Frequently Asked Questions – Mutual Funds

Everything you want to know about Mutual Funds

1. What is a Mutual Fund?

   A mutual fund is a professionally managed investment vehicle that pools money from multiple investors to invest in stocks, bonds, or other securities. It offers diversification, expert management, and convenience to investors.

2. How do mutual funds work?

   Mutual funds collect money from investors and invest it in a diversified portfolio based on the scheme’s objective. The returns earned (dividends, interest, capital gains) are shared among investors proportionally.

3. Are mutual funds regulated in India?

   Yes, mutual funds in India are regulated by SEBI (Securities and Exchange Board of India), ensuring investor protection, transparency, and strict compliance.

4. What are the types of mutual funds?

   Mutual funds are categorized into:

   a) Equity Funds – Invest in stocks

   b) Debt Funds – Invest in bonds and fixed-income instruments

   c) Hybrid Funds – Mix of equity and debt

   d) Solution-Oriented Funds – Retirement or child education-focused

   e) Other Funds – Index Funds, ETFs, and Fund of Funds (FoFs)

5. What is a Systematic Investment Plan (SIP)?

   SIP is a disciplined investment approach where you invest a fixed amount in a mutual fund at regular intervals (monthly/quarterly). It helps in rupee cost averaging and building wealth over time.

6. How much money do I need to start investing in mutual funds?

   You can start investing with as little as ₹100 via SIPs, making mutual funds accessible to everyone.

7. How are mutual fund returns taxed?

   Tax depends on the type of fund and holding period:

   a) Equity Funds:

   • STCG (if held < 1 year): 15%

   • LTCG (if held > 1 year): 10% above ₹1 lakh/year

   b) Debt Funds: Taxed as per individual income tax slabs

8. Is there any risk in mutual fund investment?

   Yes, mutual funds are subject to market risks. However, the level of risk varies depending on the fund type. All schemes now carry a SEBI Risk-O-Meter to help investors assess risk levels.

9. How do I choose the right mutual fund?

   The right fund depends on:

   a) Your financial goals

   b) Investment horizon

   c) Risk appetite
   At Kuber Capital, we help you select the most suitable schemes based on these factors.

10. Can I withdraw money anytime from mutual funds?

    Yes, in open-ended mutual funds, you can redeem anytime. Some funds may have exit loads if redeemed within a specific period. Close-ended funds have a fixed tenure.

11. What is NAV (Net Asset Value)?

    NAV is the per-unit value of a mutual fund scheme. It is calculated daily and reflects the market value of the fund's portfolio.

12. How do I track my mutual fund investments?

    You can track your portfolio via:

    a) Kuber Capital's client dashboard

    b) Fund house apps/websites

    c) Consolidated account statements from CAMS/Karvy/NSDL/CDSL

13. Can NRIs invest in mutual funds in India?

    Yes, NRIs can invest in Indian mutual funds through NRE/NRO accounts, subject to FEMA regulations and KYC compliance.

14. Are mutual fund returns guaranteed?

    No. Returns are not guaranteed and depend on market performance. However, they are managed by professional fund managers with a long-term growth strategy.

15. How does Kuber Capital support mutual fund investors?

    We offer:

    a) Personalized fund selection

    b) SIP setup and management

    c) Regular performance reviews

    d) Goal-based portfolio tracking

    e) Full compliance and transparent advisory