Mutual funds

Mutual Funds

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FAQ’s

  • What is a Mutual Fund?

    A mutual fund is a professionally managed investment vehicle that pools money from multiple investors to invest in a diversified portfolio of stocks, bonds, and other securities.

  • How Do Mutual Funds Work?

    Mutual funds collect investments from various investors and invest them in different asset classes. A fund manager oversees the portfolio and makes investment decisions to maximize returns based on the fund’s objective.

  • What Are the Types of Mutual Funds Available?
    • Equity Funds: Invest primarily in stocks for long-term growth.
    • Debt Funds: Invest in fixed-income securities like bonds for stable returns.
    • Hybrid/Balanced Funds: A mix of equity and debt to balance risk and return.
    • ELSS Funds: Equity Linked Savings Scheme that offers tax benefits under Section 80C.
    • Liquid Funds: Ideal for short-term investments with high liquidity.
  • What is a Systematic Investment Plan (SIP)?

    SIP is a method of investing small amounts regularly in a mutual fund scheme. It helps average out the cost of investments and leverages the power of compounding over time.

  • Is There a Lock-in Period for Mutual Funds?

    Only ELSS (Equity Linked Savings Scheme) funds have a lock-in period of 3 years. Other mutual fund types typically do not have a mandatory lock-in period, offering flexibility for withdrawals.

  • What is the Minimum Investment Amount in Mutual Funds?

    The minimum investment amount can vary depending on the fund, but most SIPs start as low as ₹500 per month, making it accessible to all types of investors.

  • Are Mutual Funds Safe?

    Mutual funds carry market risks as they invest in equity and debt instruments. However, diversified portfolios and professional management help mitigate risks over the long term.

  • What are the Tax Implications on Mutual Funds?
    • Equity Funds: Long-term capital gains (LTCG) over ₹1 lakh are taxed at 10%, and short-term gains (STCG) are taxed at 15%
    • Debt Funds: Taxed as per individual income slab for short-term gains and 20% with indexation for long-term gains.
  • How Do I Redeem My Mutual Fund Investment?

    You can redeem your mutual fund units through your investment platform or AMC (Asset Management Company). The redemption amount is credited directly to your bank account.

  • Why Should I Choose CapitN Bulls for Mutual Fund Investments?

    CapitN Bulls offers personalized advisory services, customized investment strategies, and continuous portfolio monitoring to ensure your financial goals are met efficiently.

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