Category: Mutual Funds

What Is Stock SIP?

Saving money is a common goal for everyone aiming for a secure future. Keeping cash in a bank account often falls short against rising daily costs. The financial world provides many simple tools to grow wealth steadily over time. People often assume that participating in financial growth requires a huge starting amount. This is simply a myth.

Regular and small contributions can create a massive safety net over a long period. This disciplined approach removes the worry of finding the perfect moment to start investing. It turns a tiny monthly habit into a solid financial foundation for the future. Even individuals with a very tight budget can easily join this wealth creation journey today.

What is Stock SIP

Now, it is time to answer the main question on every beginner’s mind. What is stock sip? It is a smart feature that allows investors to buy shares of a particular company at regular intervals. Instead of a one time big purchase, people can invest a small fixed amount every month.

This process is exactly how a sip in stocks works for retail investors. Think of it like creating a personal mutual fund, buying one company at a time. When individuals explore a sip in share market, they enjoy the freedom to pick their favorite businesses. The broker’s system will automatically buy those shares on a chosen date every single month.

This systematic approach is becoming very popular among modern investors today. A sip in stock market operates similarly to regular mutual funds but focuses entirely on individual companies. It gives individuals direct ownership of the shares in their own accounts. Setting up a stock sip is a brilliant way to accumulate wealth slowly without worrying about daily market changes.

Is stock SIP a good choice

Here are the main reasons why it makes a lot of sense for everyday investors:

Removes market timing worries: Investors do not have to worry whether prices are too high or too low on any given day. They just keep investing regularly regardless of market conditions.
Averages the purchase cost: When market prices drop, the fixed monthly amount automatically buys more shares. This helps to balance the overall buying price over a long period.
Highly affordable entry: Individuals do not need huge savings to start their investment journey. They can begin with an amount as low as Rs 500 or Rs 1000 per month.
Builds a focused portfolio: Investors have complete control over which specific companies they want to own. They are not forced to buy a bundle of unknown companies.

Features of Stock SIP

Understanding the core features helps in making much better financial decisions. Here are four key characteristics of this popular investment tool.

Amount or Quantity Based: People can choose to invest a fixed amount like Rs 2000 every month. Alternatively, they can instruct the broker to buy a fixed quantity, like two shares every month.
Automated Execution System: Once the instruction is set with a reliable broker, the buying process happens automatically. The money is simply deducted from the linked trading or bank account.
Pause and Modify Options: Investors can easily pause the investment if they face a temporary cash shortage. They can also change the monthly amount in the future without paying any penalty.

Benefits of Stock SIP

This method offers several advantages for long term wealth seekers. Let us look at four major benefits in detail.

Promotes Financial Discipline: It forces individuals to save and invest a portion of their income regularly. This consistent habit is highly crucial for long term financial success.
Harnesses Rupee Cost Averaging: This strategy lowers the overall purchase cost of shares over a longer period. Since the investment amount is fixed, more units are bought at lower prices.
Removes Emotional Trading Decisions: Stock markets are largely driven by human fear and greed. Automating the purchase process keeps dangerous emotions out of the investment decision.
Powers Long Term Compounding: Holding shares for a long time allows the money to multiply steadily. Reinvesting any dividends received makes the initial money grow much faster over the years.

Limitation of Stock SIP

Every financial tool has its own set of drawbacks. It is very important to know the limitations before starting. Here are four limitations to consider carefully.

High Concentration Risk: Putting money into just one or two companies can be quite dangerous. If those specific companies perform poorly, the entire investment portfolio suffers heavily.
Requires Deep Market Knowledge: Investors must research and select fundamentally strong companies entirely by themselves. A bad stock choice will lead to losses regardless of the highly disciplined approach.
Needs Continuous Monitoring: Company management or industry rules can change quite unexpectedly. Investors must track the news and quarterly results of their chosen companies regularly.
Impact of Brokerage Charges: Some traditional brokers charge fees for every single transaction placed. Frequent buying in small amounts might result in high overall charges, which can reduce the final profits.

Difference between Stock SIP and Mutual fund SIP

To clear any confusion, a simple comparison between the two popular investment methods is highly useful.

Feature	Stock SIP	Mutual Fund SIP
Investment Approach	Invests money directly in shares of a single selected company.	Invests money in a basket containing many different companies.
Management Style	Managed entirely by the individual investor through self research.	Managed by professional and highly experienced fund managers.
Risk Level	Generally higher due to very limited portfolio diversification.	Relatively lower as the risk is spread across many market sectors.
Monitoring Requirement	Requires constant tracking of specific company news and results.	Requires minimal tracking by the individual retail investor.
Associated Costs	Brokerage charges may apply per order placed by the user.	Managed through a standard annual expense ratio fee.

Who should invest in stock SIP

Not every investment strategy suits every single person in the market. Based on expert insights, here is a look at who should consider this specific method.

Risk Tolerant Investors: Direct exposure to individual companies carries higher risk than diversified funds. Individuals who understand market movements and can handle daily price fluctuations are very good candidates.
Long Term Investors: This strategy shines brightest over a long period. People who plan to stay invested for five to ten years benefit the most from regular investing and compounding.
Experienced Investors: Picking the right company requires some basic financial knowledge. Individuals who know how to read company financials and track news will find this highly rewarding.
Investors Seeking Flexibility: Some people want complete control over their hard earned money. This method is ideal for those who wish to choose specific companies and adjust their investment amounts freely.

Steps to invest Stock SIP

Starting this journey is very simple today thanks to modern digital technology. Here is a clear step by step guide to begin investing smoothly.

Step 1: Individuals need to open a Demat and trading account with a reliable platform.
Step 2: log into the chosen platform and complete the basic KYC verification process. This step usually requires a PAN card, an Aadhaar card, and a linked bank account.
Step 3: Do some basic research and pick a fundamentally strong company to invest in. Look for businesses with consistent profit growth, low debt, and highly capable management teams.
Step 4: Find the systematic investment option in the broker application dashboard. Create a new basket or instruction and enter the exact name of the chosen company.
Step 5: Decide the monthly amount or quantity and the exact date for the purchase. For instance, an investor can set an instruction to buy Rs 2000 worth of shares on the 5th of every month.

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

Conclusion

Stock SIP simply helps to create wealth in a very disciplined manner. It has high risk due to limited diversification. But one can eliminate this risk by doing proper research and Create money by starting early, staying disciplined, and being highly patient with investments.

This method simplifies the complex stock market into a very easy monthly routine. While it carries certain risks, the rewards for a patient investor are often highly satisfying. Taking that first small step towards regular investing today can open the doors to a very bright financial future. Pocketful offers seamless investing in stocks and ETFs with zero brokerage on delivery trades and lifetime zero AMC.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Best Thematic Mutual Funds in India
2	Types of Mutual Funds in India
3	Best Long-Term Mutual Funds to Invest in India
4	Best SIP Mutual Funds in India
5	Debt Mutual Funds: Meaning, Types and Features
6	How to Check Mutual Fund Status with Folio Number?
7	Best Money Market Mutual Funds in India
8	Mutual Fund Fees & Charges in India
9	Best Performing Mutual Funds of the Last 10 Years
10	History of Mutual Funds in India

Frequently Asked Questions (FAQs)

What is Stock SIP Meaning?
It is a method to buy specific company shares regularly using small, fixed amounts.
What are the main benefits?
It averages out purchase costs and builds long term financial discipline effectively.
How to use this SIP feature?
Select a company, set a fixed monthly amount, choose a date, and automate payments.
Is a Demat account needed?
Yes, a Demat account is mandatory to securely hold the purchased shares digitally.
Can investors stop the payments?
Yes, individuals can easily pause, modify, or stop the investments anytime without penalties.

June 26, 2026

Mutual Fund Redemption Explained

Most investors spend ages trying to work out where to put their cash, but only a tiny handful of them think about how to get it back – until of course they actually need it. That’s where redemption in mutual fund investing comes in. Whether you’re taking out cash to hit a goal, to cover an unexpected bill or simply because you’ve switched to a different fund that does better for you, having a handle on how this works can save your bacon from nasty surprises like exit loads & delayed payouts, or worse – having to pay the wrong price for your shares.

Meaning of Mutual Fund Redemption

Redemption in a mutual fund simply means selling your mutual fund units back to the Asset Management Company (AMC) and receiving cash in return. When you invest in a mutual fund, you are allotted units based on the Net Asset Value (NAV) on that day. When you redeem, those units are cancelled, and you get the equivalent money based on the NAV on the date of redemption credited to your bank account.

Think of it this way, you bought 1,000 units at an NAV of ₹50 (total investment: ₹50,000). If the NAV has risen to ₹75 when you redeem, you receive ₹75,000. That ₹25,000 difference is your gain.

The mutual fund redemption meaning is, therefore, your formal exit from a scheme, either partially or completely.

Partial vs Full Redemption

Type	What It Means	Best For
Partial Redemption	Withdraw a specific amount or number of units	Meeting a short-term need while staying invested
Full Redemption	Exit the scheme entirely	Goal completion or scheme switching
SWP (Systematic Withdrawal Plan)	Withdraw a fixed amount at regular intervals	Retirees or investors needing periodic cash flow

How to Redeem Mutual Funds Online Step by Step

How to redeem mutual funds online is one of the most searched queries among investors, and for good reason. The process is faster, paperless, and can be done from your phone in minutes.

Here’s how the mutual fund redemption process works online:

Step 1: Log in to your platform. Open the mutual fund app or AMC website where your investment is held. Enter your credentials and navigate to the “My Investments” or “Portfolio” section.
Step 2: Select the fund. Choose the scheme from which you want to withdraw. Click on “Redeem” or “Sell.”
Step 3: Select the redemption category. Should you be looking for a redemption of a particular sum, for example, Rs. 10,000, or a particular number of units, such as 200 units? If you merely wish to receive a partial refund of your investment, then go ahead and simply enter the amount directly.
Step 4: Confirm the details. The website will show the relevant NAV depending on the cut-off time, along with the approximate exit fee and net payment amount.
Step 5: Validate your redemption request. Finish your OTP validation on your mobile or email ID that has been registered.
Step 6: Receive funds in your bank account. Once the platform processes the redemption, the cash is transferred to your bank account using NEFT/RTGS – all within the time frame laid down by SEBI.

Important: Always ensure your KYC is updated and your registered bank account details match with the AMC. A mismatch can delay or reject the payout.

Mutual Fund Redemption Process Offline Method

Not comfortable going online? You can still redeem offline by:

Visiting the nearest AMC branch or Registrar & Transfer Agent (RTA) office
Submit a physical Redemption Request Form with your folio number, fund name, and units/amount to redeem
Carrying a copy of your PAN card and passbook for verification

The offline route takes slightly longer but works just as well. For most investors, the online method through platforms like Pocketful is significantly faster and easier.

SIP Redemption Time: What You Need to Know

SIP redemption time – Where most investors get hung up is a nasty area of confusion for many investors. Now here’s the one thing to keep in mind: each SIP payment gets treated like a completely separate buy with its own clock to beat.

Let’s say you set up a monthly SIP in an equity fund that’s got a 1% exit load that’s gonna shut you for a year. You’ve been chugging along since January 2025 and decide to cash out in January 2026. The thing is, only that very first payment in January 2025 has been around long enough to get out of the exit load zone. Every other instalment is still stuck in that hole and will get hit with the exit load.

This is why figuring out SIP redemption time really counts. By cleverly timing your redemptions so that each instalment has aged enough to get out of the exit load period, you can save yourself a pretty penny over the long haul.

For ELSS funds – remember every single SIP instalment has some mandatory 3-year lock-in time you can’t get around. You won’t be able to cash out a January 2025 instalment before January 2028 regardless of when you started the SIP.

Mutual Fund Redemption Timeline How Long Does It Take?

SEBI regulates the payout timelines for all mutual fund redemptions. Here’s a quick reference:

Fund Category	Redemption Timeline
Liquid & Overnight Funds	T+1 working day
Debt Funds (short to medium term)	T+2 working days
Equity Funds	T+3 working days
Fund of Funds / International Funds	T+3 to T+5 working days( May vary by scheme)

T = the day you submit the redemption request (before cut-off time)

What Can Delay Your Payout?

