Invest in Mutual Fund
Why Invest in Mutual Funds?
Mutual funds are a smart way to diversify your portfolio, access professional fund management, and enjoy potential high returns. Whether you are a seasoned investor or just starting, mutual funds offer a variety of benefits tailored to your financial goals.
The IndusInd Bank Advantage
Types of Mutual Fund
Large-Cap Funds
Invest in well-established companies with a strong track record, offering stability and consistent returns with lower risk.
Mid-Cap Funds
Focus on medium-sized companies that have the potential for significant growth, balancing moderate risk with higher return prospects.
Small-Cap Funds
Invest in emerging companies with high growth potential, offering the possibility of substantial returns but with higher volatility and risk.
Tax-Saving Funds
Often in the form of Equity-Linked Savings Schemes (ELSS), provide the opportunity for capital appreciation while offering tax deductions under Section 80C of the Income Tax Act.
How to invest in Mutual Funds?
Step 1
Login to your Indus Netbanking account or IndusMobile banking app.
Step 2
Click on āInvestā section and complete your investment account opening in a few steps.
Step 3
Take a short assessment to understand your risk profile
Step 4
Browse through a variety of fund collections to choose the best funds as per your goals.
Step 5
Invest in SIP or lump sum in a single click
Mutual Fund FAQs
What are Mutual Funds and how do they work?
A mutual fund is a pooled investment vehicle where money from multiple investors is combined to invest in a diversified portfolio of stocks, bonds, or other securities. By investing in mutual funds, you benefit from diversification, professional management, and potential returns.
How do I choose the right mutual fund for my investment goals?
Selecting the right mutual fund depends on your financial objectives, risk tolerance, and investment timeline. If you're looking for steady growth with lower risk, Large Cap Funds - which invest in well-established companies - might be ideal. Mid Cap Funds are suitable for those seeking a balance of growth and risk, investing in medium-sized companies with high growth potential. Small Cap Funds cater to investors with a higher risk appetite, focusing on smaller companies that offer significant growth opportunities. For those looking to save on taxes while investing in equities, Tax Savings Funds (ELSS) are an excellent choice, providing tax benefits under Section 80C.
What is the difference between SIP and Lump Sum investments?
A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly, typically monthly, into a mutual fund. Itās a disciplined approach that helps you invest consistently over time, irrespective of market conditions. Lump sum investment, on the other hand, involves investing a large amount at once. SIPs are ideal for those who want to start small and grow their investment, while lump sum investments may suit those with a significant amount of capital to invest.
What are the fees associated with investing in mutual funds through IndusInd Bank?
When you invest in mutual funds through IndusInd Bank, you may be subject to certain fees such as expense ratios, which cover the management and operational costs of the fund. However, IndusInd Bank ensures transparency in fee structures, and youāll receive a clear breakdown of any costs involved during the investment process.
How can I monitor the performance of my mutual fund investments?
With the IndusMobile app or IndusNet banking portal, monitoring your mutual fund investments is seamless. You can view real-time updates, performance charts, and detailed reports directly in one go. These tools help you track your investments and make informed decisions as your financial goals evolve.
Are mutual funds safe and what are the risks involved?
Mutual funds do carry some level of risk depending on the type of fund you choose. With Large Cap Funds, the risk is generally lower as they invest in well-established, financially stable companies. Mid Cap Funds and Small Cap Funds are subject to higher volatility, as they invest in companies that can experience more significant price fluctuations. Tax Savings Funds or Equity Linked Savings Scheme (ELSS), while offering tax benefits, are also invested in equities and can be impacted by market movements. It's important to match your risk tolerance with the type of fund that align with your financial goals.
Can I redeem my mutual fund investments anytime?
Yes, mutual funds generally offer high liquidity, allowing you to redeem your investments as needed. However, certain funds, like ELSS, come with a lock-in period. With IndusInd Bank, you can easily redeem your investments via Indus Netbanking or the Indus Mobile banking app, with the proceeds typically credited to your account within a few business days.
What are the tax implications of investing in mutual funds?
The tax implications for mutual funds vary based on the type of fund and the duration of your investment. Large Cap, Mid Cap, and Small Cap Funds are treated as equity funds for tax purposes. If you hold these investments for more than a year, they qualify for long-term capital gains tax. Whereas Tax Savings Funds not only offer the potential for returns but also provide tax benefits under Section 80C of the Income Tax Act, allowing you to claim deductions of up to ā¹1.5 lakh annually.