, investment style and asset class. Where do you wish to invest? What is your capacity for risk? When do you want to redeem? These three essential questions determine the type of mutual fund that can suit your investment needs.
Are all mutual funds taxed equally? Capital gains from mutual funds are taxable depending on the holding period and the type of fund. It is significant in determining whether the capital gains are long term or short term. The rate of tax will change for equity and debt-oriented mutual funds.
Mutual funds cut-off timing varies for liquid, debt and equity funds. The cut-off time is 3 pm for equity and debt-oriented funds and 2 pm for liquid funds.
Of all the investment products, mutual funds clearly have an edge because of the right balance between risk and return. The cherry on the cake is that it can be customised to suit your financial goals. But what gives mutual funds the tagline: “Mutual funds sahi hai”?
Mutual Funds offer benefits like ease of investing, compounding and professional management. Mutual funds do not require you to have a Demat account. Here’s how you can invest in mutual funds, in just six simple steps.
The diversification feature of mutual funds helps them balance all kinds of investment risks. With mutual funds, you can choose not to put all your eggs in the same basket. Mutual funds allow you to invest in multiple asset classes based on your risk-taking capacity.