Submitting the request after 3:00 PM the NAV shifts to the next business day
Bank holidays or weekends only business days count
Incorrect or mismatched bank account details in the AMC folio
Incomplete KYC your request may be put on hold

Cut-Off Time for Mutual Fund Redemption

Cut-off time determines which day’s NAV is applied to your redemption. As per SEBI guidelines:

Before 3:00 PM (weekday) – Same day’s NAV applies
After 3:00 PM or on a holiday – Next business day’s NAV applies

For liquid and overnight funds, the cut-off is 1:30 PM for same-day NAV. Keep this in mind if you need urgent liquidity from such funds.

Exit Load: The Charge You Must Know About

An exit load is a fee the AMC deducts if you redeem before a specified holding period. It is designed to discourage short-term churning and protect long-term investors in the fund.

How Exit Load Is Calculated

Exit Load = Redemption Amount × Exit Load Percentage

Example: You redeem ₹50,000 from an equity fund within 10 months. The fund charges a 1% exit load within 12 months.

Exit Load = ₹50,000 × 1% = ₹500

You receive ₹49,500 instead of ₹50,000.

Typical Exit Load Structure

Fund Type	Exit Load	Holding Period
Equity Funds	1%	If redeemed within 12 months
ELSS Funds	Nil (after lock-in)	3-year mandatory lock-in
Liquid / Overnight Funds	Nil or very low	Usually 0–7 days
Debt Funds	0% to 0.5%	Varies by scheme

Always check the Scheme Information Document (SID) for the exact exit load applicable to your fund before redeeming.

Tax on Mutual Fund Redemption

Redemption is a taxable event in India. The tax treatment depends on the fund type and how long you stayed invested:

Equity Mutual Funds

Holding Period	Gain Type	Tax Rate
Less than 12 months	Short-Term Capital Gain (STCG)	20%
More than 12 months	Long-Term Capital Gain (LTCG)	12.5% (above ₹1.25 lakh exemption)

Debt Mutual Funds

From April 1, 2023 onwards, any gains you make from buying debt funds will be taxed according to how much you earn in a year – so your income tax rate decides how much tax you pay on those gains. Forget trying to figure out whether it’s short or long term, it just doesn’t matter anymore for debt funds.

Note: Remember, the exit load and capital gains tax are two different things that can both whack you on the same redemption – always bear both of these costs in mind when you’re planning to cash out.

The Right Moment to Sell Your Mutual Fund?

Redeeming your mutual fund isn’t always a bad call but when you do, timing really is everything. Here are some good reasons to consider cashing out:

Mission accomplished: You put the money in to pay for your kid’s education and now that’s sorted
Fund not delivering: A fund that’s been consistently under-performing for 3 years – even when the market has bounced back – might be a good one to get rid of
Shifting gears: As you near retirement you might need to switch from having mostly equity to mostly debt in your portfolio
Getting the cash you need: Unexpected medical bills or other financial emergencies can leave you scrambling for cash

And here are some reasons when it’s probably best to hold on:

Panic selling because the market is being a bit dodgy – that’s the time to hang tight
Making a decision based on what you read in the news
Freaking out during a market dip – this is the moment to stay calm and keep long-term plans in place

How to Invest in Mutual Funds with Pocketful

If you want to start investing in mutual funds the right way, Pocketful makes the entire process simple and structured. Here’s how you can get started:

Step 1: Create Your Account

The first step is to download the Pocketful app and sign up. The registration process is quick and takes only a few minutes.

Enter your mobile number and verify with OTP
Set your login credentials
Access your personal dashboard

Step 2: Complete Your KYC

KYC is mandatory before you can invest in any mutual fund in India. On Pocketful, the entire KYC process is online and paperless.

Add your PAN and Aadhaar details
Enter your bank account information
Complete the verification process

Step 3: Select a Mutual Fund

Once your account is ready, you can browse mutual funds based on your goal, risk appetite, and investment horizon. Pocketful lists funds across all major categories.

Choose from equity, debt, hybrid, or index funds
Filter by AMC, fund rating, or past performance
Compare expense ratios before finalising

Step 4: Start Your SIP or Lump Sum Investment

Decide how you want to invest through a monthly SIP or a one-time lump sum. SIPs can be started with as little as ₹100 per month.

Set your SIP amount and date
Choose the fund and confirm your investment
Track your SIP performance directly from the dashboard

Pocketful lets you get in on direct mutual fund plans without having any brokerage commissions to pay, so the expense ratio doesn’t balloon and you actually get to keep more of your cash invested.

Conclusion

Once you know the ropes, the mutual fund redemption process is pretty straightforward. From getting to grips with redeeming in mutual funds to carefully picking when to take your money out via a SIP, every call you make is ultimately going to affect how much real cash you end up with in your pocket. Don’t forget to factor in those exit loads, the time at which the NAV gets cut off and the tax implications before you go ahead and redeem. Then, when the time comes to dump your shares or get in on some new ones, you can do it commission-free with Pocketful – no brokerage on delivery and free mutual fund investing means keeping the bulk of whatever the market decides to give you.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Top Gold Mutual Funds in India
2	Best Silver Mutual Funds to invest in India
3	How to Build a Mutual Fund Portfolio
4	Best Gold Investment Schemes in India
5	Best Money Market Mutual Funds in India
6	Best Thematic Mutual Funds in India
7	Top 10 Mutual Fund Distributors in India
8	Best Corporate Bond Funds in India
9	Best Long-Term Mutual Funds to Invest in India
10	Best Mid-Cap Mutual Funds in India

Frequently Asked Questions (FAQs)

What is Redemption in Mutual Fund Investing?
Redemption in mutual fund investing is basically selling your mutual fund units back to the AMC, and getting the equivalent cash in return, based on the price that applies on the actual day you sell – either partially or in full.
How Long Does Mutual Fund Redemption Take Anyway?
It really depends on what sort of fund you have. Liquid funds settle within a day, debt funds settle in two working days, and equity funds take about three working days after you put in your redemption request.
What’s the Deal with SIP Redemption Time?
Each SIP instalment has its own little timeline, so to speak. Your cash is usually credited to your account within one to three days after you make the redemption request – but the exit load period for each instalment will still be calculated from the date it was actually purchased.
Can I Redeem My Mutual Fund Any Time I Want?
Yes, open-ended mutual funds can be redeemed at any point in time. But if you’re thinking of redeeming from an ELSS fund, you’re going to have to wait three years for the lock in period to expire – and if you do it before then, you might get hit with an exit load from another fund.
How Do I Go About Reducing my Mutual Funds Online?
You just log in to your mutual fund account, pick the fund, choose the amount you want to redeem, double check all your details. Then, just follow the prompts, enter your OTP, and the money will get credited to your bank account within the standard timeframe set by SEBI.
Is Mutual Fund Redemption Taxable?
Yep, it is. Equity fund gains that haven’t been held for a year will get taxed at 20% – short-term capital gains. And if you are holding equity fund gains for more than a year but over 1.25 lakh in value, then you will be taxed at 12.5% – long-term capital gains. Debt fund gains are taxed based on your income tax rate.
What Time is the Cut-Off for Mutual Fund Redemption?
For most funds, it’s 3:00 PM on any given business day. That way, if you place a request before then, you’ll get the price that applies that day – but if you place it after that, the price will be for the next business day.

June 23, 2026

What Is NAV in Mutual Funds?

NAV is a key factor people look at when investing in mutual funds. It is assumed that a lower NAV is better. This will offer you good returns when the mutual fund grows. But even after this, it is wrong to assume that a good NAV is always one which is lower.

This is why you must know what is a good NAV for a mutual fund. By doing so, you can actually plan your investment better. But the question is how?

So, read this guide to know what a good NAV is. But before that, let us explore the meaning of NAV.

NAV Full Form and Meaning

The NAV full form is Net Asset Value. In the mutual funds, the value of one unit of the fund is shown after all the assets and liabilities are considered. This value is calculated at the end of every trading day.

So, when you buy or sell mutual funds, the value is calculated based on the NAV.

No matter whether you invest in a lump sum or SIP, the meaning of the NAV remains the same. But the benefit that you get is when you invest via SIP. The NAV keeps on changing. So, if the NAV is low, you will be allotted more units. This will give you benefits with long-term investing.

How Is NAV Calculated?

Mutual fund houses calculate NAV using a standard formula.

NAV = (Total Assets – Total Liabilities) ÷ Total Outstanding Units

Where:

Total Assets include stocks, bonds, cash holdings, and other investments.
Total Liabilities include operating expenses and other obligations.
Outstanding Units represent the total units held by investors.

Example of NAV Calculation

Suppose a mutual fund has:

Total assets worth ₹500 crore
Liabilities worth ₹20 crore
24 crore outstanding units

To find NAV, let’s find the actual net value first.

₹500 crore – ₹20 crore = ₹480 crore

Now, let’s divide it by the units;

₹480 crore ÷ 24 crore units = ₹20

NAV = ₹20 per unit.

Does NAV Determine Mutual Fund Returns?

This is a common question that people ask. Many people think that lower NAV means better returns and profits.

But in real conditions, this is not. The returns are not based on the NAV of the mutual funds. To understand this, here is a quick example for you:

Fund	NAV	Investment Amount	Units Purchased
Fund A	₹20	₹10,000	500
Fund B	₹100	₹10,000	100

Now, from the comparison, one thing is clear: NAV has a direct impact on the units allotted.

Now, there are chances that both these grow by the same percentage, and so your returns will be the same. If Fund A has an annual return of 2% and Fund B has an annual return of 18%, the latter will provide higher returns irrespective of its NAV.

So, as an investor, you would need to focus on factors like market conditions, fund strategy, and portfolio quality.

What Is a Good NAV for a Mutual Fund?

The definition of good NAV is not linked to the amount in any way. It is all based on the mutual fund and management. Also, a good NAV will differ for every investor.

One who is looking to invest a low amount might look for a low NAV, so that more units can be allotted. A person looking for wealth creation might look for a fund with good returns even when the NAV is high. So, this is good for them.

So, some factors that might contribute to the same are:

Historical performance
Risk-adjusted returns
Fund manager experience
Portfolio diversification
Expense ratio
Investment objective
Consistency across market cycles

These factors provide a clearer picture of a fund’s potential than its NAV.

Read Also: What Is iNAV in ETFs?

Why Some Funds Have Higher NAVs

Many investors wonder why certain mutual funds have NAVs of ₹300, ₹500, or even higher.

This usually happens because the fund has been operating successfully for a long period.

As the underlying investments appreciate over time, the NAV gradually increases.

For example:

A fund launched at ₹10 NAV may grow to:

₹25 after a few years
₹80 after a decade
₹300 or more over a longer period

A higher NAV often reflects growth accumulated over time rather than an expensive investment.

Why New Mutual Funds Usually Have Lower NAVs

New Fund Offers (NFOs) are generally launched at an NAV of ₹10. This is why many people think that the new funds are cheaper compared to those already existing in the market.

But if you evaluate this, you might find that there is no benefit for you in general.

Consider these two scenarios:

Existing Fund: NAV ₹100
New Fund: NAV ₹10

If both funds invest in similar stocks and generate identical returns, the investor’s percentage gain will be the same.

A lower NAV only means you receive more units. It does not mean you earn higher returns.

How Much NAV Is Good in Mutual Fund Investments?

When investors ask, how much NAV is good in mutual fund investing, the answer is simple.

The NAV itself is not a measure of quality.

Instead of looking for a specific NAV level, evaluate whether the fund:

Meets your investment goals
Has delivered consistent performance
Maintains reasonable risk levels
Has a strong portfolio
Is managed by an experienced fund house

A fund with a ₹300 NAV may be a better investment than one with a ₹10 NAV if it has a stronger track record and better fundamentals.

Factors That Matter More Than NAV

When you are investing in mutual funds, you should focus on various factors. These are as follows:

1. Fund Performance

Start by checking the fund’s performance in the past years. Consider 1,3,5, or even 10 years history check. If there is stability in long-term, then it is better for you.

2. Risk Profile

A fund should align with your risk tolerance. This includes the following things to check for ease:

Large-cap funds generally carry lower risk.
Mid-cap funds carry moderate risk.
Small-cap funds can be more volatile.

3. Expense Ratio

The expense ratio affects your net returns. So, if you are checking a fund, look for one with a lower expense ratio, as this will ensure the maximum amount gets invested. This is beneficial in longer run.

4. Fund Manager Track Record

The experience and investment approach of the fund manager can influence performance over time.

