Invest in Mutual Funds Online

Mutual Fund is a financial vehicle that is a pool of money collected from many investors. After pooling the money, the vehicle invests’ the same in a portfolio of securities like stocks, bonds, money market instruments, and other assets. These funds are operated by professional Fund managers, who allocate the fund's assets and attempt to produce gains or income for the fund's investors.

Step by step guide to understand what is a mutual Fund

You can start investing in mutual funds with as little as ₹100, depending on the fund. Both lumpsum investments and SIPs are available with low minimum investment requirements.

Read a detailed guide here.

Investing in mutual funds on INDmoney is transparent and cost-effective:

• Account opening: Free
• Annual maintenance charges (AMC): Zero
• Commission: Zero (direct mutual funds)
• Platform charges: None
• Payment charges : Zero
• Withdrawal charges : Zero

There are no hidden charges. Check Mutual Fund Pricing Page.

Mutual fund returns are calculated based on absolute returns, annualised returns, or XIRR.

XIRR (Extended Internal Rate of Return) is calculated based on multiple inflows and outflows of your multiple investments and redemptions over a period of time and is one of the best benchmarks for performance of your mutual fund portfolio. 
Here is a guide for understanding XIRR.

Taxation depends on the type of fund and holding period:

Equity mutual funds:
Short-term (held less than 12 months): Taxed at 20%
Long-term (held > 12 months): Taxed at applicable LTCG rates : Taxed at 12.5% 

Debt mutual funds: 

Short-term (held less than 12 months): Taxed at your income tax slab
Long-term (held > 12 months): Taxed at applicable income tax slab.
Note that there are some nuances with respect to Debt mutual funds purchased before April 1, 2023. Read below to get clarity on the same. 

Learn about taxation in mutual funds here 

Learn about Capital Gains Tax here.

One can add or update nominees digitally while investing or anytime later through the INDmoney app or website. Nomination helps ensure smooth transfer of investments to the investor’s chosen beneficiaries in an unforeseen scenario that investor dies. 

Read a detailed guide on setting up nominees here.

NAV (Net Asset Value) represents the per-unit value of a mutual fund. It is calculated by dividing the total value of the fund’s assets minus liabilities by the total number of outstanding units.

Read a detailed note to understand NAV

It is the annual fees the mutual fund charges to manage your investment. It is calculated as a percentage of the average asset under management (AUM), commonly ranging from 0.5% to 2%.

Read here a detailed note on Expense ratios

When you purchase an Equity mutual fund before 2 p.m on a day, you get the NAV for the same day. If it is after 2 p.m then you get the NAV of the next Indian market open day. You start seeing the units on the INDmoney App under My Funds latest by two business days(T+2).

When you purchase a Debt Mutual Fund, the units will start reflecting in your account latest by two business days(T+2).

When you redeem your mutual fund investments, the money isn’t transferred to your bank account instantly. The time it takes depends on the type of fund. 

For equity mutual funds, you usually receive the proceeds within two business days (known as T+2), where “T” stands for the transaction day. 

Debt mutual funds, on the other hand, are processed faster, typically within one business days (T+1). 

These timelines can be slightly delayed if your transaction coincides with weekends or holidays. Once processed, the money is directly credited to the bank account linked to your mutual fund investment.
 

Exit load is an expense that you pay to the mutual fund house incase you decide to sell your mutual fund before a particular date. 
Read more about the exit load. 

AUM (Assets Under Management) represents the net assets managed by the Mutual fund scheme.  It is calculated based on the gross value of the assets minus the redemptions. ie. Current value of the Book + New investments - redemptions.  AUM changes daily based on new investments, redemptions and change in the market value of the underlying assets. 

Read a detailed note on what is AUM here. 

The mutual fund manager is the person in charge of executing the fund's investment strategy. The fund manager's role is to make strategic investment decisions to achieve the mutual fund's objectives, balancing risk and potential returns. He is tasked with selecting appropriate securities (stocks, bonds, etc.) based on deep market analysis and research. To oversee the daily trading activities of the mutual fund, ensuring that the portfolio aligns with the fund's goals and adheres to regulations set by the Securities and Exchange Board of India (SEBI). 

Read more about fund manager.