Why should i hire a financial planner for mutual fund investments?

  • Professional Management: Access to financial planners, who make investment decisions on your behalf

 

  • Diversification: Spread risk across a variety of assets, reducing the impact of individual investment performance or portfolio.

 

  • Liquidity: Easily buy or sell mutual fund units at the current net asset value (NAV).

 

Frequently Asked Questions

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Are mutual funds safe to invest in?

Mutual funds are regulated by the Securities and Exchange Board of India (SEBI), which ensures transparency and investor protection. However, like all investments, mutual funds carry some level of risk depending on the market and the fund type.

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Which types of mutual funds are best for beginners?

For new investors, it’s ideal to start with:

  • Index Funds (low-cost, passive investing)

  • Balanced or Hybrid Funds (mix of equity and debt)

  • SIP in Large-Cap Equity Funds (relatively lower risk)

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Can I withdraw money anytime from mutual funds?

Yes, unless it’s a close-ended fund or a fund with a lock-in period like ELSS (Equity Linked Savings Scheme). Most open-ended funds offer high liquidity, but check for exit loads (charges for early withdrawal).

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What are SIPs (Systematic Investment Plans)?

A SIP allows you to invest a fixed amount in a mutual fund scheme regularly (monthly/quarterly). It encourages disciplined investing and helps with rupee cost averaging and compounding.

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Are returns from mutual funds taxable?

Yes, mutual fund returns are taxed based on the type of fund and holding period:

  • Equity funds: LTCG > ₹1 lakh taxed at 10%, STCG taxed at 15%

  • Debt funds: Taxed as per your income slab if held for < 3 years; LTCG at 20% with indexation if held for > 3 years (as per pre-2023 rules; confirm latest tax updates)

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