5. Portfolio Quality

Check the sectors, stocks, and assets held by the fund. If a fund is one with proper diversification, then the risk will be better managed, and so your returns will be good.

NAV in SIP Investments

Many investors starting a Systematic Investment Plan want to understand how NAV affects their investments.

In SIPs, your fixed investment amount purchases units based on the prevailing NAV.

For example:

Month	Investment	NAV	Units Purchased
January	₹5,000	₹20	250
February	₹5,000	₹25	200
March	₹5,000	₹18	277.78

When NAV falls, you purchase more units.
When NAV rises, you purchase fewer units.

This process helps average the purchase cost over time and is known as rupee cost averaging.

Because of this feature, SIP investors generally do not need to worry about finding the “perfect” NAV.

Common Myths About Mutual Fund NAV

As an investor, there are certain myths that you should be careful of. These are:

Returns depend on portfolio performance, not the NAV level.
A higher NAV often reflects long-term growth rather than overvaluation.
A ₹10 NAV does not make an NFO superior to an established fund.
Mutual fund NAV and stock prices operate differently.

How to Choose a Mutual Fund Instead of Looking at NAV

A practical approach is to compare funds based on meaningful parameters.

Evaluation Factor	Importance
Long-term returns	High
Risk-adjusted performance	High
Expense ratio	High
Fund manager quality	High
Portfolio diversification	High
NAV value	Low

This approach helps investors focus on factors that genuinely impact wealth creation.

Conclusion

Knowing the NAV full form in a mutual fund or the NAV full form in SIP is very important. But at the same time, it is important to understand that there is no such thing as a good NAV. Also, the NAV has no direct impact on your returns.

So, as an investor, you need to analyse all the aspects before you invest. Assessing the options with the help of experts and through platforms like Pocketful can help you greatly. So, start investing right today.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Top Gold Mutual Funds in India
2	Best Silver Mutual Funds to invest in India
3	Best Brokers for Mutual Funds
4	Best Gold Investment Schemes in India
5	Best Money Market Mutual Funds in India
6	Best Thematic Mutual Funds in India
7	Top 10 Mutual Fund Distributors in India
8	Best Corporate Bond Funds in India
9	Best Long-Term Mutual Funds to Invest in India
10	Best Mid-Cap Mutual Funds in India

Frequently Asked Questions (FAQs)

What is the best NAV for mutual funds?
There is no best NAV for a mutual fund. A lower or higher NAV does not indicate whether a fund is better. This is why you should consider factors like past performance, manager, and portfolio for insights.
Is a higher or lower NAV better?
Neither is inherently better. NAV impacts the units that are being allotted to you, but returns are based on management, market, portfolio, and other factors.
How to know if NAV is good or bad?
NAV itself is not good or bad. To evaluate a mutual fund, look at historical returns, risk levels, consistency, fund management quality, and portfolio composition rather than the NAV number.
Which NAV will I get for mutual fund?
You receive the applicable NAV based on the time your investment transaction is processed and accepted according to mutual fund cut-off timings and regulatory guidelines.
What is a normal NAV?
There is no normal NAV range. Mutual funds can have NAVs ranging from ₹10 to several hundred rupees. The NAV value alone does not determine the quality or attractiveness of the investment.

June 22, 2026

Best Credit Risk Funds in India 2026

Today, we will look at a very interesting option that could fit into your financial plan. We are talking about the credit risk debt fund. A good credit fund tries to give you a bit more reward by taking a calculated risk.

We will explore everything you need to know about a credit risk fund in this clear guide. You will understand how credit risk mutual funds work to build your wealth. By the end, you will also discover the best credit risk funds available right now. Let us begin.

What are Credit Risk Funds?

Credit risk funds are a special category of debt mutual funds in India. The Securities and Exchange Board of India (SEBI) officially introduced this category in October 2017. These credit fund mostly invest your money in corporate bonds and commercial papers issued by various companies.

According to SEBI rules, these funds must invest at least 65 percent of their money into corporate bonds that have a lower credit rating. Specifically, they have to pick bonds that are rated AA or even lower. Highly rated bonds are very safe, but they pay a lower interest rate to investors.

Lower rated bonds carry a bit more risk, so they offer a higher interest rate to attract money. This higher interest rate is the main reason why these funds can generate better returns. Fund managers actively look for companies that are fundamentally strong but currently have a lower rating.

Best Credit Risk Mutual Funds

Choosing the right fund requires looking at past performance, fund size, and costs. We have gathered data on the best performing direct plan options available in the market today.

The table below shows the key details like Net Asset Value (NAV), Asset Under Management (AUM), and returns over different time periods.

Fund Name	NAV (₹)	AUM (₹ Cr)	1-Year Return (%)	3-Year Return (%)	5-Year Return (%)	Expense Ratio (%)
ICICI Prudential Credit Risk Fund	37.56	5,990	7.66	8.74	7.83	0.73
Aditya Birla Sun Life Credit Risk Fund	27.19	1,353	11.91	12.63	10.60	0.79
Nippon India Credit Risk Fund	41.17	1,343	7.33	8.71	9.07	0.71
HSBC Credit Risk Fund	36.68	475	5.38	11.53	9.26	0.95
Axis Credit Risk Fund	25.61	355	7.29	8.34	7.44	0.8
UTI Credit Risk Fund	20.34	253	5.6	7.52	10.02	1.04
DSP Credit Risk Fund	59.35	242	9.8	16.6	13.0	0.40
Baroda BNP Paribas Credit Risk Fund	25.93	174	6.28	8.27	9.15	0.80
Invesco India Credit Risk Fund	2292.3	159	6.55	9.30	8.20	0.28
BOI AXA Credit Risk Fund	14.16	105	17.05	9.88	27.7	1.15

(Data for the above table has been collected from value research as on 2 june 2026)

Ratings of Credit Risk

To fully understand these funds, we must understand how bonds are rated in India. Rating agencies like CRISIL and ICRA act as report cards for companies that borrow money.

These agencies check the financial health of a company and assign a letter grade. This grade tells investors how safe it is to lend money to that company. Here is a breakdown of the rating scale provided by CRISIL and ICRA:

Rating for Debt Securities	CRISIL	ICRA
Highest Safety	CRISIL AAA	ICRA AAA
High Safety	CRISIL AA	ICRA AA
Adequate Safety	CRISIL A	ICRA A
Moderate Credit Risk	CRISIL BBB	ICRA BBB
Moderate Default Risk	CRISIL BB	ICRA BB
High Default Risk	CRISIL B	ICRA B
Very High Default Risk	CRISIL C	ICRA C
Default	CRISIL D	ICRA D

Credit risk mutual funds mostly focus on the AA and A rated categories. They avoid the extremely safe AAA bonds to get better interest rates. They also hope these AA companies will soon become AAA companies, which increases their profits.

Features of Credit Risk Mutual Funds

These funds come with some unique features that make them different from your regular bank deposits. Here are the main features you should know:

Lower-Rated Bonds: Unlike traditional debt mutual funds that mostly buy highly rated safe bonds, credit risk funds specifically invest in bonds rated ‘AA’ and below.
Diversified Portfolio: To manage the risks and keep your money safe from individual company defaults, fund managers wisely spread their investments across many different issuers.
Steady Interest Payments: Investors can benefit from regular interest payments, which provide a very consistent income stream even when the markets are moving.

Advantages of Investing in Credit Risk Mutual Funds

Adding these funds to your portfolio can provide several powerful benefits.

Higher Interest Income: The biggest advantage is the extra money you can make. Because these funds invest in lower rated bonds, they usually offer 2 to 3 percent more return than risk free government funds.
Profits from Rating Upgrades: This is a hidden benefit that boosts your returns. If a company improves its business, rating agencies will upgrade its bond rating from AA to AAA. When this happens, the bond price goes up, and your mutual fund value increases.
Good for Economic Recovery: When the Indian economy is growing rapidly, companies make more profit. This makes it easier for them to repay loans, reducing the risk in these funds while keeping returns high.
Diversification: If you already have fixed deposits and safe government bonds, this fund adds variety. It helps you build a balanced portfolio that fights inflation effectively.

Disadvantages of Investing in Credit Risk Funds

While the returns are attractive, we must honestly discuss the negative sides as well. You should be aware of these risks before investing.

Default Risk: This is the scariest risk for any debt fund. If a company goes bankrupt and cannot pay its interest or loan amount, the fund loses money. Because these funds pick lower rated bonds, the chance of a default is naturally higher.
Liquidity Risk: Sometimes, investors panic and try to withdraw their money all at once. To give the money back, the fund manager has to sell the bonds in the market. Lower rated bonds are hard to sell quickly, which can force the manager to sell them at a huge loss.
High Volatility: Regular debt funds usually grow in a straight, steady line. Credit risk funds can jump up and down a lot more, almost resembling the stock market on bad days.
Downgrade Risk: Just like an upgrade makes you money, a rating downgrade loses you money. If a company starts doing poorly, its bond rating drops, and the fund value falls immediately.

Who should invest in credit risk funds

Because of the unique mix of high rewards and high risks, this category is not meant for every single person.

If you get worried easily when your investment value drops, you should completely avoid these funds.
These funds are best suited for investors who have a high tolerance for risk. You must be willing to see some temporary negative returns during bad market days.
Time is also a very important factor here. You should only invest if you do not need the money for at least 3 to 5 years.

This long time period helps the fund recover from any sudden market shocks. It also gives the companies enough time to get their bond ratings upgraded.

Factors to Consider Before Investing in a Credit Risk Fund

You should never invest blindly. Always check a few important details before you commit your hard earned money.

Check the AUM Size: Always look at the Asset Under Management. You should prefer funds that have a very large AUM. A bigger fund can invest in hundreds of companies, so if one company defaults, your overall loss is very small.
Fund Manager History: Find out who is running the fund. An experienced manager who has survived previous market crashes is very important here. You are basically trusting their skill to pick good companies.
Look at the Expense Ratio: The expense ratio is the fee the mutual fund company charges you. Always try to choose “Direct Plans” instead of “Regular Plans” because direct plans have much lower fees. Lower fees mean higher final returns for you.
Review the Portfolio: Most apps will show you where the fund has invested its money. Ensure the fund is not putting too much money into just one single risky industry.

How to Invest in Credit Risk Mutual Funds

Here is how you can easily start investing:

Open Your Account: First, download the Pocketful app or visit their website. You can open your account with zero account opening charges and zero annual maintenance charges.
Complete Digital KYC: As per government rules, you need to verify your identity. You can easily upload your PAN card and Aadhaar details on the app to complete your KYC in minutes.
Select Your Fund: Once your account is active, go to the mutual funds section. You will find all the top credit risk funds listed there. You can compare their returns and check their portfolios clearly.
Start a SIP or Lumpsum: You don’t need a massive amount of money to begin. You can start a Systematic Investment Plan (SIP) with as little as ₹500 a month. If you have extra savings, you can also do a one time lump sum investment.
Track Your Growth: Pocketful provides a clean dashboard to track all your investments. You can easily monitor how your credit risk fund is performing every single day.

Conclusion

We hope this guide helped you understand the exciting world of credit risk mutual funds. While traditional fixed deposits offer safety, they often struggle to beat the rising cost of living. Credit risk funds offer a realistic way to earn that extra bit of return.

Yes, they come with certain risks, but with a smart fund manager and a long term view, these risks can be managed well. By choosing funds with large AUMs and starting small SIPs through user friendly platforms like Pocketful, you can confidently take a step towards better financial growth. Happy investing.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Top 10 Fund Managers in India
2	10+ Best Investment Plan for Monthly Income in India
3	Hybrid Mutual Funds – Definition, Types and Taxation
4	What is an Open-Ended Mutual Fund & How to Invest in it?
5	Mutual Fund vs ETF. Are They Same Or Different?
6	Top 10 Mutual Fund Distributors in India
7	Debt Mutual Funds: Meaning, Types and Features
8	How to Check Mutual Fund Status with Folio Number?
9	Best Thematic Mutual Funds in India
10	What is Solution Oriented Mutual Funds?
11	How Interest Rates Impact Mutual Funds in India

Frequently Asked Questions (FAQs)

What is the simple meaning of a credit risk mutual fund?
It is a type of debt mutual fund that invests at least 65 percent of its money into lower rated corporate bonds. It takes a slightly higher risk to generate better interest returns for you.
What are the main benefits of investing in these funds?
The main benefit is the potential to earn 2 to 3 percent higher returns than safe government debt funds. You also get the chance to make extra profit if the bond ratings get upgraded in the future.
What is the biggest risk I should worry about?
The biggest risk is “default risk.” If the company that issued the bond goes bankrupt and cannot pay back the money, the mutual fund will suffer a loss.
How long should I stay invested in these funds?
You should only use these funds if you can keep your money invested for at least 3 to 5 years. This gives the fund enough time to recover from any short term market panics.
How to use and invest in these funds easily?
You can use digital investment platforms like Pocketful to invest. Simply complete your digital KYC, choose a top performing credit risk fund, and start a monthly SIP with as little as ₹500.

