You are in

FOR INDIVIDUAL

FOR BUSINESS

Straight2Bank
Login to view and manage your business accounts.

Disclaimer

This is to inform that by clicking on the link, you will be leaving our www.sc.com/inand entering a website operated by other parties:

Such links are only provided on our website for your convenience and Standard Chartered Bank does not control or endorse such websites, and is not responsible for their contents.

The use of such website is also subject to the terms of use and other terms and guidelines, if any, contained within each such website. In the event that any of the terms contained herein conflict with the terms of use or other terms and guidelines contained within any such website, then the terms of use and other terms and guidelines for such website shall prevail.

Thank you for visiting our www.sc.com/in

Proceed
Mutual Fund Investing
  • Stories
  • The Basics of Mutual Fund Investing

The Basics of Mutual Fund Investing  

Mutual Funds Sahi Hai

This narrative has changed the lives of millions of Indians who have been saving and investing over the last few years.

For those looking to start with their mutual fund investment, this is a short primer on the basics of mutual fund investing.

What are Mutual Funds?

A Mutual Fund is a common pool of funds wherein the investors pool their money which in turn is managed by a fund manager. These funds are deployed into various asset classes such as bonds, stocks, gold, etc. The returns are distributed among the investors in proportion to their investments after deducting the expenses and taxes.

Types of Mutual Funds

SEBI has categorized mutual Funds are categorized primarily based on the asset classes they invest in.

Debt funds, equity funds or hybrid funds are funds based on the respective asset class. Funds can also be open-ended and close-ended based on when clients are allowed to invest or redeem their money. There are also other categories of mutual funds that track the index, that are built to save for retirement etc, as well as subcategories that help save taxes, as well as invest in specific themes and sectors.

Taking the SIP route

Whichever fund you choose, you can either make a lump-sum(one time) investment or you can invest at regular intervals with a Systematic Investment Plan (SIP). Investing via an SIP is one of the most convenient ways to make investments, as putting away small amounts regularly do not hurt the pocket and the results can be highly rewarding over a long-term period.

You can start by investing as little as Rs 500 a month to as high as your investment appetite allows. With the power of compounding, even small amounts can turn into a significant corpus.

To estimate return outcomes on your SIP investments, view our SIP calculator 

Benefits of Investing in Mutual Funds

  • Investing in mutual funds is one of the smartest decisions you can take in your investment journey. You don’t have to worry about the day-to-day market movements as there is a fund manager dedicated to the task whose professional expertise you can draw upon.
  • It helps to diversify your portfolio beyond   traditional asset classes such as gold, real estate, etc. A glance at some of the top-performing mutual funds in India can tell you about the kind of returns you can earn by investing via this investment vehicle.
  • A category of mutual funds- Equity Linked Savings Scheme (ELSS), is eligible for tax benefit under section 80C of the Income Tax Act. Hence, you can save on some of your hard earned money by investing in ELSS schemes.

Ending Thought

Investment in mutual funds can be a very rewarding journey. However, you must ensure you conduct thorough research to understand the products better before investing in mutual funds.

If you plan to invest in mutual funds, you can invest via SC Invest and explore investment options best suited to your goals. Click here to know more.