Category: Mutual Funds

Top 10 Mutual Fund Distributors in India

India’s mutual fund industry reached a historic AUM (Assets Under Management) of ₹74.79 lakh crore in June 2025, showing an unprecedented growth of about 22–23% over the previous year. With this rapid expansion, choosing the right mutual fund distributor is more critical than ever. Whether you’re searching for the top mutual fund distributors in India, the biggest industry players, or reliable personal advisors and brokers, making an informed choice can significantly impact your investment journey.

In this guide, we will discuss the most trusted and trending mutual fund distributors of 2025 that can help make your investment journey easier.

Who are Mutual Fund Distributors?

Mutual fund distributors are individuals or institutions that help investors invest in different mutual fund schemes. These distributors are registered with AMFI (Association of Mutual Funds in India) and work under an ARN (AMFI Registration Number). Their job is to suggest the right scheme, help with documentation and provide investment related information to their clients.

Types of Mutual Fund Distributors

Institutional Distributors: Such as NJ Wealth, Prudent, ICICI Securities etc. who do sell mutual funds on a large scale.
Bank Distributors: Such as banks like SBI, HDFC, Axis who have the advantage of branch network.
Fintech Platforms: Such as Groww, Zerodha, ET Money which sell mutual funds through digital channels.
Individual ARN Holders: Independent financial advisors who provide personal guidance on a small scale.

Top 10 Mutual Fund Distributors in India 2025

Distributor Name	Distributor Type	AUM (FY 25) (₹ Cr)	Coverage & Highlights
State Bank of India	Bank	1,73,756	Largest network, deep penetration among rural investors
NJ Wealth	National Distributor	1,60,999	33,000+ ARN holders, digital and in-person support
HDFC Bank	Bank	1,19,188	Extensive branch network and reliable customer service
Axis Bank	Bank	74,290	User-friendly app, faster digital growth
Prudent Corporate	Institutional Distributor	69,785	31% growth rate, Pan-India branch network
ICICI Bank	Bank	55,749	Extensive branch network and digital reach
Kotak Mahindra Bank	Bank	46,100	Focus on HNI and mid-level investors
360 ONE Distribution Services	Institutional Distributor	29,905	75% YoY Growth, App-based wealth management
Anand Rathi Wealth	Institutional Distributor	28,342	Targeted advice for NRI and HNI investors
HSBC Bank	Bank	26,546	18% year-on-year growth

Overview of the Top Mutual Fund Distributors in India

An overview of the top 10 mutual fund distributors in India is given below:

1. State Bank of India

SBI leads the mutual fund distribution industry in India with an AUM of ₹1,73,756 crore. It offers equity, debt, hybrid and ETF schemes. SBI’s strength is its extensive branch network, which helps it offer investment schemes to every corner of the country—city and village. Their Balanced Advantage and Bluechip Fund are preferred investment choices among common investors.

Read Also: SBI Case Study

2. NJ Wealth

Started in 2000, NJ Wealth has today become the country’s largest fund distribution network with 33,000+ ARN holders and an AUM of around ₹1,60,999 crore. Schemes of many AMCs are available at one place on its platform. The mix of tech-enabled and personal dealing makes it a trusted choice among investors.

3. HDFC Bank

HDFC Bank mutual fund distribution segment, with assets under management of ₹1,19,188 crore, maintains a strong presence in the distribution landscape through its extensive banking channels and reputation for reliable customer service. Its schemes—such as Flexi Cap and Balanced Advantage offer predictable returns. Its digital reach along with its branch network has made HDFC a trusted asset among retail investors.

Read Also: HDFC Bank Case Study

4. Axis Bank

Axis Bank’s mutual fund distribution segment has an AUM of around ₹74,290 crore. This AMC is known as the digital avatar of mutual funds with research-driven equity funds and strong SIP growth campaigns. Bluechip and Midcap are its key identities.

Read Also: Axis Bank Case Study

5. Prudent Corporate

Prudent Corporate, holding ₹69,785 crore in AUM, is noted for its rapid growth rate and robust pan-India branch network. It operates primarily on the IFA network and offers client-customized digital tools. Its presence in Tier‑2/3 cities is steadily growing.

6. ICICI Bank

ICICI Bank’s mutual fund distribution business, with an AUM of ₹55,749 crore, relies on a multi-channel model that combines its extensive branch network with robust digital offerings, delivering mutual fund solutions to a broad spectrum of clients. With funds like Balanced Advantage and Bluechip Equity leading the way, its distribution network offers investors access to a wide range of mutual fund schemes, supported by consistent performance and strong brand trust.

Read Also: ICICI Bank Case Study

7. Kotak Mahindra Bank

Kotak Mahindra Bank The bank’s mutual fund distribution business has an AUM of ₹46,100 crore. The bank’s mutual fund distribution team utilizes the bank’s brand name, branch network and digital channels to effectively reach its client base.

8. 360ONE Distribution (ET Money)

360 ONE Distribution Services reports an AUM of ₹29,905 crore. Recognized for its substantial year-on-year growth, this institutional mutual fund distributor employs app-based wealth solutions and has developed a reputation for technological innovation in serving affluent and HNI clients.

9. Anand Rathi Wealth

Anand Rathi Wealth, with an AUM of ₹28,342 crore in mutual fund distribution business, focuses predominantly on NRI and HNI clients. The firm is acclaimed for its professional research, personalized advice, and broad spectrum of wealth management services, including mutual funds and portfolio management.

10. HSBC Bank

HSBC Bank is among India’s leading mutual fund distributors, managing approximately ₹26,546 crore in AUM as of FY 2023–24. Leveraging its global expertise and strong digital platform, HSBC delivers curated multi-AMC mutual fund solutions to retail and affluent clients

Top 10 Individual Mutual Fund Distributors in India

Rank	ARN Holder Name	AUM (₹ Cr, FY 2024)
1	Gaurav Ganpule	₹1,887 Cr
2	Ganesh Shanbhag	₹1,494 Cr
3	Ranjan Panigrahi	₹1,251 Cr
4	Sadashiv Phene	₹1,079 Cr
5	Mukund Sheshadri	₹1,020 Cr
6	Hari Kamat	₹979 Cr
7	Jennifer Mendes	₹892 Cr
8	Sandeep Borse	₹884 Cr
9	Harish Kotian	₹829 Cr
10	Ajay Mishra	₹828 Cr

How to Choose the Right Distributor in

As important as it is to invest in mutual funds, it is equally important to choose a reliable mutual fund distributor. In 2025, market competition and the growing number of digital platforms have given investors many options. But the right choice is the one that strikes a balance between your investment goals, convenience, and cost.

Verify ARN registration and validity : All mutual fund distributors must be registered with AMFI (Association of Mutual Funds in India). Verify whether the distributor’s ARN number is valid and active by visiting the AMFI website.
Experience and quality of investment advice : Choose a mutual fund distributor who can provide you additional services like goal-based investing, risk profiling, and periodic portfolio reviews. Years of experience and client retention are important indicators.
Digital platforms : A good mutual fund distributor gives you an easy-to-use digital platform — where you can track your funds, manage SIPs, and easily buy or sell when needed. Also look at the security features and user interface of the app.
Reporting and data transparency : Does the distributor regularly provide you with Consolidated Account Statement (CAS), Portfolio Report and Tax Summary? All these reports help in your financial planning and monitoring.
Client support and response time : A professional distributor should respond to your queries in a timely manner. Check if they have a dedicated support team and whether they provide regular follow-ups and updates.
Variety of product coverage and advice : The distributor should not be limited to just 1–2 AMCs. It is better to find a distributor who provides you access to mutual funds from multiple AMCs.

Conclusion

Mutual fund investing offers a wide range of choices, but not all are aligned with your financial goals, risk profile, or time horizon. That is why it is important to select a reliable mutual fund distributor who understands your needs and helps you make better decisions. Advice, platform features, and tracking tools—all these aspects are now as important as the performance of the mutual fund itself. So, select your mutual fund distributor carefully and begin investing in mutual funds today after consulting your investment advisor.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	History of Mutual Funds in India
2	Mutual Fund Factsheet: Definition And Importance
3	What is an Open-Ended Mutual Fund & How to Invest in it?
4	How to Invest in Mutual Funds?
5	Equity Mutual Funds: Meaning, Types & Features

Frequently Asked Questions (FAQs)

What is a mutual fund distributor?
A mutual fund distributor is a person or institution that acts as an intermediary, helping investors buy, sell, and manage mutual fund investments.
How do I check if a distributor is registered?
To check whether the distributor is registered or not, you can visit the AMFI website and enter their ARN number and verify the details.
Are online platforms better than traditional distributors?
If you prefer digital convenience and investing on your own, then online platforms may be a better option.
Do mutual fund distributors charge fees from investors?
No, in the regular plans their commission is paid by the AMC, no separate charges are taken from the investor.
Can I switch my mutual fund distributor later?
Yes, you can change your distributor or transfer to a direct plan anytime you wish.

July 22, 2025

10 Best Apps for SIP Investment in India (July 2025)

SIP (Systematic Investment Plan) has become the preferred way to invest in mutual funds in India, with record collections of ₹26,688 crore in May 2025 and over 8.56 crore active accounts. As SIP AUM crosses ₹14.61 lakh crore, choosing the best SIP app in India has become essential for building wealth safely and systematically. The right app makes investing simple, disciplined, and goal-oriented.

This blog will discuss the top 10 SIP apps based on the latest features of 2025.

What is SIP and why invest through SIP Apps?

SIP (Systematic Investment Plan) is an investment method in which you invest a fixed amount in mutual funds every month. It is a disciplined and easy way to build wealth in the long run, especially for those who want to start with small investment amounts. In SIP, you take advantage of rupee cost averaging i.e. even if the market fluctuates, your average purchase price remains low.

Why are SIP Apps important?

In 2025, when almost everything has gone online, mobile apps have made everything even easier for SIP investments. Now you can invest in mutual funds from the comfort of your home, that too in just a few minutes.

Benefits of SIP Apps :

The entire process is paperless and fast
You can easily track all your investments
Most apps offer you direct mutual funds, which saves commission
Goal-based investing and risk analysis tools help you analyze investment options better

What should be there in a good SIP App?