June 16, 2026

Best Renewable Energy Mutual Funds in India 2026

India is growing at a rapid pace today. With this economic growth comes a massive demand for power across the country. The nation is slowly moving away from traditional coal and focusing heavily on clean power sources. This major shift is creating new chances for wealth creation in the stock market. The government is also backing change to a cleaner future with supportive policies. It is a very exciting time to watch the financial markets adapt to these positive changes. Let us explore a simple and effective way to participate in this changing landscape.

What are Renewable Energy Mutual Funds

When you decide to invest in the power transition, green energy mutual funds are a great starting point. These funds pool money from many investors to buy shares of companies working in solar, wind, and clean technologies. Traditional energy mutual funds usually focus entirely on old oil, gas, and coal companies. In contrast, renewable energy mutual funds specifically look for businesses that want to reduce pollution and build sustainable power.

Sometimes, finding pure clean energy companies in India is tough because the sector is still quite young. So, fund managers often pick energy sector mutual funds that include older power companies actively shifting towards green projects. For example, a big oil company building a massive solar park could easily be included in the portfolio. You might also hear about a renewable energy etf India in the market. An ETF, or exchange-traded fund, is similar to a mutual fund but it trades on the stock market exactly like a regular share. Both of these options let you support the clean power movement while aiming for financial growth.

Best Renewable Energy Mutual Funds

Here is a list of some top funds in this space for 2026. We have compared them based on their category, Net Asset Value (NAV), Assets Under Management (AUM), past returns, and expense ratio.

Fund Name	Category	NAV	AUM (Crores)	Expense Ratio(%)
SBI Energy Opportunities	Equity Thematic	₹11.60	₹8,918	0.67
ICICI Prudential Energy Opportunities	Equity Thematic	₹11.79	₹8,851	0.55
Nippon India Power & Infra	Equity Sectoral	₹411.96	₹7,707	0.82
DSP Natural Resources & New Energy	Equity Thematic	₹124.92	₹2,342	2.13
Tata Resources & Energy	Equity Thematic	₹58.32	₹1,343	0.60
Kotak Energy Opportunities	Equity Thematic	₹10.82	₹276	0.79

Note: The SBI, ICICI Prudential, and Kotak funds were launched recently, so their 3-year and 5-year return data is not available yet. All the data shown in the above table collected on 3 June 2026.

Overview of Best Renewable Energy Mutual Funds

Let us look at these specific funds in a bit more detail.

1. SBI Energy Opportunities Fund

Launched recently in early 2024, this fund quickly became very popular among investors. It currently manages a massive ₹8,918 Crores. Because it is so new, we do not have long-term return data yet.

However, it charges a competitive expense ratio of 0.79%. It invests heavily in companies like Reliance and ONGC that are building massive new green infrastructure. This is a good option if you trust big, established companies.

Fund Name	1 Year Return	3 Year Return	5 Year Return
SBI Energy Opportunities	7.96%	N/A	N/A

(Data as of 3 June 2026)

2. ICICI Prudential Energy Opportunities Fund

This is another new fund from 2024 that has performed very well in its first year. It gave an impressive one-year return of over 15%. The most attractive feature is its very low expense ratio of 0.54% to 0.65%.

The fund invests across 85 different stocks, offering very good variety. It even includes equipment makers that supply parts for clean energy projects. This wide variety helps lower the risk a little bit.

Fund Name	1 Year Return	3 Year Return	5 Year Return
ICICI Pru Energy Opportunities	15.67%	N/A	N/A

(Data as of 3 June 2026)

3. Nippon India Power & Infra Fund

This fund is a popular choice for investors looking at the power and infrastructure sectors. It manages a very large pool of money, around ₹7,707 Crores. The fund has delivered a strong 26.20% return over the past three years.

It invests in big companies like Reliance Industries and NTPC, along with specific green firms like NTPC Green Energy Ltd. The expense ratio is decent, making it a fair choice for long-term holders. This mix of old and new energy helps balance the fund.

Fund Name	1 Year Return	3 Year Return	5 Year Return
Nippon India Power & Infra	8.54%	26.20%	24.40%

(Data as of 3 June 2026)

4. DSP Natural Resources and New Energy Fund

This fund offers a unique twist by investing a part of its money in international clean energy funds. It has given a very solid 25.60% return over the past three years. The direct plan has an expense ratio of 0.72%, which is quite reasonable.

The portfolio heavily leans on large Indian companies but adds a global flavor to balance the risks. This global exposure is a nice feature for investors wanting a broader reach.

Fund Name	1 Year Return	3 Year Return	5 Year Return
DSP Natural Res & New Energy	28.79%	25.60%	18.30%

(Data as of 3 June 2026)

5. Tata Resources & Energy Fund

The Tata Resources & Energy Fund focuses on natural resources and the broader energy market. It balances its investments carefully between older commodity businesses and new renewable ventures. With an AUM of ₹1,343 Crores, it is smaller but very efficient.

The fund charges a low expense ratio of around 0.60% to 0.70% for its direct plan. This low fee helps you keep more of your returns over the years. It has given a solid 13.60% return in the last one year.

Fund Name	1 Year Return	3 Year Return	5 Year Return
Tata Resources & Energy	13.95%	20.52%	15.50%

(Data as of 3 June 2026)

6. Kotak Energy Opportunities Fund

This fund is smaller and newer, with an AUM of around ₹276 Crores. It looks for hidden chances in both traditional and sustainable power companies. The expense ratio is around 0.90% for the direct plan.

Interestingly, it holds shares in pure solar companies like Waaree Energies and Vikram Solar. This makes it a nice option if you want to directly support solar growth in India.

Fund Name	1 Year Return	3 Year Return	5 Year Return
Kotak Energy Opportunities	6.63%	N/A	N/A

(Data as of 3 June 2026)

Who should invest in Renewable Energy Mutual funds

Here is a quick look at who these funds are best suited for:

High-Risk Takers: These funds are officially marked as “Very High Risk” by market regulators. You must have a strong stomach for sudden market ups and downs.
Long-Term Investors: The shift to green power takes time. You need a long investment horizon of five to ten years to see meaningful growth.
ESG Focused Investors: Mutual funds focused on renewable energy might be suitable for investors aiming for sustained capital appreciation alongside a commitment to environmental, social, and governance (ESG) values.

Factors to Consider Before Investing in a Renewable Energy Mutual Funds

Keep these below mentioned point in mind before investing in energy mutual funds

Analysis of expense ratio: Always check the yearly fee the fund charges. Direct plans have lower fees than regular plans. A lower fee means you take home more profits in the long run.
Size of the fund : Some funds have a long track record, while others are very new. A larger AUM often means more people trust the fund, but a good track record proves the fund manager’s skill.
Understand the Holdings: See what stocks the fund actually buys. Some funds buy pure green companies, while others buy older oil and coal companies that are slowly turning green. Make sure this matches your goals.
Review the Exit Load: Mutual Funds charge a small fee if you pull your money out too early, like within 30 or 90 days. Be sure you know this rule so you do not lose money unnecessarily.

Advantages of Investing in Renewable Energy Mutual Funds

Here is what makes this sector worth your attention:

Massive energy demand: India is growing fast, and our need for power is only going up. Since electricity is a non-negotiable part of daily life.
Solid potential for wealth creation: We are looking at a permanent shift in how power is generated. Backing this transition gives investors a strong chance to build real wealth over the next decade.
Heavy government backing: The push for green energy has serious momentum from the government. With subsidies and tax breaks flowing into the sector, renewable companies have a clear runway for faster growth and lower risks.
Investing with a purpose: Beyond just making money, you are putting your capital to work for a cleaner environment.

Disadvantages of Investing in Renewable Energy Mutual Funds

There are a few important risks to keep in mind before investing. Here is what you need to watch out for:

Policy Dependence: These funds rely heavily on friendly government rules. A sudden stop in subsidies can easily hurt company profits.
High Material Costs: Green energy projects need raw materials like copper and aluminum. If these material prices shoot up, building costs will increase.
Lack of Diversification: As sectoral funds, they focus on just one area. If the energy sector struggles, your investment will directly drop in value.
High Volatility: Without other sectors like banking or IT to balance the risk, these funds can face sharp ups and downs over short periods.

How to Invest in Renewable Energy Mutual Funds

Starting your investment journey in these funds is quite simple today. Here are the simple steps and options available to you:

Open a Demat Account: You can easily invest using Pocketful. Open a trading account on this platform and It offers a smooth platform where you can track funds, compare fees, and execute orders with zero brokerage charges.
Selection of fund: Find the renewable energy mutual fund select the fund of your choice.
Lump Sum Investment or SIP: You can choose to invest a large amount of money all at once if you have spare cash available or a fixed amount every month. You can start with just ₹100 or ₹500.
Track & Review your Investment: After doing the investment Track your Funds Performance, Evaluate Returns & Policy Changes.

Taxation on Renewable Energy Mutual Funds

When you make a profit on your mutual funds, the government charges a tax. Since these funds invest mostly in the stock market, they follow the equity taxation rules. The rules for 2026 are quite straightforward and easy to understand.

If you sell your units within 12 months, it is called a Short-Term Capital Gain. You will have to pay a flat 20% tax on this quick profit. If you hold your investment for more than 12 months, it becomes a Long-Term Capital Gain and will be taxed at 12.5%.

Conclusion

Renewable energy is not just about the investment rather it is the future of energy. To gain advantage in this market the Indian government supported the companies providing subsidies and investors in simple taxation on investment of mutual funds.

Apps like pocketful help you to invest in these mutual funds with zero brokerage and zero account opening fees. It also has ready made pockets like renewable energy where a beginner can invest without having advanced knowledge.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Mutual Fund vs ETF. Are They Same Or Different?
2	ETF vs Index Fund: Key Differences You Must Know
3	ETF vs Stock – Which One is the Better Investment Option?
4	Gold ETF vs Gold Mutual Fund: Differences and Similarities
5	FD (Fixed Deposit) vs Stocks: Which is the better investment option?
6	Regular vs Direct Mutual Funds: Make The Right Investment Decision
7	Daily SIP vs Monthly SIP: Which SIP is Better?
8	SIP vs Lump Sum: Which is Better?
9	Mutual Funds vs Direct Investing: Differences, Pros, Cons, and Suitability
10	SIP in Stocks vs SIP in Mutual funds?

Frequently Asked Questions (FAQs)

Which is the best renewable energy mutual fund in India?
None of the mutual funds emerges as the best mutual fund for renewable energy investments. The mutual funds that could be considered on the basis of their investment goals and risk appetite could include – SBI Energy Opportunities Fund, ICICI Prudential Energy Opportunities Fund, and DSP Natural Resources & New Energy Fund.
Which mutual funds invest in solar energy stocks in India?
Several energy-focused mutual funds invest in solar energy companies alongside power, utilities, and other businesses benefiting from India’s clean-energy transition.
What is the minimum SIP amount for renewable energy funds?
Most renewable energy mutual funds allow SIP investments starting from ₹100 or ₹500, making them easy for a wide range of investors.
What is the difference between energy funds and renewable energy funds?
Energy funds invest in oil, gas, power and utilities. Renewable energy funds invest mainly in solar, wind and clean-energy companies.
Can I invest in renewable energy mutual funds through SIP?
Yes, you an invest in Renewable energy fund through SIP, it’s a best way to invest for Long term Horizon.

June 12, 2026

How to Invest in Direct Mutual Funds in India

You must have noticed people making different profits from the exact same mutual fund. But how is it possible? The answer is simple, they choose direct plans. Direct mutual funds are simply mutual fund schemes that you buy straight from the fund house. There is no middleman involved in this process. This means you do not pay any hidden commission fees to anyone. Because of this missing fee, your money grows faster over time. This is exactly why more and more smart investors are picking direct plans today. They want full control of their money and better returns for their future.

