SIP, or Systematic Investment Plan, refers to investing a fixed amount at regular intervals, typically monthly, in a mutual fund scheme. A lump-sum investment means deploying a larger amount in one transaction into the same scheme. This is general educational…
In India, mutual funds are broadly categorised into two management styles: active funds and passive funds (including index funds and exchange-traded funds or ETFs). An active fund is managed by a professional fund manager who selects stocks or bonds intending…
Mutual funds in India fall under SEBI’s categorisation framework (as per the Master Circular for Mutual Funds dated June 27, 2024, available at ), which clearly defines equity funds (predominantly investing in stocks), debt funds (primarily in fixed-income securities like…
In the Indian investment landscape, many households start with familiar options like fixed deposits in banks, Public Provident Fund (PPF), or gold savings before exploring equity exposure. Equity exposure means participating in the ownership of companies listed on stock exchanges,…
Mutual funds are investment schemes that pool money from multiple investors to invest in securities such as stocks, bonds, or a mix, managed by professional fund managers. Fixed deposits, on the other hand, are savings instruments offered by banks or…
An Asset Management Company (AMC), often called a fund house, is a SEBI-registered entity that manages the day-to-day operations of mutual fund schemes in India. It pools money from investors and invests it in securities like stocks or bonds as…
In mutual funds in India, the structure is built as a trust, where investor money is collected and invested in securities. The trustees legally own the assets on behalf of unit holders, while the Asset Management Company (AMC) handles day-to-day…
The Securities and Exchange Board of India (SEBI) regulates mutual funds in India to protect the interests of investors in securities and promote the development of the securities market. The core framework is the SEBI (Mutual Funds) Regulations, 1996, as…
Mis-selling in mutual funds occurs when a distributor or advisor recommends or sells a mutual fund scheme that does not align with the investor’s needs, risk profile, or financial goals, often influenced by commission structures. This can involve incomplete disclosure,…
Mutual funds in India pool money from investors to buy securities such as shares or bonds. All mutual fund schemes carry risks that can cause the net asset value (NAV) to rise or fall. Indian households often view fixed deposits,…