Easy and user-friendly interface
Zero or very low charges
Access to all major mutual funds
Safe and SEBI-registered platform
Features like portfolio tracker and alerts

SIP apps not only provide convenience, but have also become the smartest way to plan and manage your financial goals; so choosing the right best platform for SIP is important.

10 Best Apps for SIP Investment in India (2025)

App Name	SIP & Lump Sum Option	Key Highlights	App Ratings (Android / iOS)
Groww	Available	Stocks, F&O, IPOs, UPI Autopay, clean UI	4.7 * / 4.3 *
Zerodha Coin	Available	UPI SIP, STP, low-cost direct plans	3.8 * / 3.3 *
Kuvera	Available	UPI SIP, STP, low-cost direct plans	4.6 * / 4.5 *
Paytm Money	Available	Mutual Funds + Stocks, Stock SIP, IPOs, GTT orders	3.7 * / 4.4 *
INDmoney	Available	US stocks, credit score, tax tools, MF loans	4.6 * / 4.7 *
ET Money	Available	Smart fund picks, insurance & loan access, tax-saver packs	4.2 * / 4.4 *
Upstox MF	Available	Integrated with Upstox trading app, ₹0 brokerage, tax-saver funds	4.5 * / 4.3 *
Fisdom	Available	Mutual funds, stocks, IPOs, portfolio management services	4.5 * / 4.7 *
myCAMS	Available	Safe, paperless investing, no commission	3.9 * / 3.1 *
KFinKart	Available	Paperless and safe investing with no commission	3.1 * / 2.8 *

Note: App rating can change significantly based on launch of new features, better versions, etc., so check before choosing a SIP platform.

Read Also: How to Cancel Mutual Fund SIP?

Overview of 1o Best Investment Apps in India

An overview of the 10 best investment apps in India is given below:

1. Groww

Groww is one of the most trusted and user-friendly SIP investment apps in India today. By 2025, Groww has over 50 million users and has become an excellent platform for beginners, especially those who are investing in mutual funds for the first time.

Groww was started in Bengaluru in 2016, and was founded by four ex-Flipkart employees – who wanted to make investing simplified and digital.

Key Features:

SIP and lump sum investments in mutual funds from all major AMCs
Easy and seamless SIP setup via UPI Autopay
Along with mutual funds, corporate bonds, F&O, IPOs and digital gold are also available for investments
Simple and clutter-free interface, which makes it easy for even new users to understand
Curated fund suggestions in the “Explore” tab

Pros:

Zero commission on direct mutual funds
100% paperless KYC and instant account activation
Very easy to track and manage

Cons:

Goal-based planning features are still limited
Advance analytics tools are limited

Charges:

Groww does not charge for investing in mutual funds

Flat charge of ₹20 per executed order is applicable for Stock/F&O trading

Who is it suitable for?

If you are investing via SIP for the first time and want an easy, reliable and digital experience, then Groww is one of the best choices.

2. Zerodha Coin

Zerodha Coin, an offering from Zerodha Broking Ltd, was launched in 2017 and has become the largest zero-commission platform for direct SIP investments in India. Zerodha was established in 2010 and has a reach of over 13 million clients, making investing in Coin a safe and reliable option.

Key Features :

Zero-commission direct mutual funds (no leaked commission)
Instant mandate setup with UPI Autopay SIP – without ECS, and limit up to ₹1 lakh/day
STP (Systematic Transfer Plan) within the same AMC
Features such as weekly SIPs, XIRR, Family-portfolio views, etc.

Pros:

Zero commission investing in direct mutual funds
Part of the trusted Zerodha ecosystem

Cons:

Zerodha Coin requires a Zerodha Demat account as mutual fund units are held in Demat form.
Limited options for goal-based investing, limited advanced analytics

Charges:

Mutual Funds (SIP/lump sum) investing is absolutely free
Demat account maintenance charges ₹300/year (Quarterly ₹75).

Who is it right for?

Coin is a perfect fit for those who have a Zerodha trading account and want commission-free SIPs. For active traders and investors who like to use advanced features, Coin is a strong choice.

3. Kuvera

Kuvera was started in 2016 in Bengaluru, and was founded by Gaurav Rastogi (ex‑Morgan Stanley) and Neelabh Sanyal (ex‑Axis Capital). In 2024, it was acquired by Cred, which further expanded its resources and reach. Kuvera has become the preferred platform for trusted, smart and growth‑oriented investors.

Key Features:

Zero-commission for investing in direct mutual funds
Tax-harvesting & TradeSmart: Auto recommendations, exit-load and short‑term gain optimization for tax‑savings
Goal & Family Account: Create family investments and goal‑based SIP plans like child education, retirement, or other specific goals.
Portfolio consolidation CAS‑based import makes all MF investments visible at one place
Asset classes like US stocks, fixed income & sovereign gold bonds also included by 2025

Pros:

Completely commission-free investment in direct mutual funds through SIPs
Advanced portfolio tools and tax-saving features are great

Cons:

Some users have complained of UI and performance issues eKYC delays, app crash, duplicate SIPs
Customer support has improved since Cred acquisition

Charges:

Absolutely free in Mutual funds (SIP/lump sum)
Other assets like US Stocks and FDs may have some nominal charges (check terms on platform)

Who is it right for?

Investors looking for tax optimization
Like to set up family portfolios or goal-based SIPs
Trust DIY but want advanced tools

4. Paytm Money

Paytm Money was launched in January 2018 by One97 Communications (Paytm) to bring investing to India’s largest payment app. By 2025, the app has expanded rapidly, and has become popular for mutual funds as well as stock trading.

Key Features:

Direct mutual fund SIP and lump sum investment across all major AMCs
Instant SIP setup with UPI Autopay no paperwork
Features across mutual funds as well as stocks, digital gold, NPS, F&O, IPO
Smart investing tools like SIP reminder widgets and All-in-One SIP
Start SIP from just ₹250 possible with flexible frequency

Pros:

Zero commission direct SIP
Easy to start with Low entry SIP (₹250)
New trading tools like UPI Autopay, OCO (One Cancels Other) and GTT (Good Till Triggered) orders
Facility to do both SIP and stock investing in a single app

Cons:

Sometimes there are complaints of delay or rejection in SIP mandate setup
Limited goal-planning and advanced analytics features

Charges:

No charge for SIP and lump sum investment in mutual funds
On Stocks and F&O trading Flat brokerage of ₹20 per order

Who is it right for?

Paytm Money is great for those who want to do mutual fund SIPs as well as stock investing from a single platform. It is a flexible and all-in-one investing app for both beginners and active investors.

5. INDmoney

INDmoney is a modern super finance app that was launched in 2019. It is known not only for SIP but also for offering US stocks, fixed deposits, credit score tracking and goal-based financial planning. By 2025, INDmoney has established itself as an all-in-one personal finance platform.

Key Features:

SIP and lump sum investment in mutual funds from all major AMCs
Scheduled recurring US stock investments with fractional shares, similar to SIP.
Credit score tracking, insurance, loan offers and financial reports all in one place
Personalized goal planner and family portfolio management
Insta Plus feature also offers instant loans on mutual funds

Pros:

Zero commission SIP and global investing on one platform
Advance dashboard and insightful reports
Tax-saving options and flexibility of goal-based planning
Finance tools like credit score and loan eligibility

Cons:

Too many app features can be overwhelming for beginners

Charges:

SIP in mutual funds is completely free
There may be some nominal platform charges on US stocks and other financial products

Who is it right for?

INDmoney is great for investors who want to invest in US stocks along with SIP. This app is very useful for those who need credit score tracking, insurance and smart financial planning.

6. ET Money

ET Money is a trusted fintech platform launched in 2016 by Times Internet. It is known not only for SIP investment but also for features like insurance, credit score, expense tracking and tax-saving planning. By 2025, ET Money is being used by more than 1 crore users and its reputation is constantly getting stronger.

Key Features:

SIP and lump sum investments in direct mutual funds from all major fund houses
One-click SIP setup starting from ₹500
Tax-saving ELSS funds and 80C planning tools
Monthly expense tracker and custom goal planner
NPS (National Pension Scheme) and insurance products also available

Pros:

Direct SIPs without commission
Goal-based investing and smart fund recommendations
Integrated expense and insurance tracking in the app
Dedicated tools and reminders for tax-saving

Cons:

SIP cancellation or modification sometimes has to be done manually
No advance analytics or international investment options

Charges:

No charge for mutual funds SIPs
Third-party charges may apply for other services like NPS or insurance

Who is it suitable for?

ET Money is ideal for users who want to manage their personal finances along with SIP investments from one place. Especially those who want to keep track of expenses, tax planning and insurance together.

7. Upstox

Upstox, which started in 2009, is today one of the largest discount brokers in India. Its app provides the essential features of SIP in an easy and straightforward way, allowing investors to get started without any complications.

Key Features:

SIP and lump sum investment facility on both app and website
SIP can be started from ₹100, depending on AMC
Access to mutual funds from all major AMCs
Fund filter and curated list help in choosing the right scheme
Stocks and mutual funds both can be managed from a single login

Pros:

For those who are already using Upstox, starting a mutual fund is seamless
No brokerage or extra charge for SIP
The app interface is clean and user-friendly
It becomes easy to handle multiple investments from a single platform

Cons:

Features like goal-based investing are not available yet
Manual process has to be followed to modify or cancel SIP

Charges:

There is no charge for investing in mutual funds
The annual maintenance fee of Upstox demat account is ₹300 (₹75 quarterly)

Who is it right for?

If you already trade on Upstox and want to start investing in mutual funds as well, then Upstox is a practical and reliable option. Especially good for those who want to do SIP in various mutual funds.

8. Fisdom

Fisdom is an investment and wealth management platform started in 2015 in Bengaluru. It offers mutual fund SIPs as well as investment in stocks IPOs and portfolio management services. By 2025, Fisdom has gained a strong foothold among investors, especially in small towns.