Understanding Direct Mutual Funds

When you decide to invest in direct mutual funds online, you take a big step towards better savings. Direct mutual funds are plans that you buy directly from the Asset Management Company. There is no broker or agent standing between you and the fund.

Because there is no agent, you do not have to pay any distribution fees. This is exactly how direct plans work to save you money. The role of Asset Management Companies here is to create the fund, manage your money, and let you buy units directly from their website or apps.

Now, let us talk about the expense ratio, it is simply the small fee the fund house charges to manage your money. In a direct plan, this fee is much lower because the fund house does not have to pay a cut to any agent.

Direct vs Regular Mutual Funds

In a regular plan, you invest through a broker or a bank. In a direct plan, you invest by yourself. The commission structure is the biggest difference here. Regular plans pay a trail commission to your broker every year from your investment amount. Direct plans have zero commission, meaning all your money goes strictly into the market.

When we do a return comparison over long-term investing, direct plans usually win. A small saving of one percent every year adds up to a huge amount over ten or twenty years.

Feature	Direct Mutual Funds	Regular Mutual Funds
Buying Method	Directly from the AMC or platforms	Through a broker or an agent
Commission Fee	Zero commission	High trail commission paid to the agent
Expense Ratio	Lower	Higher
Long-Term Returns	Higher due to compounded savings	Lower due to agent fees
Best Suited For	Do-It-Yourself investors	Beginners who need an advisor

Different Ways to Invest in Mutual Funds

There are multiple ways by which you can invest in mutual funds, here are some of the most common ways to invest in mutual funds:

1. Through AMC Websites

In this you can directly visit the official website of the Asset Management Company (the “fund house”) whose scheme you’ve chosen. It’s a great option if you have already decided on a specific fund and prefer dealing directly with the company managing your money. You’ll create an account on their portal, complete your KYC, and start your investment.

2. Via Mutual Fund Apps

If you prefer managing your money on the go, dedicated mutual fund apps are incredibly convenient. Most of these apps are designed to be user-friendly, allowing you to track your portfolio, start a SIP, or make a one-time lump sum payment with just a few taps. Just make sure you select the “Direct Plan” option within the app to avoid any distributor commissions.

3. Using Registrar Platforms

Registrars and Transfer Agents (RTAs) like CAMS or KFintech, and their joint platform MFCentral, are the “back office” of the mutual fund world. They act as a centralized hub where you can view and manage all your investments across different fund houses in one place. It’s an excellent way to handle your portfolio if you hold funds from multiple AMCs.

4. Through a Demat Account

If you are already active in the stock market, you might find it easiest to buy mutual funds through your existing Demat account. It lets you hold your mutual fund units in an electronic, “dematerialized” format alongside your shares. This is perfect if you want to keep all your financial assets in a single, consolidated view, though it’s worth noting that some prefer keeping them separate to avoid certain account maintenance charges.

5. Using Online Investment Platforms

You can find many SEBI registered fintech platforms that work as aggregators. Also platforms like these offer a simple user interface and give a good user experience making it easier for the investors to track their financial goals, analyse their performance and compare different investing schemes. Although these apps make it very easy for new investors to invest, one should always check if Direct plans are allowed and you are getting lower expense ratios or not.

Step-by-Step Guide to Invest in Mutual Funds

Learning how to invest in direct mutual funds is much easier than you might think. The entire process is completely digital today. If you want to know how to buy direct mutual funds online in India, just follow these simple steps.

Step 1: Before you start, you must complete your Know Your Customer process.This is a one-time rule where you verify your identity with your basic documents.
Step 2: Decide Your Investment Goal as knowing your goal helps you plan better.
Step 3: Choose the Right Mutual Fund Category, equity funds are for the long term, while debt funds are for short-term safety.
Step 4: Take your time to compare fund performance against others in the same group, don’t pick the first fund you see.
Step 5: Decide if you want to put in money every month using a Systematic Investment Plan or make a one-time lump sum investment.
Step 6: Invest Through AMC Website or Trusted Platforms, you can either go to the fund house website directly or you can use trusted online platforms and apps to start your investment safely.
Step 7: Track and Review Your Portfolio at least once a year to ensure it is growing nicely.

Documents Required for Investing

To make your investment account active, you need a few basic documents. Keep these ready before you start the online process:

PAN Card: Your Permanent Account Number is compulsory for all mutual fund investments in India.
Aadhaar Card: This helps in quick online verification and links your details very smoothly.
Bank Account Details: You need to link an active bank account. You will use this account to send money and receive your profits.
Mobile Number and Email ID: These are important for receiving your account statements and secret login codes.
KYC Verification Documents: You will need basic address proof and a clear photograph to complete the KYC steps online.

Taxation on Direct Mutual Funds

Profits that you earn are attached with tax that needs to be submitted to the government. The tax rules have changed recently in the budget of 2024 – 2025. Let’s look at the new tax norms:

Tax on Equity Mutual Funds: If equities are sold after you are taxed as per long-term gain and the tax rate is 12.5%, but your first Rs.1.25 lakh of profit in a year is completely tax-free. If you sell before one year, you pay a short-term tax of 20%.
Tax on Debt Mutual Funds: Any profit you make from a debt fund bought after April 2023 is simply added to your normal income. It is taxed according to your normal income tax slab rate.
Capital Gains Tax Explained: Here the government only taxes the profit part (capital gained) and not your original investment amount.
Tax Saving Through ELSS Funds: If you want to save tax, you can buy Equity Linked Savings Schemes. These funds have a strict three-year lock-in period. After three years, your profits are taxed at 12.5 percent, with the same Rs.1.25 lakh yearly exemption.

Fund Type	Short-Term Holding Period	Short-Term Tax Rate	Long-Term Holding Period	Long-Term Tax Rate
Equity Funds	Up to 12 months	20%	More than 12 months	12.5% (Above Rs.1.25 lakh)
Debt Funds	Any period	Slab Rate	Not Applicable	Slab Rate
ELSS Funds	Locked for 3 years	Not Applicable	More than 3 years	12.5% (Above Rs.1.25 lakh)

Common Mistakes to Avoid

Before starting your investment journey you should know about the mistakes that needs to be avoided:

Chasing High Returns: Don’t just invest in a fund because it is giving high returns in the past year. Do proper research and then invest.
Ignoring Risk Appetite: Pick funds that match your risk appetite and you should not put all your money in high-risk funds.
Investing Without Goals: Always have clear goals before investing, as this helps you in making better decisions.
Not Reviewing Portfolio Regularly: Over the years, your fund might stop performing well, so you must review your portfolio regularly.
Panic Selling During Market Corrections: Markets will always go up and down. Panic selling during market corrections is the worst mistake, as it turns your paper losses into real losses.

Read Also: 10 Best Brokers for Mutual Funds

Benefits of Investing in Direct Mutual Funds

There are many great reasons to choose this path for your savings. Here are the top benefits you will enjoy:

Lower Expense Ratio: There are no middleman fees giving you a lower expense ratio right from day one.
Higher Long-Term Returns: Your saved fees get compounded, giving you higher long-term returns.
Greater Transparency: You clearly know where the money is being invested, with no extra charges or commissions that you have to pay.
Suitable for DIY Investors: It is highly suitable for Do-It-Yourself investors, who want to be in charge of their own money.
Easy Online Access: You have easy online access to buy, sell, and track your funds with just a few clicks.

Limitations and Risks of Direct Mutual Funds

While a direct plan has benefits, it also has some challenges. Here are the main risks involved:

No Personal Financial Advisor: You have to act on your own as there is no one to guide you for your investments.
Requires Research and Self-Decision Making: It requires research and self-decision making to pick the best funds for your personal goals.
Risk of Choosing the Wrong Fund: Since you have no expert help, there is a real risk of choosing the wrong fund. Picking a very risky fund for a short-term goal can lead to unexpected losses.
Market Risks Still Apply: Direct plans do not protect you from a bad market. If the stock market drops, the value of your direct mutual fund will also drop just like any regular fund.

Conclusion

Taking control of your own money might not be a good decision at first, but it is a very rewarding habit. Direct mutual funds give you transparency with taking less fees which helps in your wealth steadily. Always remember to do a little research, pick the right funds, and stay patient for the best results.

Even a 0.5%–1% lower expense ratio can create a significant difference in wealth over 10–20 years. Investors who are comfortable researching funds can benefit from choosing direct mutual funds and keeping more of their returns.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Top Gold Mutual Funds in India
2	Best Silver Mutual Funds to invest in India
3	How to Build a Mutual Fund Portfolio
4	Best Gold Investment Schemes in India
5	Best Money Market Mutual Funds in India
6	Best Thematic Mutual Funds in India
7	Top 10 Mutual Fund Distributors in India
8	Best Corporate Bond Funds in India
9	Best Long-Term Mutual Funds to Invest in India
10	Best Mid-Cap Mutual Funds in India

Frequently Asked Questions (FAQs)

What is the difference between direct and regular mutual funds?
Direct mutual funds are acquired straight from the fund house, leading to reduced expense ratios. Another hand, regular mutual funds are accessed through an intermediary like a distributor or advisor, and thus incorporate commission fees.
Which is better: direct mutual funds or regular mutual funds?
Direct investment funds might give higher profits because of their reduced expense ratio, while regular mutual funds can offer expert advice and financial backing.
How can I invest in direct mutual funds online?
You have the option to invest in direct mutual funds via the fund houses’s website, their mobile application, or an investment platform that provides direct plans.
Can I switch from a regular mutual fund to a direct mutual fund?
You can begin just Rs.500 by putting your money in a Systematic Investment Plan.
How much extra return can direct mutual funds generate?
Direct mutual funds may offer the possibility of earning 0.5% to 1.5% more per year compared to regular plans, because of reduced expense ratios.
Which App Is Best for Direct Mutual Fund Investment?
Popular options for investing in direct mutual funds include Pocketful, Groww, Zerodha Coin, ET Money, MFCentral, and AMC websites. The best platform depends on what matters most to you, whether it’s ease of use, portfolio tracking, research tools, or a smooth investing experience.

June 9, 2026

Practical Tips for Investing in Mutual Funds for Beginners in India

You might want to invest your savings and make money out of it but all the financial talks sometimes confuse you. But you are not the only one, many people in India are now moving away from traditional savings like gold or fixed deposits and choosing market options instead.

Mutual funds are a great way for us to grow our wealth. In this blog, we will share Practical Tips for Investing in Mutual Funds to help you start your journey.

What are Mutual Funds?

A mutual fund can be compared to a big pot of money where multiple people who are willing to invest pool their savings. This money is used by a professional fund manager to invest in stocks and bonds on your behalf.

Mutual funds are popular and common because you don’t need to be an expert in them to invest in the market. Generally, investing in mutual funds can be started with a very small amount and an expert takes care of growing your investments. By mid-2025, the total money in Indian mutual funds reached over Rs.74 lakh crore. This shows that millions of Indians now trust this way of saving.

Why Invest in Mutual Funds?

If you are considering mutual funds over other investment options, here are some key benefits.

Benefits of Mutual Funds

Professional Management: Experts manage your invested money and you don’t have to spend hours researching where to invest.
Diversification: In mutual funds your money is not invested in just one company rather your money is spread across different companies available in the fund. Even if one company does poorly, the others can keep your investment safe.
Affordability: You don’t have to invest lakhs of rupees to start your investment journey, you can begin with a systematic investment plan (SIP) with just an investment as small as Rs.500.
Liquidity: Units can be easily sold and the money is credited to your account within a few days.

Who Should Invest?

Beginners: Mutual funds are best suitable for beginners as they are one of the most accessible and professionally managed investment options in the market
Salaried Individuals: SIPs are best suited for salaried people as you can easily allocate the amount for SIP from your salary.
Long-term Investors: Mutual funds are an excellent choice for building wealth if you are planning to go for a long term investment of 5 years or more.

Set Clear Financial Goals Before Investing

Before starting you should always be clear about your end goal as this helps you to make a calculated decision.

1. Short-Term vs Long-Term Goals

Short-term goals are things you want in less than 3 years. This could be a family holiday or buying a new scooter. For these, you want your money to stay safe.

