Mutual Funds
We work alongside national and international firms.
The investments in securities like stocks, bonds, money market instruments, and other assets occurs using the application of Mutual fund is what and this pool the money from many investors.
Fund Manager Creates a Portfolio of His Choice, Generates a Profits, and Distributes It to Investors.SIP (Systematic Investments Plan) and investments with a lump sum are both forms of investments offered through mutual funds.
Owing to the investor’s choices, he invests in direct and growth strategies. To identify tax savings, mutual fund investments provides the Tax Saving Equity Link Saving Scheme. You need just $500 a month to begin a SIP. The investments in mutual funds are subject to market risk.
Tax Saving Mutual Funds
In accordance with Section 80C of the Income Tax Act of 1961, an ELSS is an Equity Linked Savings Scheme that allows an individual or HUF to deduct up to Rs. 1.5 lacs from the amount they earn in total. As result, if an individual deposited Rs. 50,000 in an ELSS, her total taxable earnings would be reduced, lowering her tax exposure.
Three years from the unit’s allotment date, such developments have a lock-in period. The units may be used for retribution or switch when the lock-in period finishes. ELSS provides choices for both dividends and growth.
Investors can also invest through Systematic Investment Plans (SIP), and investments up to ₹ 1.5 lakhs, made in a financial year are eligible for tax deduction.
The only categories featuring a minimum lock-in period of 3 years and 5 years, respectively, are ELSS (Equity Linked Saving Scheme), Retirement, and Children Funds. While on the other hand in case of debt funds, FMP (Fixed Maturity Plans) is the only category that has a fixed lock-in period.
Our Suggested Platform
Investica
Investica, the mutual funds platform of Choice Broking, brings with itself an experience of nearly 25 years and an insight of some of the stalwarts of the industry.
Being among the Best platforms to Invest in Mutual Funds in India, we’re a holistic platform for all your mutual fund investment needs. At Investica, we take pride in offering smooth and hassle free investment experience to individual investors across our nation. And, we customize investment experience for our clients as per their risk appetite and investment budget while keeping in mind the time horizon they’re aiming for so as to ensure that with our help they are able to accomplish their life goals and create wealth for their future.
SIP
SIP is a systematic way of investing your money in mutual funds. You can invest every month or quarter or year, it depends on the plan you have chosen. It encourages investors to save money and in the end, they can redeem better returns.
A few features of SIP are- investors don’t have time to keep an eye on market and hence can pour in money into SIP. In SIP, one can also get the benefits of compounding i.e., you can reinvest the interest earned from the SIP. In the long run, it can make a huge positive impact on your returns.
SWP
Systematic Withdraw Plan (SWP), allows you to withdraw any amount of money from a mutual fund whenever you want.
Funds are generally withdrawn either to re balance the existing portfolio by investing in other funds or for meeting personal expenses.
SWP is somewhat the reverse of SIP. If you invest lump sum in a mutual fund, you can set an amount you’ll withdraw regularly and the frequency at which you’ll withdraw.
STP
STP Stands for Systematic Transfer Plan. STP is an automated way of moving (transferring) money from one mutual fund to another.
This plan is chosen when one wants to invest a lump sum amount but wants to avoid the marketing-timing risk.
The most common and sensical way of doing STP is to transfer money from a Debt Fund to an equity fund