Key Features:

SIP and lump sum investment facility in mutual funds of all major AMCs
Goal-based SIP plans and ready-made fund baskets
Value-added services like NPS, health insurance and tax filing
Auto-debit mandate and real-time SIP tracking

Pros :

Mutual funds as well as financial planning is done from one place
Simple guidance and curated fund packs for beginner investors
Additional features like tax tools, pension plans and insurance

Cons:

App interface may seem a bit outdated to some users
Advanced analytics or research tools are not very strong

Charges :

No charge on mutual fund investments (Direct plans available)
Some third-party services like tax filing or insurance may have nominal fees

Who is it right for?

Fisdom is perfect for those who want to manage their entire financial life from one place and not just mutual fund SIPs. This app can be very useful for beginners and salaried individuals.

9. MyCAMS

MyCAMS is a trusted name among mutual fund investors. It was started by Computer Age Management Services (CAMS), which is one of the largest back-end support companies in the mutual fund industry. MyCAMS App provides mutual fund investors a centralized, secure and paperless way to track not just SIPs but the entire portfolio.

Key Features:

Direct SIP plans from CAMS-registered AMCs (like HDFC MF, ICICI Prudential, SBI MF etc.)
Facilities to view and manage investments of multiple fund houses in a single app
Facilities like instant redemption, SIP pause/resume, nominee update
Family account mapping and consolidated portfolio view

Pros:

A completely secure and official mutual fund app as data is not shared with third parties
Detailed portfolio and transaction history for investors
Direct plans and zero commission investing

Cons :

Interface seems a bit old compared to other new apps

Charges:

No charge on SIP and lump sum investments
All plans are direct i.e. no brokerage or commission

Who is it right for?

MyCAMS is great for investors who just want to do SIPs in mutual funds and want their money to be completely secure, official and trackable. It is a solid choice especially for long-term and serious investors.

10. KFinKart

If you are looking for an app that lets you manage mutual funds hassle-free, KFinKart might be the right choice for you. It is developed by KFin Technologies, which has been handling the backend operations of the mutual fund industry for years. The best part of this app is that it gives you a simple and straightforward way to invest in mutual fund schemes offered by KFin-serviced AMCs such as Axis Mutual Fund, Nippon India, Kotak MF, etc.

Key Features :

SIPs starting from ₹500 and lump sum option
Track and manage all KFin supported mutual funds in one place
Easy to pause/resume SIP, update nominee or redeem units
Add family investments in one place

Pros :

Simple and clutter-free interface ideal for beginners
Invest in direct plan without any commission
Long-term portfolio tracking and detailed investment reports
Trusted backend system keeps data safe and verified

Cons:

UI and app design can feel a bit dated, especially when compared to other apps

Charges:

Mutual fund investments (SIP and lump sum Both) can be done without any fees

Best for whom?

KFinKart is best suited for investors who want to control their mutual fund investments through a trusted registrar. If you are doing SIPs in multiple AMCs and want to see everything in one place, on a clean interface then this app can be a practical and efficient choice for you.

Read Also: SIP vs Lump Sum: Which is Better?

Conclusion

SIP is an investment method that can make a big difference in the long run provided you choose the right app. There are many options in the market today, but not every app is right for everyone. So choose an app based on your needs, investment style and convenience. Things like an easy to use interface, better tracking and reliable support can make your investment journey successful. You can consult a financial advisor to select the best app to do SIPs.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Types of Mutual Funds in India
2	Mutual Fund Factsheet: Definition And Importance
3	Equity Mutual Funds: Meaning, Types & Features
4	What Is An IPO Mutual Fund? Should You Invest?
5	Who Regulates Mutual Funds in India?
6	History of Mutual Funds in India
7	How to Invest in Mutual Funds?
8	How to Check Mutual Fund Status with Folio Number?
9	Long-Term Capital Gain (LTCG) Tax on Mutual Funds
10	Mutual Fund Taxation – How Mutual Funds Are Taxed?

Frequently Asked Questions (FAQs)

Which is the best app for SIP investment in India?
Apps like Groww, Zerodha Coin, ET Money and INDmoney are considered good for SIP.
Are SIP apps safe to use?
Yes, if the app is offered by a SEBI registered and trusted platform; then it is safe to use.
Can I start SIP with just ₹100?
Yes, SIP can be started from as low as ₹100 on many apps like Groww, Zerodha coin, Paytm money, etc.
Do SIP apps charge any fees?
Most apps offer direct plans, with no commission or hidden charges.
Can I stop or pause SIP anytime through apps?
Yes, almost all SIP apps have the facility to pause or cancel that too without any paperwork.

July 11, 2025

Top 10 Fund Managers in India 2025

As important as it is to choose the right mutual fund in the market, it is equally important to know who is managing that fund. In 2025, there are many fund managers whose wisdom and experience have consistently brought good profits to investors.

In this blog, we will know about those top fund managers of India, due to whom the trust of many investors remains intact.

Who is a Fund Manager?

A fund manager is a professional who manages the investments of a mutual fund. That is, he decides how to invest your money. His aim is to get you better returns and manage the risk simultaneously. A fund manager does many important tasks, as listed below:

Portfolio management: Decides in which companies to invest and how much money to invest in which sector.
Market analysis: Analyzes the trends of the stock market, economic data and the performance of the company.
Risk control: Keeps the direction of investment such that the chances of loss in the long term are less.

A good fund manager can move your capital in the right direction. His strategy, research and experience can improve your returns manifold. On the other hand, if the decision is wrong, then even a good fund can perform poorly.

Before investing in a mutual fund, don’t just look at the return graph, but also know who is managing that fund. Understanding the fund manager’s past performance and investment philosophy is the mark of a smart investor.

Top 10 Fund Managers in India 2025

Fund Manager	AMC	AUM (in ₹ crores)	Schemes Managed	Experience
Sankaran Naren	ICICI Prudential Mutual Fund	6,74,085	23	26 years
R. Srinivasan	SBI Mutual Fund	1,14,343	14	30 years
Shreyash Devalkar	Axis Mutual Fund	1,16,687	6	14 years
Jinesh Gopani	Taksh Asset Management	Undisclosed	Undisclosed	20 years
Harsha Upadhyaya	Kotak Mahindra Mutual Fund	2,01,344	14	20 years
Sohini Andani	Ex-SBI Mutual fund	74,657	2	23 years
Manish Gunwani	Bandhan MF	35,683	7	25 years
Aniruddha Naha	PGIM AMC	19,777	4	22 years
Chandraprakash Padiyar	Tata Mutual Fund	23,149	3	25 years
Ankit Agarwal	UTI Mutual Fund	17,903	3	17 years

AUM = Assets Under Management, which shows the total investment of their funds.
Schemes Managed includes information on how many schemes they are managing.

Overview of the Top 1o Fund Managers in India

An overview of the top 10 fund managers in India is given below:

1. Sankaran Naren

Serving as CIO at ICICI Prudential since February 2011, Naren joined the AMC in October 2004 and has been active in the financial sector for nearly 26 years so far.

AUM and Schemes : Naren is currently managing 23 mutual funds with a total AUM of around ₹6.74 lakh crore This figure puts ICICI Prudential AMC among the top AMCs in the country.

Key schemes : He manages several leading equity and hybrid funds – such as Multi‑Asset Fund, Value Discovery Fund and Equity & Debt Fund .

Understanding risk-management : Naren also explains that with a large AUM, even a small mistake can lead to huge losses.

Why are they the best?

Reason	Description
Experienced and Strategic	26+ years of experience, Educated from IIT Chennai and IIM Kolkata
Experience of managing a Large AUM	Efficiently managing an AUM of over ₹6.7 lakh crore
Balanced Approach	Pays attention to risk and valuation along with returns

2. R. Srinivasan

R.Srinivasan joined SBI Mutual Fund in May 2009, and has been serving as CIO Equity for a long time now. He has over 30 years of experience in finance and equity investments.

AUM and Schemes : They manage SBI’s flagship equity and hybrid schemes such as SBI Small Cap Fund, Focused Equity Fund, and Equity Hybrid Fund. The total AUM of these funds was around ₹1,14,343 crore as of July 2025.

Performance of key schemes : SBI Small Cap Fund has delivered returns of around 19–21% CAGR over the last 10 years, and has topped the list with around 21.9% CAGR over the last seven years, reflecting its robust strategy.

Investment Strategy and Approach : Srinivasan believes in bottom-up stock selection emphasizing on the quality and valuation of individual companies. He adopts an investment approach based on a quantitative model, forensic accounting, etc. which keeps his portfolio balanced and diversified.

Why are they the best?

Reason	Description
Fund Outperformance	SBI Small Cap Fund has consistently given 19-21% CAGR and 7 year performance of above 21.9%
Decisions based on in-depth research	Stocks are selected using data and model based analysis
Core‑Satellite Approach	Allocates a significant portion of portfolio to stable, long-term investments and smaller portion to high-growth investments, effectively balancing risk and returns.

3. Shreyash Devalkar

Shreyash Devalkar is the head of equities at Axis Mutual Fund since August 2023 and has been associated with the company as a senior fund manager since November 2016. He started at JP Morgan as a credit analyst in 2004 and then worked for IDFC securities and BNP paribas, now with 16+ years of investment experience.

AUM and Schemes : Devalkar manages a total of 6 schemes with a total AUM of around ₹1.16 lakh crore as of July 2025

Performance of key schemes : Axis Growth Opportunities Fund has given around 20.35% CAGR in the last 3 years, while Mid Cap Fund has a 3-year AUM of ₹26,079 crore; both have ranked better than category average.

Investment strategy and approach : Devalkar relies on thematic- and bottom-up stock selection. He has identified 10 key themes such as auto, pharma, renewables in H1–2025 and focuses on finding value in industrial manufacturing

Why are they the best?

Reason	Description
Theme-Driven Strategies	Actively investing in upcoming sector themes (manufacturing, pharma, IT)
Fund performance	Funds like Axis Growth Opportunities give 20%+ CAGR
Experience	Consistent track record from BNP Paribas to Axis over 15+ years

4. Jinesh Gopani

Jinesh Gopani started Taksh Asset Management Private Limited in Jan 2024 and was previously employed at Axis Mutual Fund since 2009 as a senior fund manager and later on as Head of Equities. Prior to this, he also worked with Birla Sun Life AMC and Voyager India Capital, which gave him a deep understanding of the equity market.