Long-term means investment of about 5 to 10 years. This could be your child’s future or your own retirement. For such goals, you can take more risk to get better returns.

2. Goal-Based Investing Approach

Your goals can be different and every goal shall be put in a different bucket. One can be your child’s college expenses or marriage and the other can be your retirement. Investing based on goals can help you to stay calm and relaxed. Even if there are fluctuations in the market you don’t have to worry as you require the money after 10 to 15 years.

Understand Your Risk Appetite

Every investor is different, some can handle seeing their balance go up and down, while others get very worried. This is called your “risk appetite”.

Types of Risk Profiles

Conservative: You want to keep your money very safe and prefer steady, small returns over big risks.
Moderate: You are okay with some ups and downs to get better returns than a bank account.
Aggressive: You are focused on high growth. You are comfortable if the market falls for a while because you are looking at the long term.

Equity funds invest in the stock market and have high risk. Debt funds invest in government bonds and are much safer. Hybrid funds are a mix of both and are great for people who want a middle path. You should look for what suits you the best.

Choose the Right Type of Mutual Fund

There are many types of funds in India. Choosing the right one makes your journey easier.

Equity Funds: In this, shares of companies are bought and this is generally for long-term growth. You can opt for Large-cap funds if you want to invest in big, stable companies and for smaller, high-growth companies you can invest in Mid-cap or Small-cap funds.
Debt Funds: These funds have stability and are best for short term investments. These are like giving a loan to the government or big companies.
Hybrid Funds: This is one of the most popular funds for beginners as here your money is automatically divided and invested in stocks & bonds.
Index Funds: These funds mimic the top 50 companies in India (the Nifty 50). These are simple and cheap options to invest, even the expense ratio is very low saving you the added cost.

Invest Through SIP Instead of Lump Sum

Many people ask if they should put all their money in at once or invest monthly. For most of us, a monthly SIP is the winner.

What is SIP?

An SIP is when you invest a fixed amount every month on a set date. It is like a monthly habit for your future.

Benefits of SIP

The main benefit is “rupee cost averaging.” When the market is low, your Rs.500 buys more units. When it is high, it buys fewer units. Over time, your average cost becomes lower without you having to guess the market price. It also teaches you discipline.

Factors to Consider Before Choosing the Right Fund

Evaluate Fund Performance Properly: Do not just look at which fund gave the highest returns last year. That can be a trap.
Don’t Rely Only on Past Returns: A fund that was a “superstar” last year might not do well this year. Markets change in cycles. Instead, look for a fund that has performed well consistently over 3 to 5 years.
Compare with Benchmark: Every fund has a “benchmark” or a target. If your fund is supposed to follow the top 100 companies, check if it is doing better than the actual Index of those 100 companies. If it is not, the manager might not be doing a good job.

Read Also: How to Invest in Mutual Funds?

Keep an Eye on Expense Ratio and Charges

Companies charge a fee to manage your money. This is expressed in terms of the Expense Ratio.

What is Expense Ratio?

The Expense Ratio is the annual fee you pay to the mutual fund company. Even a small difference in this fee can change your final wealth by lakhs of rupees over 20 years. When you search for a fund, you will see two options, Direct and Regular.

Always try to choose the “Direct” plan. Regular plans include a commission for an agent, which makes them more expensive. Direct plans have a lower Expense Ratio and give you higher returns over time.

Exit Load Explained

An “Exit Load” is a fee you pay if you take your money out too soon. Most funds charge 1% if you sell within a year. This is to encourage us to stay invested for a longer time.

Avoid Common Mistakes

Many Indians lose money because of simple errors. Let’s look at how to avoid them.

Timing the Market: Do not wait for the “perfect” time to buy. Even experts fail at this. Doing nothing and just letting your SIP run is the best choice.
Investing Without Research: Do not invest just because your neighbor or a WhatsApp group told you to. Every person has different needs and goals.
Too Many Funds: You do not need 20 different funds. This just makes your life complicated. A simple set of 4 or 5 good funds is usually enough.
Ignoring Review: While you should not check your balance every hour, you should review it once or twice a year to see if you are still on track for your goals.

Conclusion

Mutual fund investment is directly linked to patience. Here you do not get rich overnight, rather you will build wealth in the long term. Starting right now, opting for direct plans and investing in a disciplined manner will help you reach your goal.

For more market news and insights, download Pocketful where you get a lifetime free account with zero brokerage on delivery trades.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Top Gold Mutual Funds in India
2	Best Silver Mutual Funds to invest in India
3	Best Brokers for Mutual Funds
4	Best Gold Investment Schemes in India
5	Best Money Market Mutual Funds in India
6	Best Thematic Mutual Funds in India
7	Top 10 Mutual Fund Distributors in India
8	Best Corporate Bond Funds in India
9	Best Long-Term Mutual Funds to Invest in India
10	Best Mid-Cap Mutual Funds in India

Frequently Asked Questions (FAQs)

Can I lose all my money in a mutual fund?
Generally, the answer is no. Because your money is spread across multiple companies, it is very unlikely that you will lose everything.
Is a SIP better than a one-time investment?
For most people, a SIP is better because it reduces the risk of investing all your money when the market is at a high price.
What happens if I stop my SIP for a few months?
SIPs can be paused or stopped for a while without any penalty or fees. However it is best to invest regularly as you get the benefit of compounding.
How much tax do I have to pay on my profits?
In equity funds, a 12.5% tax is paid on long-term gains of above Rs.1.25 lakhs in a year. For short-term gains, you are taxed at a flat 20%.
Do I need a Demat account for mutual funds?
For investing in mutual funds, a Demat account is not compulsory, investment can be done directly through the fund company or by using some investment apps.

June 7, 2026

Top Reasons Why Mutual Funds Are Going Down in 2026

Mutual funds are one of the most talked-about investments in India right now, yet a large number of investors end up booking a mutual fund loss within the first year itself. If your portfolio is bleeding and you keep asking why mutual funds are going down despite investing regularly, the honest answer is the market isn’t always the villain here. Most losses trace back to investor behaviour, wrong fund choices, and poor timing. Let’s get into what actually goes wrong.

Can You Actually Lose Money in Mutual Funds?

Yes, you can. Mutual funds are not bank deposits. There’s no guaranteed return. Equity funds especially move with the stock market, so when markets fall, your NAV falls too.

But here’s the part most people miss: a falling NAV isn’t a loss until you redeem. Many investors panic when they see red numbers and pull out. That’s when a temporary dip becomes a real loss. Many investors panic during market downturns after seeing negative returns in their portfolio and exit too early. This emotional decision can turn a short-term dip into a permanent loss. On the other hand, disciplined investors who stay invested for the long term often benefit when markets recover.

Why Mutual Funds Are Going Down, And Why That’s Normal

Markets don’t move in a straight line. Short-term falls happen because of:

RBI interest rate changes
FII (Foreign Institutional Investor) outflows
Global slowdowns or recession fears
Rupee weakness
Domestic political or policy uncertainty

These triggers affect almost every fund category. So if you’re asking why all mutual funds are going down today, chances are it’s a broader market event, not a fund-specific problem.

The important thing to know is this: none of these is permanent. Indian markets have recovered from every crash, whether it was the 2008 financial crisis, the COVID-19 selloff in 2020, or the 2022 rate hike cycle.

Real Reasons Why People End Up With Mutual Fund Loss

1. Buying High, Selling Low

This sounds obvious, but it’s the number one mistake Indian investors make. People enter funds after reading about 40–50% returns in news articles, which usually means the rally is already over.

Then, when markets correct, fear kicks in. They sell. They lock in the loss. And they swear off mutual funds forever.

A DALBAR study tracking US investor behaviour over 20 years found that the average equity fund investor earned significantly less than the market index – primarily due to poor timing of entry and exit decisions.

2. No Investment Horizon in Mind

Ask yourself, when did you plan to use this money? If the answer is “not sure,” that’s a problem.

Equity mutual funds need at least 5 years to smooth out market volatility. Investors who put in money with a 1–2 year mindset and see flat or negative returns in year one often exit at exactly the wrong time.

Time Horizon	Suitable Fund Type
Under 1 year	Liquid or Overnight Funds
1 to 3 years	Short Duration Debt or Hybrid Funds
3 to 5 years	Balanced Advantage or Flexi Cap Funds
5 years and above	Equity, Mid Cap, or Small Cap Funds

Matching your fund to your timeline isn’t optional; it’s the foundation of avoiding mutual fund loss.

3. Wrong Fund for Your Risk Appetite

A retired person investing in a small-cap fund. A 25-year-old putting everything in a liquid fund. Both are making the same mistake, ignoring risk fit.

Small-cap funds can fall 40–50% in a bad year. If you can’t stomach that, you shouldn’t be in one. On the other side, if you have a 10-year horizon and stay in ultra-safe debt funds, you’re leaving serious returns on the table.

Before picking any scheme, be honest about two things:

How long can you stay invested without touching the money?
How much loss can you handle emotionally before you want out?

4. Stopping SIPs When Markets Fall

This is one of the costliest mistakes. A SIP (Systematic Investment Plan) works on rupee cost averaging; you buy more units when prices are low and fewer when prices are high. A falling market is actually when a SIP works best.

Investors who stopped their SIPs during the March 2020 COVID crash missed the recovery entirely. The Nifty 50 bounced back nearly double within 12 – 18 months from the bottom. Those who stayed invested saw some of the best SIP returns of the decade.

Pausing a SIP because mutual funds are down is like stopping a grocery run because vegetables are on sale.

5. Holding Too Many Funds

More funds don’t mean more diversification. Holding 12 large-cap funds from different AMCs still gives you mostly the same 50–100 stocks. The overlap is massive, and you’re just paying more in expense ratios with no added benefit.

A practical portfolio for most investors looks like this:

1 large-cap index fund (Nifty 50 or Nifty 100)
1 mid-cap or flexi-cap fund
1 debt or hybrid fund for stability

Clean, low-cost, and diversified across market segments without unnecessary overlap.

6. Ignoring Costs

Mutual fund expense ratios in India range from 0.1% (index funds) to over 2% (actively managed regular plans). That gap compounds heavily over 10–15 years.

On a ₹10 lakh investment growing at 12% annually:

At a 0.5% expense ratio – approx. ₹51.2 lakh after 15 years
At a 2% expense ratio – approx. ₹41.8 lakh after 15 years

That’s nearly ₹9.4 lakh lost purely to charges. Direct plans carry lower expense ratios than regular plans. If you’re investing through a distributor’s app, check whether you’re in a direct or regular plan.

Also, redeeming before 1 year triggers an exit load of 1% in most equity schemes. LTCG tax of 12.5% applies on gains above ₹1.25 lakh per year. These aren’t huge on their own, but they hurt when you’re already exiting at a bad time.

7. Chasing Last Year’s Returns

Fund ranking lists are published every year. The best performers always attract massive inflows. But top performers rarely repeat, sectors rotate, and market leadership changes.

Picking a fund because it gave 60% last year without asking why it gave 60% is one of the fastest ways to land with a mutual fund loss. That return may have come from a specific sector boom that has already played out.

8. Not Researching the Fund

The S&P SPIVA India Report has some pretty sobering numbers: 73% of those big-name, actively managed funds for the large caps just can’t seem to outdo their benchmarks over the course of a decade. Honestly, it’s like flipping a coin – if you pick a fund at random, you’ve got nearly a 2 in 3 shot of picking one that underperforms an ordinary index fund

Before you hand over your hard-earned cash to some fund manager, you probably should check a few things first

What’s the fund’s track record against its benchmark over the past 5 and 10 years? Any bragging rights or just a bunch of hype
Has the fund manager shown up to work in the past year or two…or has someone new taken the reins?
What’s the makeup of the top 10 holdings, and is the fund just socked away to a single sector?
And how much churning has the fund endured over the past 10 years – any wild swings in the standard deviation department?

That’s it – a quick 15 minutes on a platform like Value Research or Morningstar can save you a whole lot more than that down the line.

Why Are Mutual Funds Downright Now? Market Triggers Explained

Market Event	Which Funds Are Affected
RBI rate hike	Debt funds see NAV drop; long-duration funds hit hardest
FII selling	Mid and small-cap funds fall more sharply than large caps
Global recession fears	All equity funds impacted; international funds especially
Rupee falls vs dollar	Domestic equity funds mildly affected; US funds gain
High inflation data	Rate hike expectations push bond prices down

When you see mutual funds down across the board, it usually points to one of these triggers. These are macro events, and they pass.

