Frequently Asked Questions

Yes, mutual funds are market-linked and therefore involve a degree of risk. Equity mutual funds, for example, are subject to stock market fluctuations, while debt funds are influenced by interest rates and credit risks. Fixed deposits, on the other hand, offer guaranteed returns and are considered much safer. However, with higher risks in mutual funds comes the potential for higher rewards, making them suitable for long-term financial growth.

Historically, mutual funds have outperformed fixed deposits, particularly equity mutual funds, which can provide higher returns over a long period. Fixed deposits offer fixed interest rates that are often lower than the inflation rate, meaning they might not help you grow your wealth significantly. Mutual funds, although riskier, can provide inflation-beating returns over time.

Yes, mutual funds can be more tax-efficient than fixed deposits. In fixed deposits, the interest earned is added to your taxable income and taxed as per your income slab. In contrast, long-term capital gains from equity mutual funds (held for more than 12 months) are taxed at 10% for gains above ₹1 lakh, while debt mutual funds provide indexation benefits on long-term gains, reducing your overall tax liability.

Yes, mutual funds, particularly open-ended funds, offer better liquidity than fixed deposits. You can redeem your mutual fund units at any time, subject to an exit load if applicable. In contrast, fixed deposits come with a lock-in period, and premature withdrawals often result in penalties and loss of interest, making mutual funds more flexible in terms of liquidity.

Yes, with strategic mutual fund investment planning, you can potentially pay off your home loan faster. By investing in mutual funds, especially through a Systematic Investment Plan (SIP), you can accumulate returns that might exceed the interest rate on your home loan. Over time, these returns can be used to make lump-sum payments towards your loan, reducing the principal amount and shortening the loan tenure. As your mutual fund distributor, we can help you design an investment plan tailored to this goal, balancing risk and reward to accelerate your loan repayment.

Absolutely! Mutual funds, especially equity-oriented ones, have historically provided substantial returns over the long term, thanks to the power of compounding. By consistently investing in mutual funds, particularly through SIPs, you can take advantage of market growth, reinvested dividends, and compounding returns. As your mutual fund distributor, we can guide you in selecting the right funds that align with your long-term wealth creation goals, helping you build a significant corpus over time.

Yes, investing Rs. 10,000 per month through a SIP can help you accumulate a substantial amount for your child's education, especially if you start early. Over time, with the right mutual funds and a disciplined investment approach, your SIP contributions can grow significantly, potentially covering or even exceeding the costs of higher education. As your mutual fund distributor, we will help you select funds that match your risk appetite and time horizon, ensuring you’re on track to meet your child’s educational needs.

As a mutual fund distributor, we offer personalized services that go beyond simply providing access to funds. We assess your financial goals, risk tolerance, and investment horizon to recommend the best-suited funds for your needs. Our expertise ensures that you avoid common pitfalls, stay informed about market trends, and make timely decisions. Additionally, we handle all the paperwork, monitor your portfolio’s performance, and offer ongoing advice, giving you peace of mind and freeing up your time. This level of service and guidance often leads to better investment outcomes compared to going direct, where you might miss out on these tailored insights and support.