Mutual Funds are professionally managed investment vehicles that pool money from multiple investors to invest in a diversified portfolio of assets such as stocks, bonds, money market instruments, and other securities. They offer an accessible, transparent, and efficient way for both new and seasoned investors to grow their wealth over time. Whether your financial goal is long-term wealth creation, regular income, capital preservation, or tax savings, there's a mutual fund category that fits your needs—ranging from equity funds to debt funds, hybrid funds, and ELSS (Equity Linked Saving Schemes).
✅ Diversification – Spread risk across various assets and sectors, minimizing the impact of a single poor performer
✅ Professional Management – Expert fund managers handle portfolio allocation, research, and monitoring
✅ Affordability – Start investing with as low as ₹500 through SIP (Systematic Investment Plan)
✅ Flexibility – Choose from growth, dividend, or income plans based on your financial goals
✅ Liquidity – Open-ended mutual funds allow easy redemption at NAV (Net Asset Value)
✅ Transparency – Regular updates on portfolio, performance reports, and audited disclosures
✅ Tax Efficiency – Special schemes like ELSS offer tax deductions under Section 80C
ELSS Funds (Equity Linked Saving Schemes):
Eligible for tax deduction up to ₹1.5 lakh under Section 80C of the Income Tax Act
3-year lock-in period, lowest among other tax-saving instruments
Gains up to ₹1 lakh annually are tax-exempt under Section 10(38); above that taxed at 10%
Other Funds (non-ELSS):
Tax treatment depends on the holding period and fund type (equity vs debt)
Equity: STCG taxed at 15%; LTCG at 10% (after ₹1L exemption)
Debt: STCG as per slab; LTCG at 20% with indexation