How to Invest in Mutual Funds Through Pocketful

If you want to start investing in mutual funds the right way, Pocketful makes the entire process simple and structured. Here’s how you can get started:

Step 1: Create Your Account

The first step is to download the Pocketful app and sign up. The registration process is quick and takes only a few minutes.

Enter your mobile number and verify with OTP
Set your login credentials
Access your personal dashboard

Step 2: Complete Your KYC

KYC is mandatory before you can invest in any mutual fund in India. On Pocketful, the entire KYC process is online and paperless.

Add your PAN and Aadhaar details
Enter your bank account information
Complete the verification process

Step 3: Select a Mutual Fund

Once your account is ready, you can browse mutual funds based on your goal, risk appetite, and investment horizon. Pocketful lists funds across all major categories.

Choose from equity, debt, hybrid, or index funds
Filter by AMC, fund rating, or past performance
Compare expense ratios before finalising

Step 4: Start Your SIP or Lump Sum Investment

Decide how you want to invest – through a monthly SIP or a one-time lump sum. SIPs can be started with as little as ₹100 per month.

Set your SIP amount and date
Choose the fund and confirm your investment
Track your SIP performance directly from the dashboard

Pocketful gives you access to direct mutual fund plans with zero commission, so your expense ratio stays low and more of your money stays invested.

Conclusion

The market dips, NAVs fall, and mutual fund down headlines start appearing; that’s always been part of investing in equities. But the investors who end up with a real, permanent mutual fund loss are usually those who reacted to the noise instead of sticking to a plan. Whether it’s wrong timing, mismatched funds, or ignoring costs, every mistake on this list is avoidable. Know why mutual funds are going down before you act on it. More often than not, the right move is to stay put.

Ready to start investing the smarter way? Invest in mutual funds with Pocketful, zero commission on mutual fund investing, so every rupee you put in works harder for you.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	What is Trail Commission in Mutual Funds?
2	Best Silver Mutual Funds to invest in India
3	Best Brokers for Mutual Funds
4	Best Gold Investment Schemes in India
5	Best Money Market Mutual Funds in India
6	Best Thematic Mutual Funds in India
7	What is Annualised Returns in Mutual Funds?
8	Best Corporate Bond Funds in India
9	Best Long-Term Mutual Funds to Invest in India
10	Best Mid-Cap Mutual Funds in India

Frequently Asked Questions (FAQs)

Why are mutual funds going down recently?
Mutual funds usually take a hit when stock markets start to plummet. Its been pretty obvious that things like the cost of living going up, the state of the world getting more uncertain, the central banks raising interest rates, and foreign investors cashing out can all have an impact on how well your fund is performing.
Why are all mutual funds going down today?
If the overall market declines sharply, many equity mutual funds may fall together. This happens because most funds are connected to market performance directly or indirectly.
Is mutual fund loss permanent?
Not always. Many losses are temporary and depend on market conditions. A loss becomes permanent only when investors sell their units at a lower price.
Should I stop my SIP when mutual funds are down?
Stopping SIPs during market corrections may not be a good decision for long-term investors. Continuing SIPs can help average the purchase cost over time.
How can I reduce mutual fund loss?
You can help reduce the risk byNot panicking and just looking to long term gainsSpreading your portfolio out so its not all in one placeChoosing the right funds for your level of riskNot making any rash decisions during the really volatile times
Are Mutual Funds Safe for Beginners?
Mutual Funds can be a pretty good starting point for beginners if they pick funds that are based on their own financial goals and risk tolerance. A lot of new investors start off with large-cap or hybrid funds because they tend not to be too unpredictable

June 6, 2026

Oldest Mutual Funds in Indial Funds in India

If you’ve ever wondered which of the oldest mutual funds in India have truly stood the test of time, you’re not alone. Thousands of investors search for funds with proven track records and for good reason. A fund that has survived multiple market crashes, regulatory overhauls, and economic downturns tells you something no NAV chart alone can.

Let’s walk you through India’s most enduring mutual fund schemes, what makes them relevant even today, and how you can invest in them through Pocketful.

Which Is the Oldest Mutual Fund in India?

The oldest mutual fund that’s still going strong in India is UTI Mastershare Unit Scheme – and it’s been around since 15 October 1986.

Originally a closed fund, its format was changed to open-ended in 2003. It’s pretty much a large-cap equity fund – and with a 38-year performance record under its belt – it has one of the longest records to date of multiple market cycles in the country.

Fun fact: UTI Mastershare was launched before the BSE Sensex had even crossed the 700 mark.

A Brief History of Mutual Funds in India

Before we list the old mutual funds in India, let’s help to understand where they came from.

The Indian mutual fund story begins in 1963, when the Government of India established the Unit Trust of India (UTI) through an Act of Parliament. The Reserve Bank of India played a key role in setting it up. UTI’s goal was simple, give small investors access to the capital market.

In 1964, UTI launched its first scheme, Unit Scheme 1964 (US-64). For almost 24 years, UTI enjoyed a complete monopoly.

The industry evolved in four broad phases:

Phase	Period	Key Development
Phase 1	1963 – 1987	UTI monopoly, US-64 launched
Phase 2	1987 – 1993	Public sector banks enter; SBI MF, Canbank MF launched
Phase 3	1993 – 2003	Private players allowed; SEBI takes over regulation
Phase 4	2003 – Present	Rapid growth, digital platforms, SIP popularisation

This structure gave birth to the oldest mutual fund schemes in India that we still know today.

Read Also: Best SIP Mutual Funds in India

List of the Oldest Mutual Fund Schemes in India (Still Active)

Here is a curated list of oldest mutual fund schemes in India that have remained operational across decades:

Fund Name	Launch Date	Category	AUM (Approx.)	5-Year CAGR
UTI Mastershare Unit Scheme	Oct 1986	Large Cap	₹12,719 Cr	20.38%
SBI Magnum Equity ESG Fund	Jan 1991	ESG Equity	₹5,556 Cr	20.72%
LIC MF Aggressive Hybrid Fund	Mar 1991	Aggressive Hybrid	₹506 Cr	10.46%
UTI Flexi Cap Fund	May 1992	Flexi Cap	₹27,706 Cr	14.98%
Tata Large & Mid Cap Fund	Feb 1993	Large & Mid Cap	₹8,294 Cr	23.74%
Canara Robeco Equity Hybrid Fund	Feb 1993	Hybrid	₹11,450 Cr	12.34%
Franklin India Prima Fund	Oct 1993	Mid Cap	₹8,363 Cr	20%+
Franklin India Bluechip Fund	Dec 1993	Large Cap	₹9,000 Cr	14%+

Overview of Oldest Mutual Fund Schemes in India

1. UTI Mastershare Unit Scheme (1986) – The Pioneer

This is much more than the oldest mutual fund scheme in India – it’s a landmark moment in the country’s financial history. Back when most Indians had never even heard of the words ‘equity fund’, UTI Mastershare made retail investors’ first foray into large-cap stocks a little less daunting. It was a pretty big deal, let’s be honest.

Key highlights:

Invests about 95% of its capital in large-cap blue-chips.
Expense ratio: roughly 1.76% (for the regular plan)
10 years on, the CAGR is about 12.54%… and since inception, 15.35%
As of 2025, its AUM is ~₹12,719 crore

This fund’s navigated some of the toughest times – 1992’s Harshad Mehta scandal, the 2000 dot-com crash, the 2008 global financial crisis and the 2020 COVID selloff, to name a few. And somehow, it still managed to deliver. That’s a track record which deserves attention.

2. SBI Magnum Equity ESG Fund (1991) – The Reformer

Initially launched as Magnum Multiplier Scheme ’90, SBI Magnum Equity ESG Fund is one of the oldest public-sector equity funds still around today. In 2018, following SEBI’s new guidelines, it was rebranded to its current form and shifted its focus to ESG investing.

Key highlights:

Category: ESG/Thematic Equity
AUM is ₹5,556 crore
The expense ratio for the regular plan is about 1.94%
Over 5 years, the CAGR is around 20.72%

For those who believe in making a difference with their investments as well as getting solid returns, this one of the old mutual funds in India that fits the bill.

3. LIC MF Aggressive Hybrid Fund (1991) – The Balanced Veteran

For a long time, this scheme was known as LIC Balanced Fund and has been around since March 1991. As a classic hybrid, it roughly splits its portfolio ¾ in equity and ¼ in debt instruments.

Key highlights:

Category: Aggressive Hybrid
AUM is ₹506 crore
Expense ratio for the regular plan is roughly 2.48%
Over 5 years, the CAGR is about 10.46%

The fact that this fund has a relatively smaller AUM, unfortunately means it flies under the radar compared to its peers. However, its three-decade track record is something to take note of. It’s perfect for those who prefer a mix of equity and debt.

4. UTI Flexi Cap Fund (1992) – The Versatile Survivor

When launched in May 1992 as UTI Equity Fund , UTI Flexi Cap Fund was one of the oldest mutual funds out there, especially in the flexi-cap category. This gives the fund manager freedom to decide where to allocate the capital across large-, mid- and small-cap stocks – the key is getting the right mix based on valuations.

Key highlights:

Category: Flexi Cap
AUM is ₹27,706 crore
Expense ratio for the regular plan is about 1.64%
Over 10 years, the CAGR is about 13.20%

The size – getting on for ₹27,000 crore in AUM – is a testament to the years and years of investor trust that’s gone into the fund.

5. Tata Large & Mid Cap Fund (1993) – The Growth Seeker

Originally launched as Ind Sagar and later as Tata Young Citizens Fund, this scheme has gone through mandate changes and eventually settled into the Large & Mid Cap category. It balances the stability of large-cap companies with the growth potential of mid-caps.

Key highlights:

Category: Large & Mid Cap
AUM is ₹8,294 crore
Expense ratio: 1.78% (regular plan)
5-year CAGR: 23.74%
3-year CAGR: 20.65%

The 23.74% five-year CAGR makes this one of the stronger performers among oldest mutual funds in India.

6. Canara Robeco Equity Hybrid Fund (1993) – The Conservative Compounder

This fund has been building wealth quietly since February 1993. It maintains a 65–80% equity exposure and parks the rest in debt, making it a popular choice for moderate-risk investors.

Key highlights:

Category: Aggressive Hybrid
AUM is ₹11,450 crore
10-year CAGR: 12.34%
One-year return (June 2025): 10.12%

It is the go-to fund for investors who want equity participation without full equity volatility.

7. Franklin India Prima Fund (1993) – The Oldest Small & Mid Cap Fund

When talking about the oldest small cap mutual fund in India, Franklin India Prima Fund deserves a mention. Launched on 30 October 1993, it is one of the earliest funds to focus on mid- and small-cap stocks.

Key highlights:

Category: Mid Cap
AUM: ₹8,363 crore
Focus: High-growth mid and small-sized companies
Managed by Franklin Templeton AMC

Franklin Templeton itself took over the erstwhile Kothari Pioneer Mutual Fund, which was India’s first private sector AMC. That lineage makes Franklin India Prima Fund one of the oldest surviving small and mid cap oriented schemes in the country.

8. Franklin India Bluechip Fund (1993) – The Private Sector Pioneer

Launched in December 1993, this was one of the earliest large-cap equity funds from the private sector. It was originally set up by Kothari Pioneer (later acquired by Franklin Templeton) and has consistently focused on investing in established, blue-chip businesses.

Key highlights:

Category: Large Cap
Primary focus: Blue-chip, industry-leading companies
One of the earliest private-sector equity mutual fund schemes in India

What Makes These Old Mutual Funds Still Relevant?

You might wonder, with hundreds of new funds launching every year, why should you care about funds that are 30+ years old?

Here’s what decades of operation actually mean:

Multiple market cycles tested: these funds have made it through not just one, not two, but multiple market meltdowns: the Harshad Mehta fiasco in 1992, the dot-com implosion in 2000, the Lehman Bros. collapse in 2008, the demonetisation panic in 2016 and even the COVID-19 pandemic of 2020. That’s a lot of years of real-world testing that new funds just can’t match up to.
Experienced fund management: Fund houses that’ve been doing this for a long time – & the people running these funds have developed a lot of institutional knowledge over the years.
SEBI track record: Older funds have had time to get it right – to build in good practices for compliance & governance. They’ve also got a solid record with SEBI.
Historical data for analysis: 25-38 years of NAV history is an incredible resource for an investor. You can put these funds through all sorts of scenarios to see how they’d perform in different markets conditions.