AUM and Schemes : AUM of his company is not publicly disclosed as it is a private company. At Axis, he managed an AUM of $14 billion and his investments returned 35% CAGR in the last three years and 42% CAGR since its inception in 2009.

Key Schemes Managed at Axis: At Axis, he managed Axis Growth Opportunities Fund, Axis Focus 25 Fund, Axis ESG Fund, etc.

Investment Philosophy and Strategy : Gopani follows a ‘quality at reasonable price’ approach, where both quantitative analysis and qualitative team insights are valued. He has adopted a diversified approach, giving importance to thematic stock selection and global allocation.

Why are they the best?

Reason	Description
Impressive Returns	42% CAGR since inception at Axis.
Quality-based selection	Focus on ROE/ROCE, cash flow and management pedigree
Theme + Global Approach	International diversification with thematic picks

5. Harsha Upadhyaya

Harsha Upadhyaya serves as Chief Investment Officer – Equity at Kotak Mahindra AMC. He has held research and management roles at UTI, DSP BlackRock and Reliance and now has nearly 20+ years of investment experience.

AUM and Schemes : Harsha currently manages around 14 major equity/hybrid schemes including Kotak Flexi Cap Fund , Multicap Fund , ELSS Tax Saver, etc.

Performance of key schemes : Kotak Flexi Cap Fund was ranked third in the flexi‑cap category with ₹17,943 crore AUM at the start of 2025 and has delivered a CAGR of 27.5% over the last three years.

Investment Strategy and Approach : Harsha uses bottom‑up research and quantitative modelling. He adopts a highly diversified approach along with thematic investing (Manufacture in India), maintaining a balance of growth‑oriented and value‑based schemes in his portfolio

Why are they the best?

Reason	Description
Strong AUM	He manages 14 mutual fund schemes and has a total AUM of ₹2,01,344 crores
Outstanding performance	Consistent outperformance in Flexicap and Multicap categories
Data‑Based Decisions	Balanced portfolio using quant models and thematic investing

6. Sohini Andani

Sohini Andani joined SBI Mutual Fund as Head of Research in October 2007, and has been working as Portfolio Manager since May 2010. Her total investment experience spans around 23 years. She recently stepped down from the role in April 2024.

AUM and Schemes : She managed SBI Bluechip Fund and SBI Magnum Midcap Fund, with an AUM of ₹43,355 crores and ₹16,459 crores respectively.

Performance of Key Schemes : SBI Bluechip Fund has delivered around 15.4–15.5% annualised return over the last 10 years. SBI Magnum Midcap Fund has delivered 22.2% CAGR over the last 3 years, which is better than the category average.

Investment approach and strategy : Her focus was on companies with a long-term growth potential, strong management, and good promoter holding . She picks stocks that are not capital-intensive and show systematic growth over time.

Why are they the best?

Reason	Description
Strong AUM	₹43k Cr+ in Bluechip, ₹16k Cr+ AUM managed in Midcap
Performance	Two great funds with 15%+ and 22%+ CAGR
Smart Selection	Balance between growth and value, focus on promoter holding and capital intensity

7. Manish Gunwani

He is currently employed in Bandhan mutual fund as Head of Equities and has previously worked as CIO (Equities) at Nippon India Mutual Fund since September 2017, but resigned from the position in January 2023. His total experience in the equity sector spans nearly 25 years, including the role of senior fund manager at ICICI Prudential AMC .

AUM and Schemes : Gunwani handles around 4 mutual fund schemes namely Bandhan Focused Equity Fund, Bandhan Flexi Cap, Bandhan Innovation Fund, etc. Their collective AUM was around ₹35,000 crore as of July 2025.

Performance of key schemes : Bandhan Emerging Businesses Fund Direct Growth and Bandhan Core Equity Fund Direct Growth gave a CAGR of 35.8% and 29% in the last three years respectively.

Investment strategy and approach : Gunwani believes in ‘growth at a reasonable price’ style. He keeps the portfolio risk balanced through bottom-up stock picking and flexible asset allocation.

Why are they the best?

Reason	Description
Emphasis on quality	Growth at reasonable price to balance returns and risk
Large AUM and diversified schemes	₹35k Cr+ AUM across 7 schemes
Strong track record	CAGR of 14.3% in Growth Fund vs 12.7% of category

8. Aniruddha Naha

Aniruddha Naha serves as a CIO of Alternatives at PGIM India and joined the company as a Senior Fund Manager in 2018. He has nearly 22 years of experience in both equity and debt markets.

AUM and Schemes : As a Senior Fund manager and head of equities, Naha oversaw 4 flagship mutual fund schemes with a combined AUM of around ₹20,000 crores.

Performance of key schemes : Midcap Opportunities Fund has shown 19% (3Y) and 15.6% (5Y) CAGR under his leadership, while its benchmark was around 13% Balanced Advantage Fund has given around 8% CAGR returns, and aims to provide equity-like returns with low volatility .

Investment Strategy and Approach : Naha is a proponent of the GARP (Growth at Reasonable Price) approach as he picks businesses that have strong cash flows, healthy balance sheets, and modest valuations. He does bottom-up stock selection and controls downside risk with a core-satellite allocation.

Why are they the best?

Reason	Description
Strong Midcap Performance	Better returns than benchmark with 15–19% CAGR over 3–5 years
Process-driven selection	GARP + Cash-flow oriented Systematic Research
Downside Protection	Controlling volatility through diversification

9. Chandraprakash Padiyar

Chandraprakash Padiyar joined Tata Asset Management in September 2018 as a Senior Fund Manager. Prior to this, he has worked with UTI Mutual Fund and Alchemy Capital his total experience is around 25 years, which includes in-depth research and portfolio management.

AUM and Schemes : He handles flagship schemes like Tata Small Cap Fund, Tata Large & Mid Cap Fund, and Tata Aggressive Hybrid Equity Fund.

Performance of key schemes : Tata Small Cap Fund has consistently delivered high growth since September 2018, weathering market fluctuations.

Investment philosophy and strategy : Padiyar emphasises on ‘growth with free cash flow’ ; his focus is on companies that have strong balance sheets and are relatively undervalued. He maintains a narrow focus and pays equal attention to liquidity management.

Why are they the best?

Reason	Description
Small‑Cap Specialization	Maintained small-cap exposure with liquidity control for a small cap mutual fund scheme with an AUM of ₹10,000+ crore AUM
Long term consistency	Balance between growth and stability even across market cycles
Selection based on strong fundamentals	Priority given to businesses with free cash flow and low valuation

10. Ankit Agarwal

Ankit Agarwal is the Fund Manager for Equity Funds at UTI Mutual Fund since August 2019. He holds a PGDM from IIM Bangalore, and has worked with prestigious organizations like Lehman Brothers, Barclays Wealth, BNP Paribas, and Centrum Capital his total experience is about 17 years.

AUM and Schemes : Agarwal manages UTI Mid Cap Fund and UTI Small Cap Fund and UTI Innovation Fund. The combined AUM of his schemes is over ₹15,500 crore with the Mid Cap Fund alone reaching ₹10,900 crore .

Performance of key schemes : UTI Mid Cap Fund has generated around 24.37% (3Y) returns under his leadership and UTI Small Cap Fund has generated around 26.32% (3Y) returns.

Investment approach and strategy : Agarwal believes in bottom-up stock selection and prioritises aspects such as innovation and scalability. His Innovation Fund focuses on backing disruptive businesses, while Small/Mid Cap focuses on turnaround investment opportunities.

Why are they the best?

Reason	Description
Effective approach	Achieving returns with a focus on companies experiencing a turnaround and focussing on innovation
Strong AUM	Leading schemes with AUM above ₹17,000 crores

How to Choose the Right Fund Manager as an Investor?

You can choose the right fund manager for yourself based on the points mentioned below:

Check the track record of the fund manager : The past performance of any fund manager gives a glimpse of his/her strategy and investment style. See what kind of returns he/she has given in the last 5–10 years—not just in good times, but also how he handled the portfolio during economic downturns. Consistent performance is a characteristic of a reliable fund manager.
Fund managers’ investment strategy matches your Financial goals: Every fund manager has a specific investment philosophy—like value investing, growth, thematic or multi-cap approach. You should choose the manager whose strategy matches your financial goals and risk profile.
AMC and research support : A good fund manager can be successful only if he gets the support of a strong AMC and research team. Big AMCs like HDFC, SBI, Kotak, Axis and UTI also have strong research infrastructure and risk management teams.
Open and transparent communication style : Does the fund manager provide regular updates to investors on his strategy and market positioning? This is a sign of transparency and accountability.

Conclusion

The foundation of a successful investment is not just selecting the right fund, but also the right fund manager. His experience, way of thinking and ability to understand the market can directly affect your returns. Therefore, before investing in any scheme, it is good to assess the rating of the mutual fund scheme and the past performance and investment approach of that fund manager. Remember, a good fund manager can turn your financial goals into reality in the long run. It is advised to consult a financial advisor before investing in any mutual funds.

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4	Decoding Hedge Funds In India – Types, Advantages And Distinctions
5	Bandhan Long Duration Fund NFO: Objective, Benefits, Risks, and Suitability Explained

Frequently Asked Questions (FAQs)

Who is the best mutual fund manager in India right now?
Sankaran Naren, R. Srinivasan and Shreyash Devalkar are counted among the top fund managers in 2025.
How to evaluate a fund manager’s performance?
Assess the funds based on their long-term returns, consistency, and performance in market downturns.
Does a fund manager really impact mutual fund returns?
Yes, the investment strategy and experience of the fund manager directly impacts the fund’s returns.
Should beginners consider fund managers while investing?
Of course, choosing the right fund manager before investing can lead to better and stable returns.
Can the same fund perform differently under a new manager?
Yes, the new manager’s investment philosophy and style can change the fund’s performance.

July 9, 2025

What is an Open-Ended Mutual Fund & How to Invest in it?

Ever wonder how you can make your money work for you and have liquidity? Well, open-ended mutual funds might be one solution to your issue. Open-ended mutual funds offer you the freedom to buy and sell shares at any time, giving you better control over your financial journey. But how do they work?

In this blog, we will discuss the basics of open-ended mutual funds, their advantages and disadvantages, and how they differ from close-ended mutual funds.

