A mutual fund is a financial vehicle that invests money from multiple investors to invest in securities like stocks, bonds, and other assets. The fund is managed by professional fund managers who allocate the funds to generate returns.

Unlike savings accounts or fixed deposits, mutual funds have the potential to offer higher returns over the long term by investing in a diversified portfolio of assets. While bank deposits are safer, mutual funds can help grow your wealth faster, helping you achieve your financial goals.

Mutual funds are regulated by SEBI (Securities and Exchange Board of India) and come with various risk levels depending on the fund type. However, investing in a well-researched, diversified mutual fund can help manage and reduce risk.

• Mutual Funds: Mutual funds are regulated investment vehicles managed by professionals, offering diversification, transparency, and potential for long-term wealth creation. They are suitable for investors who want to grow their wealth steadily over time while managing risk through a diversified portfolio.
• Chit Funds: Chit funds are a type of informal savings scheme where members contribute to a common pool, from which they can borrow money through an auction process. While chit funds can provide short-term liquidity, they carry higher risks due to lack of regulation and potential mismanagement. Chit funds are generally not suitable for long-term wealth creation and may lack the safety and professionalism offered by mutual funds.

No, mutual funds are not gambling. They are structured investment vehicles managed by professionals. While there are risks involved, they are calculated and managed through diversification and research.

A SWP, or Systematic Withdrawal Plan, is a facility that allows you to withdraw a fixed amount of money from your mutual fund investment at regular intervals, such as monthly, quarterly, or annually. It provides a steady income stream by redeeming units of your mutual fund investment systematically. SWPs are often used by retirees or those seeking a regular income from their investments while still keeping the remainder of the investment in the market to potentially earn returns.

A Step-Up SIP is an investment plan where you start with a fixed amount of investment, but increase the contribution periodically by a specified percentage or amount. For example, you might start with a monthly SIP of Rs. 10,000 and increase it by 10% every year. This approach helps you invest more as your income grows or inflation affects your financial goals, enabling you to potentially build a larger corpus over time. Step-Up SIPs are designed to help investors gradually increase their investments in line with their financial growth and goals.

You can start investing in mutual funds with as little as Rs. 100 per month through a Systematic Investment Plan (SIP). But to achieve your goals and retirement planning we recommend you to start your SIP from Rs 2000. There is no upper limit to how much you can invest.

A lump sum investment is when you invest a large amount of money in one go into a mutual fund, rather than spreading the investment over time through SIPs. Lump sum investments can be beneficial if you have a significant amount of money available and want to invest it immediately to potentially benefit from market growth. However, the timing of the investment can impact returns, so it's essential to consider market conditions or consult a financial advisor before making a lump sum investment.