What are Open-Ended Mutual Funds?

An open-ended mutual fund is a pool of money invested in different securities, such as stocks, bonds, or other securities, on behalf of various individual investors. Unlike closed-ended funds, these mutual funds do not have a fixed number of shares, and investors can buy or sell shares at any time based on net asset value. This flexibility allows investors to enter and exit the fund according to their investment goals.

These funds are managed by professional fund managers who make investment decisions to achieve the fund’s objectives. Open-ended mutual funds can be used to implement various investment strategies, making them suitable for investors with different risk appetites and financial goals. Their liquidity and diversification help the investor build a robust portfolio while having access to his invested capital when needed.

How Do Open-Ended Mutual Funds Work in India?

Open Ended mutual funds follow the below process:

1. Investment Pooling: Investors invest in the mutual fund by adding money to the mutual fund’s investment pool. Each investor’s money is combined with money from the other investors to form a corpus or a pool of money.

2. Portfolio Management: The fund managers invest the pooled money in a diversified portfolio of stocks, bonds, and other securities based on the fund’s investment objectives.

3. Net Asset Value Calculation: The NAV of the fund is computed on a daily basis. It represents the net asset value of a fund per unit after accounting for its liabilities. The NAV is used to calculate the price at which buying or redemption of units takes place.

4. Buying and Redeeming Units: Investors buy or redeem the fund’s units at the price set by the NAV.

5. Dividends and Distributions: Any income in the form of dividends or interest is distributed among investors and can be reinvested to buy additional units.

6. Performance Monitoring: The fund manager continuously monitors the fund’s performance and rebalances the portfolio according to the fund objectives. The investors may monitor the fund’s performance through various reports and updates.

In India, open-ended mutual funds fall under the purview of the Securities and Exchange Board of India (SEBI), which assures transparency and protection of investors.

How to Invest in Open-Ended Mutual Funds?

Investors can invest in an open-ended mutual fund in two ways:

During the NFO period: Investors can invest during the New Fund Offer (NFO) period and are allotted units based on par value or face value.
After the NFO period: Investors can buy units of open-ended mutual funds at NAV after the NFO period.

Moreover, an investor can redeem mutual fund units at NAV at any time. However, ELSS is an exception as it has a lock-in period of three years, after which the investor can sell the units just like any other open-ended scheme.

Read Also: History of Mutual Funds in India

Advantages of Open-Ended Mutual Funds

The advantages of open-ended mutual funds are:

Liquidity: There is a high level of liquidity because investors can purchase or redeem units at the NAV on any business day.
Diversification: It pools money from many small investors to form a diversified portfolio, reducing the investment risk of individual investments.
Professional Management: Professional fund managers invest in pooled funds, which is beneficial for people who do not have much time or expertise in making investment decisions.
Regular Updates: Since NAV is calculated on a daily basis, investors get regular updates about their investments.
Flexibility: The investors can invest a small amount of money periodically or even make a lump sum investment. This makes open-ended mutual funds suitable for various kinds of financial goals.

Disadvantages of Open-Ended Mutual Funds

Disadvantages of open-ended mutual funds are:

Market Risk: The value of investments in open-ended mutual funds may vary with market conditions, which can result in potential losses.
Management Fees: Mutual funds charge management fees, which reduces returns.
No Control Over Individual Investments: The investor has no say in the selection of securities or any other investment decision.
Potential for Lower Returns: Depending on the fund’s strategy and the prevailing market conditions, returns may be lower compared to direct investment in individual securities.
Redemption Pressure: Open-ended mutual funds must maintain a cash reserve to meet redemption requests, which reduces the overall returns.

Difference Between Open-Ended and Close-Ended Mutual Funds

Parameters	Open-Ended Mutual Funds	Closed-Ended Mutual Funds
Buy and Redeem	Shares can be bought or redeemed at NAV on any business day.	Investors can subscribe to close-ended mutual funds only during the NFO period or can buy and sell shares on the stock exchange.
Liquidity	Open-ended mutual funds have high liquidity.	Close-ended mutual funds have low liquidity.
Fund Size	The fund size varies because investors can invest or redeem shares at any time.	The fund size is fixed and remains constant throughout its life.
Pricing	Price is based on the Net Asset Value (NAV).	Price is based on the demand and supply of units traded on the stock exchange.
Ways to Invest	Investors can invest in open-ended mutual funds via SIP or make a lump sum investment.	Investors can invest only lump sum amounts in close-ended mutual funds.

Conclusion

In summary, open-ended mutual funds provide flexibility, liquidity, and professional management and, hence, are an apt solution for investors seeking diversification and easy redemptions. On the other hand, investors pay management fees and are exposed to market risks. The closed-ended mutual funds have fixed fund sizes with lower liquidity. Knowing the differences helps investors select funds according to their financial goals. It is advised to consult a financial advisor before investing.

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5	Debt Mutual Funds: Meaning, Types and Features

Frequently Asked Questions (FAQs)

How frequently does an open-ended mutual fund update its NAV?
The NAV is calculated and updated daily, reflecting the current value of the fund’s portfolio.
Do open-ended mutual funds offer diversification?
Yes, they invest in a diversified portfolio of assets, reducing the risk associated with investment in a single security.
Can I redeem my investment from an open-ended mutual fund at any time?
Yes, you can redeem your units at the current NAV.
How are open-ended mutual funds regulated in India?
Open-ended mutual funds are regulated by the Securities and Exchange Board of India, ensuring transparent operations and the safety of investor capital.
Are open-ended mutual funds suitable for a short-term investment horizon?
Open-ended mutual funds are suitable for a short-term investment horizon as they have high liquidity. However, inventors must assess the fund’s investment objectives and strategy before investing.

September 23, 2024

Registrar And Transfer Agent: Definition, Roles, And Responsibilities

Are you a mutual fund investor? If yes, then have you ever wondered how asset management firms (AMCs) manage such a high volume of transactions daily, and how they plan to maintain an archive of all investors, including contact information? RTA, or Registrar and Transfer Agent, oversees the same, making the procedure a lot easier for AMCs.

In this blog, we will cover the meaning of Registrar and Transfer Agents (RTAs) in the mutual funds world and all the services they offer.

What is Registrar and Transfer Agent

Registrar and Transfer Agents, or RTAs, are financial entities that assist asset management companies (AMCs) in keeping track of ownership of mutual fund units. In simple terms, they help companies in record maintenance and typically serve as a middleman between investors and AMCs or securities issuers. RTAs offer services across the country via their digital platform and are registered with the market regulator, i.e. Securities and Exchange Board of India.

Roles and Responsibilities of RTA

There are various critical roles and responsibilities to be fulfilled by RTAs, a few of which are mentioned below:

Maintenance of Records – RTAs are the sole entities responsible for maintaining records of investors or unit holders, including names, addresses, phone numbers, and other relevant information.
Recording of Transactions – RTAs maintain a record of all securities transferred from one investor to another.
Distribution of Dividend – After receiving payout details from asset management companies, RTAs ensure that the dividends are accurately distributed to the respective unit holders of a mutual fund.
Regulatory Compliance – RTAs ensure full adherence to the regulations set by our regulator, i.e., the Securities and Exchange Board of India (SEBI).

Services Provided to Asset Management Companies

The following are different services provided by RTA to the AMCs:

KYC Verification: One of the primary services is investor KYC verification to comply with SEBI regulations.
Record Maintenance: RTAs keep up-to-date records of each investor’s contact details, including address and ownership information.
Fund Accounting: RTAs assist AMCs with accurate NAV computation and ensure investors receive the correct investment value.
Regulatory Compliance: Helping AMCs adhere to SEBI’s regulatory standards.
Delivery of units: Ensuring the proper and timely delivery of mutual fund units to investors is one of the RTA’s most critical responsibilities.

Services Provided to Mutual Fund Investors

RTAs offer multiple services to the mutual fund investors. Such as:

Transactions – RTAs facilitate mutual fund transactions via online platforms, enabling operations such as redemption, switching, and more.
Statement of Accounts – Additionally, RTAs provide mutual funds investors with a consolidated account statement that presents a comprehensive snapshot of all the mutual fund holdings.
Additional Requests – Through the online portal of RTAs, investors can submit various requests, such as cancellation of SIPs, STP, or SWP, updating bank account details, nomination changes, and much more.
Dividend Distribution – RTAs manage the processing and delivery of dividends to the unitholders of mutual funds.

Services Provided to Alternative Investment Funds (AIFs)

RTAs provide services to alternative investment funds (AIFs) as well. Below mentioned are some of the key services:

Client Onboarding: RTAs assist AIFs in onboarding new clients by verifying their eligibility which includes multiple compliance works such as KYC verification.
Record Maintenance: They maintain comprehensive investor records for AIFs, including details on holdings, invested capital, dividends, capital gains, and more.
Regulatory Compliance: RTAs help AIFs meet all SEBI-mandated requirements and prepare and submit necessary regulatory reports from time to time.

Did You Know?

As of 30 August 2024, there are 321 RTAs on Central Depository Services Limited (CDSL) and 97 RTAs on National Securities Depository Limited (NSDL). CDSL and NSDL are two government-registered depositories in India.

Charges by RTAs

The RTAs levy various charges on companies for providing their services. A few of these are mentioned below:

Transaction-Based Charges – These charges are based on transactions done by the investors, such as purchases and redemptions.
Asset-Based Charges – This fee is determined on the basis of assets under management (AUM) of the companies.
Maintenance Fees – This is an annual fixed fee for keeping the records up to date of asset management companies.
Dividend Fees – This charge is levied for processing and delivering the dividends to the unitholders of mutual funds.
Compliance Fees – RTAs levy a compliance cost for providing services such as KYC verification, anti-money laundering documentation, and other compliance related tasks.

Remember that the investors bear all these costs, because eventually all fees or charges levied by the RTAs are often included in the total expense ratio (TER) of mutual funds.

Conclusion

In summation, Registrars and Transfer Agents (RTAs) play a crucial role for asset management firms because they take all the responsibility of maintaining investor records, managing transaction data, facilitating new investor onboarding, compliance work, and much more.

Further, they also offer their services to Alternative Investment Funds (AIFs) and Portfolio Management Service (PMS) Companies.

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4	What is TREPS & Why Mutual Funds Invest in it?
5	Debt Mutual Funds: Meaning, Types and Features

Frequently Asked Questions (FAQs)

Can I directly contact the RTA for my investment-related issues?
Yes, if an investor has any questions related to their investment in mutual funds, they can speak with the relevant RTA directly.
How can I check which mutual funds are managed by which RTA?
You can easily know the RTA of your mutual fund by checking the account statements sent by the AMCs. Alternatively, visit the AMC website and navigate to the Investor or Contact Us section to find the RTA details.
What should I do if RTA does not resolve my complaint?
One can directly complain to RTA via their customer service. In case no satisfactory resolution is provided, one can file a complaint with SEBI via their SCORES online platform.
What is the function of the Registrar and Transfer Agent in the mutual fund industry?
RTAs keep a track of transaction records and investors information. In simple terms, they provide record maintenance services to the AMCs. Apart from this, they also ensure that investors receive appropriate units for their investments.
Who is the regulating authority for the Registrar and Transfer Agents (RTAs)?
The Securities and Exchange Board of India oversees the Registrar and Transfer Agents.

September 14, 2024

Mutual Fund vs PMS: Which is Better?

After putting in a lot of effort, you may have some capital left after paying for all your expenditures. However, one must be cautious when it comes to investing your assets. Nowadays, mutual funds and portfolio management services (PMS) are the most popular investment options available to investors, but do you know how to choose the right one for you?

In this blog, we provide information about mutual funds and PMS and the approach an investor must take to choose between them.

Overview of Mutual Fund

A mutual fund is a type of financial vehicle that pools the capital of several investors with similar investment goals or objectives. The pooled capital is invested in various asset classes, including equities, bonds, commodities, etc., by the fund managers, who are professionals in this field. After deducting expenses and fees, the investor gets the return on their investment. An asset management company, or AMC, is the organization in charge of this procedure.

In India, mutual funds can be categorized based on asset classes, financial goals and structure. There are four types of mutual funds in India based on asset class-

Equity Mutual Fund – Due to its vulnerability to fluctuations in the market, this specific mutual fund type is riskier than others because it typically invests in stocks or equities.
Debt Mutual Fund – Investors who invest in these funds are risk-averse because they invest in fixed-income securities such as government bonds, corporate bonds, and other fixed-income securities.
Hybrid Fund – This fund invests in both debt and equity. The portfolio of hybrid funds will have some allocation to debt to deliver stable and predictable returns, along with some equity allocation to achieve capital appreciation.
Money Market Fund – This type of mutual fund invests in low-risk money market instruments, such as treasury bills and commercial paper, with maturities less than a year.

Overview of Portfolio Management Services

Financial institutions offer portfolio management services or PMS. Investors may purchase this product, and a group of experienced fund managers will use their expertise to determine which asset classes to invest in.

Individuals typically set aside a percentage of their capital for investments, but if they don’t have the investing knowledge, they may not be able to invest it properly. Such investors can invest in portfolio management services (PMS) companies. Investment professionals manage the portfolio according to the client’s risk profile, investment objectives, and preferences. In exchange for these services, investment managers charge fees.

Types of portfolio management services are:

Discretionary PMS– Under this category of portfolio management services, the portfolio managers make all investment-related decisions on behalf of the client. Fund managers are not required to consult with investors before making investment decisions. Most customers select this kind of service.
Non-discretionary PMS– In this type of service, the fund manager needs the client’s approval before investing. The investment team of PMS provides financial advice to the client, who ultimately chooses whether or not to take it.

Difference Between Mutual Funds and PMS

Particular	Mutual Fund	PMS
Minimum Investment Amount	In mutual funds, the minimum investment amount starts from INR 100.	As per SEBI, a minimum investment amount of INR 50 Lakhs is required for PMS.
Customisation	A mutual fund does not allow investors to customize their portfolios.	PMS allows investors to customize portfolios according to their preferences.
Ownership of Assets	Investors don’t directly own underlying assets.	The investor has direct ownership of underlying securities.
Charges	Mutual funds have nominal fees compared to PMS, which generally have higher fees.	PMS has higher fees than mutual funds.
Risk	Mutual funds are suitable for investors with low-risk profiles.	It is typically ideal for high-risk investors.
Transparency	In mutual funds, investors can only track the performance of funds.	Investors of mutual funds can track and view every trade made in their accounts.

Factors to Consider Before Investing in Mutual Funds and PMS

The various factors to be considered before investing in mutual funds and PMS are as follows-

Risk Profile – The investor’s risk tolerance will determine whether they choose a mutual fund or PMS as their investment option. If investors are ready to take high risks, they should choose PMS.
Capital – If an investor has a substantial amount of money to invest, they may choose to opt for portfolio management services (PMS). Investors with a small capital to invest can choose mutual funds.
Expense Ratio – Mutual funds investments have a relatively lower expense ratio than PMS.
Return Potential – PMS generally offer higher potential returns than mutual funds. Hence, investors seeking better returns may invest in PMS instead of mutual funds.
Liquidity – Generally, PMS have longer lock-in periods than mutual funds.

Read Also: Types of Mutual Funds in India

Conclusion

In conclusion, there are advantages and disadvantages to investing in PMS and mutual funds. If investors want personalized investment services and have a sizable amount of money to invest, they should choose PMS. Investors should consider mutual funds if they have a lower initial investment amount. Investors should consult a financial advisor before investing.

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Frequently Asked Questions (FAQs)

What is the minimum investment amount required to open a PMS account?
The SEBI guideline states that a minimum investment of INR 50 lakhs is required to open a PMS account.
Which is better: PMS or Mutual Fund?
Mutual funds are suitable for individuals with a low-risk tolerance and a small amount to invest, while PMS is suitable for investors with a high-risk tolerance who have at least INR 50 lakh to invest.
Does PMS have exit loads?
Indeed, exit loads for certain portfolio management service companies typically range from 1% to 3%.
How are the profits from PMS taxed?
Profits earned by the PMS are subject to capital gains tax, and the tax rate varies according to the asset’s holding period.
Can an NRI invest in PMS in India?
NRIs can invest in PMS in India if they follow FEMA regulations and other compliance requirements.

August 28, 2024

Is Your Mutual Fund Investment Safe?

As a novice investor who has recently begun investing in mutual funds, you may be afraid after learning about a mutual fund investment issue faced by an investor while investing via a famous broker. However, your investments in mutual funds are safe as SEBI has put several restrictions in place to protect investors’ interests.

Read our blog to learn how your mutual fund investments are safe from fraud.

Role of SEBI and AMFI

The mutual fund industry in India is currently valued at 61 lakh crore with over 19 crore folios. The Securities and Exchange Board of India is a government organization overseeing the smooth operation of the capital market and regulates mutual funds in India. In addition to the 1996 mutual fund legislation, SEBI has released several guidelines to safeguard investor’s interests.

The Association of Mutual Funds in India (AMFI) is a statutory entity that oversees asset management companies, in addition to SEBI, publishes a code of conduct for participating entities and handles investor complaints.

Modes to Hold Mutual Fund Units

Investment in mutual funds can be held in two different modes:

SOA Mode

The Statement of Accounts, or SOA, is the conventional way to hold mutual fund units. With this approach, the units are kept in a statement form that the asset management business issues periodically. The statement includes information on the folio number, transaction history, and other details. SOA is mailed to the registered address of the investor and is useful for those who prefer physical records.

Demat Mode

An investor must have a Demat account with a depository participant, such as NSDL or CDSL, to hold mutual fund units in demat form. Mutual fund units are stored electronically in a single demat account, much like your other investments, like equities and bonds. This enables investors to track all of their assets in one location.

Difference Between SOA and Demat Mode

Particular	SOA	Demat
Mode of Holdings	Mutual fund units are kept in statement form.	Mutual fund units are held in electronic form in a demat account.
Accessibility	Under this method of holding, investors must interact with AMC or Registrar.	Investors are required to deal with a broker.
Fees	No additional charges apply for holding units of mutual funds in SOA form.	AMC is required to be paid along with transaction charges, brokerage, etc.
Transaction Mode	The transaction orders of mutual funds units can be placed directly with AMC through an online platform and physical forms.	Transaction orders can only be placed through online platforms.
Nominations	Transfer of units involves a lengthy and separate process for each AMC.	The method of nomination and transfer is easy and can be managed through a demat account.

An investor filed a complaint against a famous broker, claiming that the broker had not invested in a mutual fund even though it had deducted money from his account. The app generated a false folio number and also removed the investment details from the dashboard.

Clarification by the Broker: The broker released a formal statement on the matter, claiming that there has been no withdrawal of funds from the customer’s account and no transaction took place. The broker acknowledged that the folio was incorrectly reflected on the customer’s dashboard. The broker credited the claimed amount back to the customer’s account afterward.

How to Safeguard From Fraudulent Activities in Mutual Funds?

It is your responsibility as an investor to safeguard yourself against any fraudulent activity. There are several ways to achieve this:

Online Portals – If you are an online investor, you should only invest via the Asset Management Company’s official website and mobile application.
MF Central Platforms – A software called MF Central, developed by two significant RTAs (Registrar and Transfer Agency), CAMS and Kfintech, allows users to manage their investment portfolios by viewing all of their mutual fund investments in a unified way and updating information across all mutual fund folios.
Consolidated Account Statement – Consolidated Account Statements are useful for investors who have invested in several asset management firms. Investors can stay up to date on their portfolio holdings by generating a monthly CAS statement using CAMS and NSDL.
Grievances – Investors can use SCORES to raise their complaints to SEBI and receive a prompt resolution to their problems.

Conclusion

In summary, investing and thoughtful portfolio construction are important components of financial planning, but proactive measures to safeguard your assets against risks are also necessary. One should take several steps to lower the risk of falling victim to fraud. Investors must always invest through official and verified platforms to protect against fraud. An investor should consult with a financial advisor before investing.

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Frequently Asked Questions (FAQs)

Is it safe to invest in mutual funds using online platforms?
Yes, several online platforms let investors purchase mutual funds. However, as an investor, you must thoroughly investigate the platform before investing to ensure it is official.
Does SEBI govern MF Central?
In September 2021, two RTAs, CAMS and K-Fintech, developed the website MF Central in compliance with a directive from SEBI.
Are there any charges for holding mutual funds in demat form?
While owning a demat mutual fund is free, investors must pay annual maintenance fees and other costs to maintain an active demat account.
What is the full form of SOA in Mutual Funds?
SOA stands for Statement of Accounts, which is a document provided by asset management firms to investors, giving them information about their assets and transactions.
How many nominees can I make in one mutual fund folio?
An investor can nominate up to 3 people for one mutual fund folio.

August 16, 2024

How to Check Mutual Fund Status with Folio Number?

You can see this trend of number identification everywhere, like Aadhaar, PAN card, and Passport. Banks provide an account number to identify their customers when they open an account with that bank; similarly, when you invest in mutual funds through an AMC, you are assigned an identity number in mutual funds, known as a folio number.

In this blog, we will share information about folio number and its benefits.

What is a Folio Number?

A unique number, called a folio number, is assigned to investors who invest through mutual funds. An investor uses this number to track his/her mutual fund investment account. The folio number also helps monitor an investor’s activities, such as buying, selling, dividends, and other associated activities. In principle, the folio number helps in the seamless and effective management of investments.

How do You Find Your Folio Number?

Generally, an investor can find his/her folio number in three ways.

From your fund account statement – AMC will provide you with your mutual fund account statement. In the case of SIPs, this statement is issued to you every month. You can find your folio number in the mutual fund account statement.
From Consolidated Account Statement – These are documents showing individual total investments under several folio numbers of different AMCs. Consolidated account statements are issued by Registrars like CAMS Online and KFintech.
From the Registrar’s website – You can also get your folio number from the Registrar’s website or their branch office. However, you must first prove that you are a legitimate owner of the folio. Nowadays, fund companies also provide the facility wherein you can contact the Registrar’s call center and get your folio number.

Read Also: How to Cancel Mutual Fund SIP?

How to Use Folio Number to Check Mutual Funds Status?

Method 1 – Check Status Online

An investor can sign into AMC’s website or apps, and with the help of a folio number, the investor can access the details regarding mutual fund transaction history, balance, etc.

Method 2 – Check Status by contacting AMC customer care

If you find the above method burdensome, you may directly contact your AMC through their customer care number available online, visit their office, or even email customer care to check mutual fund status by folio number. You must have your PAN number and other details handy for verification.

Method 3 – Check status through the Consolidated Account Statement

Investors receive periodic Consolidated Accounts Statements from Central Depository Services Limited (CDSL) and National Securities Depository Limited (NSDL). If you are a mutual fund investor, they provide you with folio-wise mutual fund status, performance, and value of your investment.

Method 4 – Contacting Broker

If you invest your money in Mutual Funds through a broker, you may also contact them. These brokers, with the help of AMC, provide you with a folio number to acquire real-time mutual fund status and performance. An investor must keep documents handy while contacting the broker for verification.

Method 5 – Check the Status through the Registrar’s website

Registrars like CAMS and Karvy help investors know their mutual fund status. You just need to visit their website and register using your PAN number or registered mobile number.

Who Allocates Folio Numbers?

When you invest in a mutual fund through an AMC, the AMC assigns you a folio number to your investment. Each AMC assigns its own folio number to investors for the mutual funds managed by that AMC. When you make your first contribution to the fund you are investing in, a folio number gets generated for you by the fund house or AMC.

If you have more than one share of the same mutual fund, the fund house gives you only one folio number. If an investor invests in a scheme provided by a different AMC, then the investor must create a new folio number.

Advantages of Folio Number

Now, let’s delve into the benefits of a folio number.

Accessing the consolidated view – You can approach all schemes with a single folio number through a single statement in which all the details of your investment are also mentioned along with AMC.
Tracking of investments – Through the folio number, investors track their mutual fund investments. You can get your statement of any particular period’s investment and quickly know how many units you hold in a fund.
Helps in Easy Redemption – Investors must mention or give a folio number while redeeming their mutual fund units. This makes the redemption process quick and easy.
Tax Implications – Folio number helps in accurately reporting capital gains; dividends are other income on your mutual fund investment, making the process of tax reporting easier.

Conclusion

Each mutual fund investor gets a unique folio number. Investors can also have multiple folio number investments in schemes provided by different AMCs. One practical step mutual fund investors can take toward better management of their investments is consolidating folio numbers. It would mean merging all investments under a single folio to make tracking easier. Identifying multiple folios, contacting the AMC, filling and submitting a consolidation form, and checking for changes can be quite a complex process. This will involve, among others, ease of tracking, redemption of investments, and ease of tax planning. Overall, consolidation ensures a more seamless and effective investment experience. However, it is advised to consult a financial advisor before investing.

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5	Who Regulates Mutual Funds in India?

Frequently Asked Questions (FAQs)

What should be done in case I forget my folio number?
The folio number can be obtained by viewing the mutual fund account statement, calling the fund house, and using online platforms.
Can the status of all the mutual funds that I hold be checked using a single folio number?
If all your investments are with the same fund house, then one folio number can be used to check the status of all mutual funds. For investments under other fund houses, you need to use their respective folio numbers.
Is it safe to share my folio number online?
While the folio number is usually fairly safe, it is best to check your mutual fund status through official or known mediums, as security risks can’t be ruled out altogether.
How often should I check my mutual fund status?
It is a good idea to see your status periodically — say, monthly or quarterly. That will at least let you know how your investments are performing.
Can one folio number have multiple mutual fund schemes?
Yes, multiple mutual fund schemes could be under the same folio number.

August 8, 2024

Who Regulates Mutual Funds in India?

In the fast-paced world of finance, selecting an investment option can be difficult. Mutual funds, which combine investor funds to invest in a variety of assets, present an attractive option. It is extremely important to maintain investor confidence in the markets and ensure that these funds function responsibly and within the laws. The Securities and Exchange Board of India (SEBI) is responsible for regulating India’s securities market, including mutual funds.

This blog explores SEBI’s important function in overseeing mutual funds, protecting the interests of investors, and promoting a robust investment environment.

SEBI Regulates Mutual Funds in India

Imagine investing your hard-earned money in a mutual fund, only to later discover that it was mismanaged. Therefore, it is important to protect investors and ensure fair and transparent functioning of the industry. The Securities and Exchange Board of India (SEBI) regulates the mutual fund industry in India and performs the following functions:

SEBI establishes rules and regulations to protect the interests of investors.
The regulation aims to restrict fund managers from prioritizing their interests and upholding the integrity of the market.
SEBI regulations are designed to promote the development and expansion of the mutual fund industry.

These regulations can help authorities create and maintain a safe and trustworthy investment environment, promoting investor confidence and stability in the financial markets.

Important Regulations and Guidelines

SEBI has established several guidelines to protect investor interests and maintain transparency. Some of these are listed below:

SEBI issues a comprehensive set of regulations that outlines the framework for establishing, operating, and regulating mutual funds in India.
It outlines the norms for mutual fund advertisements and marketing materials to ensure fairness.
SEBI regulations require mutual funds to disclose their holdings periodically, which enables investors to make informed decisions.
SEBI decides the roles and responsibilities of different entities in a mutual fund, such as sponsors, trustees, AMCs, custodians, and registrar & transfer agents (RTAs).
SEBI requires mutual funds to have a strong system in place for addressing investor grievances and measures to prevent insider trading and fraudulent practices.
SEBI mandates clear and comprehensive disclosures in offer documents and regular reports. This consists of information on investment objectives, fees, risks, and performance.

Role of AMFI

The Association of Mutual Funds (AMFI) is responsible for regulating the mutual fund industry in India under the supervision of SEBI. The key roles of AMFI are listed below:

AMFI focuses on ethical conduct among AMCs and intermediaries, which helps minimize fraudulent activities and ensures fair treatment of investors.
It acts as a bridge between SEBI, the government, and the mutual fund industry.
It facilitates transparency in the mutual fund industry by implementing operational guidelines for all AMCs.
AMFI distributes important information regarding mutual funds on its websites, such as the daily NAV and the performance of all mutual fund schemes.
AMFI issues a unique ARN (AMFI Registration Number) to mutual fund distributors. ARN certifies that the distributor has knowledge of dealing in mutual funds.
It is also involved in making mutual funds popular through mass media.

History of Mutual Funds

The year 1963 marked a milestone in the history of mutual funds in India when the Unit Trust of India was established through an Act of Parliament. UTI operated under the regulatory supervision of the Reserve Bank of India.

In 1964, UTI introduced its first mutual fund scheme called “Unit Scheme 1964”. This stage laid the foundation of mutual funds, encouraging retail investors to invest in the stock market.

In 1987, The government permitted the public sector banks, Life Insurance Corporation (LIC), and General Insurance Corporation (GIC) to launch mutual fund schemes.

The arrival of new competitors intensified the competition, and investors had access to various new schemes catering to various risk profiles and financial objectives. The increased complexity resulted in the establishment of SEBI, which started overseeing the mutual fund industry, except UTI, initially.

Structure of Mutual Funds

As per SEBI, the structure of mutual funds in India is three-tiered and consists of the following entities:

Sponsor: The sponsor is the initial promoter of the mutual fund. They establish the trust and appoint a trustee and an asset management company (AMC). Sponsors are usually banks and financial institutions. For example, SBI is the promoter of the SBI mutual fund.
Trust and Trustee: The mutual fund operates as a trust. The trustee is like a legal guardian for the fund’s assets. They make sure that AMC works in the interest of the investors.
Asset Management Company (AMC): AMC manages the mutual fund. They employ fund managers who make investment decisions based on their research and invest money collected from investors into different asset classes.

In addition to the three main tiers, other participants also play a key role in the functioning of the mutual fund.

Custodian: It holds and safeguards the securities of a mutual fund.
Registrar and Transfer Agents (RTA): They keep a record of all investors, manage and provide periodic investment statements, and facilitate transactions such as purchase, and redemption of mutual fund units.
Distributors: They sell mutual fund units to investors. These intermediaries recommend mutual funds to investors and, in return, get commissions from the AMCs.

Conclusion

To wrap it up, SEBI plays an important role in regulating India’s mutual funds. Investor-centric regulations and emphasis on market integrity ensure a fair and transparent investment environment that benefits investors. Understanding SEBI’s functions and guidelines will empower investors to make better decisions and navigate the mutual fund landscape easily.

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4	What is an Open-Ended Mutual Fund & How to Invest in it?
5	How to Cancel Mutual Fund SIP?

Frequently Asked Questions (FAQs)

How do I start investing in mutual funds?
You can invest in mutual funds through an AMC or a registered distributor after completing the KYC procedure.
Who regulates mutual funds in India?
The Securities and Exchange Board of India (SEBI) regulates mutual funds in India.
What are the different types of mutual funds based on asset class?
There are various types of mutual funds depending on the asset class, such as equity funds, debt funds, and hybrid funds.
When did mutual funds start in India?
The journey of mutual funds in India began in 1963 with the establishment of the Unit Trust of India (UTI).

July 30, 2024

Long-Term Capital Gain (LTCG) Tax on Mutual Funds

People invest their hard-earned money in mutual funds to reach their financial objectives. The assets held by mutual funds generally increase in value over time, but this is not a surety. However, investors must pay taxes on the profits these investments have generated. In this blog post, we’ll discuss the idea of taxes on long-term capital gains on mutual funds.

What is LTCG Tax?

“Long-Term Capital Gain” (LTCG) is the name of the tax applied to the gains made when selling specific assets after a set amount of time. To put it simply, the government taxes gains earned on an asset known as a long-term capital gain when an investor sells it after holding it for a specific amount of time.

Features of LTCG tax on Mutual Funds

Long-term capital gains taxes have the following features:

LTCG is levied when an investor sells an asset after holding it for a certain period.
The rate of tax depends on the asset class.
The government provides certain exemptions if capital gain arises in some asset classes.
This is chargeable under the head Capital Gain of Income Tax Act.

LTCG on Mutual Funds

Mutual funds come in various forms according to asset classes, and depending on how long you keep the assets, you may have to pay long-term capital gain tax on them.

Equity Mutual Fund

Mutual funds classified as equity funds invest primarily in equity-related securities; the holding duration determines how these funds are taxed. The gain will be referred to as a long-term capital gain if the holding period exceeds 365 days. Equity mutual funds are suitable for investors willing to assume additional risks in exchange for a higher return.

Taxation on Equity Mutual Fund

As per the Income Tax Act, the long-term gains made on equity mutual funds are taxed at 10% over and above 1 lakh. Let us understand this with an example.

On January 1, 2022, an individual invested INR 1 lakh in an equity-oriented mutual fund. On February 25, 2023, he sold it for INR 2.5 lakh, realizing a gain of INR 1.5 lakh due to bullish market conditions.

The investor will not pay taxes on the INR 1 lakh, while the remaining INR 50,000 will be subject to 10% tax. The total amount to be paid as taxes is INR 5,000.

Debt Mutual Fund

Mutual funds that invest your money in fixed-income instruments like corporate bonds, government bonds, debentures, etc., are known as debt mutual funds. Debt funds, which offer lower returns than equities mutual funds, are a good option for investors not ready to take on a lot of risk. A mutual fund falls under the category of debt mutual fund if it invests less than 35% in equity.

Taxation on Debt Mutual Fund

In the past, gains on debt funds held for longer than three years were regarded as long-term and were subject to indexation. Gains realized on these funds before the three-year time frame are classified as short-term capital gains and are subject to taxation as per the individual’s tax slab rate. However, under the current law, profits on these funds are taxed according to your income tax slab, which varies from 10% to 30% depending on your income tax bracket, regardless of the holding term.

If an individual is subject to a 30% tax bracket, invested INR 1 Lakh in a debt-oriented mutual fund on January 1, 2021, and sold it on June 10, 2024, but did so after three years and realized a profit of INR 50,000, he will be liable to pay taxes based on his 30% income tax slab, which means his total tax liability will be approximately INR 15,000.

Hybrid Mutual Fund

The portfolios of hybrid mutual funds are allocated to debt and equity. Like equities and debt funds, the taxation of hybrid funds is contingent upon the holding duration and the portfolio’s asset allocation.

Equity-Oriented Hybrid Funds

The fund will be classified as an equity-oriented hybrid fund if at least 65% of its total assets are allocated to equities and equity-related securities. The gains from equity-oriented hybrid funds are subject to a 10% tax on profits exceeding one lakh Indian rupees upon sale after one year.

Debt-Oriented Hybrid Funds

A mutual fund is classified as debt-oriented if it has an equity exposure between 35% and 64%. The gains realized after 36 months will be considered long-term gains and taxed at 20% with indexation benefits.

For example, if an individual invested INR 1,00,000 in a fund with approximately 60% of its total allocation in debt and the remaining 40% in equity, the fund will be regarded as a debt-oriented hybrid fund. The investor redeemed his investment for INR 1,50,000 and realized a gain of INR 50,000 after four years.

Purchase value after indexation = Original Amount * ( Current year CII / Purchasing year CII)

Here, CII = Cost Inflation Index

Let the CII in the purchase year be 102 and the CII in the current year be 110

Purchase value after indexation = INR 1,00,000 * (110/102) = INR 1,07,843

Total realized gain with indexation benefit = INR 1,50,000 – INR 1,07,843 = INR 42,157

Tax Payable = 20% * INR 42,157 = INR 8,431

Exemptions on Capital Gains

Apart from the INR 1,00,000 exemption on equity mutual funds, an investor can also claim the following exemptions:

Section 10(38)

Under this section, the long-term capital gains resulting from the transfer of equity and equity-oriented mutual funds are exempt from taxes if the following conditions are met:

Transfer should be after October 1, 2004.
It should be a long-term asset.
Security transaction taxes are applicable.

Section 54F

The section 54F allows investors to save capital gains taxes if the proceeds of the sale of a long-term capital asset are used to buy or construct a residential house in India. The tax exemption can be claimed if:

The property must be purchased one year before or two years after the sale of mutual funds.
The property must be constructed within three years from the sale of mutual funds.

Conclusion

To sum up, an investor must be aware of the taxes applicable to the gains realized by their mutual fund investments. A long-term investment horizon has more tax benefits compared to investing for a short time. However, the investment horizon is determined by the individual’s financial conditions, so you should speak with your investment advisor before making decisions.

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4	What is TREPS & Why Mutual Funds Invest in it?
5	Debt Mutual Funds: Meaning, Types and Features

Frequently Asked Questions (FAQs)

In the case of equity mutual funds, how much long-term capital gain is tax-free?
Up to INR 1,00,000 in long-term capital gains on equity-oriented mutual funds is exempt from taxes.
Is the amount of tax automatically deducted from the profit?
No, tax is not subtracted automatically; investors must compute gain and pay tax when they file their income tax return.
What tax-saving options are available in mutual funds?
The Equity Linked Savings Scheme (ELSS) is a mutual fund investment that can assist investors save money on taxes by allowing them to claim a maximum deduction of INR 1.5 lakhs under the 80C of the Income Tax Act.
How to avoid LTCG taxes on mutual funds?
An investor can avail exemption under Section 10(38) and Section 54F.
How are debt mutual funds taxed in India?
In India, capital gains from debt mutual funds are included in your income and subject to taxation according to your income tax bracket.

July 23, 2024

Category: Mutual Funds

Who are Mutual Fund Distributors?

Types of Mutual Fund Distributors

Top 10 Mutual Fund Distributors in India 2025

Overview of the Top Mutual Fund Distributors in India

1. State Bank of India

2. NJ Wealth

3. HDFC Bank

4. Axis Bank

5. Prudent Corporate

6. ICICI Bank

7. Kotak Mahindra Bank

8. 360ONE Distribution (ET Money)

9. Anand Rathi Wealth

10. HSBC Bank

Top 10 Individual Mutual Fund Distributors in India

How to Choose the Right Distributor in

Conclusion

Frequently Asked Questions (FAQs)

What is a mutual fund distributor?

How do I check if a distributor is registered?

Are online platforms better than traditional distributors?

Do mutual fund distributors charge fees from investors?

Can I switch my mutual fund distributor later?

What is SIP and why invest through SIP Apps?

10 Best Apps for SIP Investment in India (2025)

Overview of 1o Best Investment Apps in India

1. Groww

2. Zerodha Coin

3. Kuvera

4. Paytm Money

5. INDmoney

6. ET Money

7. Upstox

8. Fisdom

9. MyCAMS

10. KFinKart

Conclusion

Frequently Asked Questions (FAQs)

Which is the best app for SIP investment in India?

Are SIP apps safe to use?

Can I start SIP with just ₹100?

Do SIP apps charge any fees?

Can I stop or pause SIP anytime through apps?

Who is a Fund Manager?

Top 10 Fund Managers in India 2025

Overview of the Top 1o Fund Managers in India

1. Sankaran Naren

2. R. Srinivasan

3. Shreyash Devalkar

4. Jinesh Gopani

5. Harsha Upadhyaya

6. Sohini Andani

7. Manish Gunwani

8. Aniruddha Naha

9. Chandraprakash Padiyar

10. Ankit Agarwal

How to Choose the Right Fund Manager as an Investor?

Conclusion

Frequently Asked Questions (FAQs)

Who is the best mutual fund manager in India right now?

How to evaluate a fund manager’s performance?

Does a fund manager really impact mutual fund returns?

Should beginners consider fund managers while investing?

Can the same fund perform differently under a new manager?

What are Open-Ended Mutual Funds?

How Do Open-Ended Mutual Funds Work in India?

How to Invest in Open-Ended Mutual Funds?

Advantages of Open-Ended Mutual Funds

Disadvantages of Open-Ended Mutual Funds

Difference Between Open-Ended and Close-Ended Mutual Funds

Conclusion

Frequently Asked Questions (FAQs)

How frequently does an open-ended mutual fund update its NAV?

Do open-ended mutual funds offer diversification?

Can I redeem my investment from an open-ended mutual fund at any time?

How are open-ended mutual funds regulated in India?

Are open-ended mutual funds suitable for a short-term investment horizon?

What is Registrar and Transfer Agent

Roles and Responsibilities of RTA

2. R. Srinivasan

9. Chandraprakash Padiyar

10. Ankit Agarwal