Key Things to Check Before Investing

Age alone does not make a fund a good investment. Before putting money into any of these oldest mutual fund schemes in India, evaluate:

Expense ratio – Lower is better, especially for long-term compounding. Direct plans typically cost 0.5 – 1% less than regular plans.
Fund manager tenure – A great 30-year track record means less if the current manager has only been in the chair for 2 years.
Category relevance – Some funds like SBI Magnum ESG changed their mandate significantly. Check whether the current investment objective matches your goals.
Exit load – Most equity funds charge a 1% exit load if you redeem within 12 months.
Rolling returns – Don’t just look at point-to-point returns. Check 3-year and 5-year rolling returns to see consistency.

Benefits of Investing in Old Mutual Funds in India

Proven resilience across economic cycles
Established track record for performance benchmarking
Credible fund houses with strong governance
Diverse categories from hybrid to ESG to large & mid-cap
Investor trust built over decades, reflected in large AUMs

Limitations to Keep in Mind

Past performance is not a guarantee of future returns
Mandate changes over time can alter a fund’s risk profile significantly
Larger AUMs in some funds may limit agility, especially in mid and small-cap positions
Higher expense ratios in regular plans can eat into compounding over time
Old does not mean best a newer fund with a stronger portfolio strategy can outperform

How to Invest in Mutual Funds Through Pocketful

If you want to start investing in mutual funds the right way, Pocketful makes the entire process simple and structured. Here’s how you can get started:

Step 1: Create Your Account

The first step is to download the Pocketful app and sign up. The registration process is quick and takes only a few minutes.

Enter your mobile number and verify with OTP
Set your login credentials
Access your personal dashboard

Step 2: Complete Your KYC

KYC is mandatory before you can invest in any mutual fund in India. On Pocketful, the entire KYC process is online and paperless.

Add your PAN and Aadhaar details
Enter your bank account information
Complete the verification process

Step 3: Select a Mutual Fund

Once your account is ready, you can browse mutual funds based on your goal, risk appetite, and investment horizon. Pocketful lists funds across all major categories.

Choose from equity, debt, hybrid, or index funds
Filter by AMC, fund rating, or past performance
Compare expense ratios before finalising

Step 4: Start Your SIP or Lump Sum Investment

Decide how you want to invest – through a monthly SIP or a one-time lump sum. SIPs can be started with as little as ₹100 per month.

Set your SIP amount and date
Choose the fund and confirm your investment
Track your SIP performance directly from the dashboard

Pocketful gives you access to direct mutual fund plans with zero commission, so your expense ratio stays low and more of your money stays invested.

Conclusion

The oldest mutual funds in India – from UTI Mastershare (1986) to Franklin India Prima Fund (1993) – represent decades of disciplined investing through markets that were barely regulated, then rapidly modernised. These old mutual funds in India have compounded wealth through crises that most newer schemes have never faced. While age alone should not drive your investment decision, a long track record combined with strong current fundamentals is a powerful combination. Whether you are exploring the oldest small cap mutual fund lineage or looking for a hybrid with 30 years of data, Pocketful makes it easy to access all these funds in one place.

Invest in mutual funds with Pocketful – zero brokerage on delivery trades and completely free mutual fund investing, right from your phone.

Disclaimer: Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. Past performance is not indicative of future returns. This article is for informational purposes only and does not constitute investment advice.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	10+ Best Investment Plan for Monthly Income in India
2	What is an Open-Ended Mutual Fund & How to Invest in it?
3	How to Check Mutual Fund Status with Folio Number?
4	What is Solution Oriented Mutual Funds?
5	Mutual Fund Fees & Charges in India
6	History of Mutual Funds in India
7	What is Asset Under Management (AUM) in Mutual Funds
8	How to Compare Mutual Funds in India?
9	Best Pharma Mutual Funds in India
10	Best Books on Mutual Funds for Beginners in India

Frequently Asked Question (FAQs)

Which is the oldest mutual fund in India?
The UTI Master Share Unit Scheme – a fund that’s been around since a long time now – was launched on 15 October 1986. But it still is in circulation which is quite an achievement. It is being managed by UTI AMC and is a large-cap equity type of fund – that’s interesting. The AUM is a staggering over 12 thousand crores
What is the oldest mutual fund scheme in India from the private sector?
We all know that the first private sector funds were a way off when Franklin India Bluechip Fund came into being in December 1993 thanks to Kothari Pioneer (who subsequently got taken over by Franklin Templeton). They’ve consistently stuck to a strategy of investing in large-cap, blue-chip companies right from the start.
Which is the oldest small-cap mutual fund in India?
If you’re looking at the older small cap oriented schemes then the Franklin India Prima Fund is definitely one to consider – its been around since 30 October 1993. Its one of the first funds to aim at high growth smaller companies which can be an exciting thought.
Are old mutual funds better than new ones?
Old mutual funds in India do have the advantage of long history going through multiple market cycles – its a big plus when its time for you to decide. However, age is not the only thing that matters a fund’s current portfolio quality, expense ratio and the fund manager themselves are just as important when you are trying to make a decision about investing.
Is it safe to invest in the oldest mutual funds in India?
Any kind of investment in a mutual fund carries a market risk factor. But the oldest funds in India such as UTI Mastershare or Canara Robeco Equity Hybrid have proven to be resilient to market fluctuations over the years, a testament to their strong governance and risk management. So before you invest do take a look at the fund’s current performance and objective

June 3, 2026

Best Value Oriented Mutual Funds in India 2026

Value Oriented Mutual Funds invest in shares of companies that are currently trading below their real potential. These funds basically buy good stocks at lower prices. In 2026, value investing is gaining popularity because recent market dips have made many quality stocks much cheaper. This gives you a great chance to invest and grow your wealth over time. Value funds focus on grabbing hidden market bargains at discounted prices.

Understanding Value Investing

When you invest in a value fund, you are basically looking for hidden gems in the stock market. Value investing means buying stocks that are priced lower than their actual worth. The core philosophy behind value mutual funds is that the market sometimes overreacts to bad news. This panic drops the prices of fundamentally good companies.

Fund managers identify these undervalued stocks by deeply studying the financial health, cash flows, and business models of the companies. They look for strong businesses facing temporary problems. The margin of safety is very important here. It is the gap between the real value of the stock and its current low price. A larger margin of safety protects your money if the market takes longer to recover.

Top 10 Best Value Oriented Mutual Funds to Invest in India in 2026

Fund Name	AUM (Rs in Crore)	Expense Ratio (%)	3 Year Return (%)	5 Year Return (%)
ICICI Prudential Value Discovery Fund	59,588	0.82	17.35	18.21
HSBC Value Fund	14,873	0.74	21.69	20.21
Bandhan Value Fund	9,907	0.59	15.14	17.29
Nippon India Value Fund	8,919	1.07	19.93	18.22
Tata Value Fund	8,592	0.82	16.85	16.97
HDFC Value Fund	7,324	0.98	18.24	16.87
Aditya Birla Sun Life Value	6,388	0.87	19.83	16.40
Kotak Contra Fund	5,153	0.58	19.18	16.92
Templeton India Value Fund	2,150	0.78	14.94	17.82
JM Value Fund	826	1.25	18.24	17.62

Overview of Top 10 Best Value Oriented Mutual Funds to Invest in India in 2026

Here is a simple and crisp list of the top funds in this category:

1. ICICI Prudential Value Discovery Fund

It holds a huge AUM of Rs 59,588 crore as of May 2026. The fund focuses mostly on large companies, keeping your money relatively safe. It has given a strong three year return of 17.35%.

2. HSBC Value Fund

This is a highly rated fund with an AUM of Rs 14,873 crore. It invests actively in mid and small companies to boost growth. The fund delivered an impressive three year return of 21.69%.

3. Nippon India Value Fund

With an AUM of Rs 8,919 crore, this fund looks for strong cash flows. It has a good mix of stocks across different market sizes. You get a solid three year return of 19.93%.

4. HDFC Value Fund

This fund manages Rs 7,324 crore and has a very low turnover rate. This means they buy and hold stocks patiently. It gave investors a three year return of 18.24%.

5. Tata Value Fund

Managing Rs 8,592 crore, this fund is led by an experienced manager. It holds a good amount of banking and finance stocks. The three year return stands at 16.85%.

6. Bandhan Value Fund

This fund has an AUM of Rs 9,907 crore. A very low expense ratio of just 0.59% makes this fund special. It delivered a three year return of 15.14%.

7. Aditya Birla Sun Life Value Fund

It holds Rs 6,388 crore in assets. The managers follow a strict value investing framework. It boasts a good three year return of 19.83%.

8. Kotak Contra Fund

This fund follows a contrarian approach which is very similar to value investing. It has an AUM of Rs 5,153 crore and charges a low expense ratio of 0.58%. It delivered a three year return of 19.18%.

9. Templeton India Value Fund

This is a smaller fund with an AUM of Rs 2,150 crore. It mainly targets established companies to beat inflation. The fund has given a steady three year return of 14.94%.

10. JM Value Fund

Being the smallest on our list, it manages Rs 826 crore. It takes an aggressive approach with smaller companies. It provided a three year return of 18.24%.

Why Invest in Value Oriented Mutual Funds in 2026?

Attractive Valuations After Market Corrections: The Indian market has seen some recent dips in early 2026. This has made many quality stocks available at a very good discount. You can easily buy top companies without paying a heavy price.
Strong Potential for Long-Term Wealth Creation: Buying stocks at a lower price sets a strong base for your portfolio. It gives you a great chance to build solid wealth over the years. As the market discovers their true worth, your investment grows.
Suitable for Volatile Market Conditions: The market can be very unpredictable. Since these stocks are already priced cheaply, they are less likely to fall heavily during a sudden crash.
Opportunity to Buy Quality Stocks at Lower Prices: Even the top companies face short term issues. You get to buy a piece of these strong businesses while they are temporarily ignored by the crowd.
Increasing Investor Interest in Value Funds: Many investors are now moving away from very costly tech and momentum stocks. This growing interest is pushing up the prices of value stocks and making these funds more popular in 2026.

Features of Value Oriented Mutual Funds

Focus on Fundamentally Strong Companies: These funds do not chase market hype. They only pick companies with good management, low debt, and steady cash flows.
Long-Term Investment Approach: You need to be patient with these funds. The market takes a lot of time to realize the true worth of a discounted stock.
Diversified Equity Portfolio: These funds spread your money across different sectors like banking, IT, and energy. This mix helps keep your overall investment safe.
Potential for Higher Risk-Adjusted Returns: They focus a lot on protecting your initial capital. This gives you a smoother ride compared to other high risk equity funds.
Active Fund Management Strategy: Finding hidden gems requires deep research and hard work. The fund managers actively buy and sell stocks to get the best deals for you.

Advantages of Investing in Value Funds

Opportunity to make good profits: These funds try to beat the regular market returns. Buying cheap helps them capture larger gains when the stock price finally goes up.
Lower Risk: Momentum funds buy stocks that are already costly. Value funds buy cheap stocks, which reduces the risk of huge losses during a fall.
Benefit from Market Re-Rating: Sometimes the market changes its mind about a boring company. When big investors start buying it, the stock price shoots up quickly.
Ideal for Long-Term SIP Investors: A Systematic Investment Plan works best here. You keep buying more units at lower prices whenever the market falls.
Better Portfolio Diversification: It is good to have different styles in your portfolio. Finding the best value funds in India can really help diversify your overall portfolio and balance your risk.

Risks Associated with Value Mutual Funds

Value Trap Risk: Sometimes a cheap stock is cheap for a valid reason. If the company is actually failing, the stock price might never recover at all.
Underperformance During Bull Markets: When the whole market is rising fast, value funds might seem slow. They refuse to buy overly expensive stocks during a wild rally.
Patience Required for Returns: These stocks sometimes might require years to get back to their real value.
Market Timing Challenges: If the manager buys too early, your portfolio might see some short term drops.
Sector Concentration Risks: Managers often find cheap stocks grouped in just one or two sectors. If those specific sectors do poorly, the fund will also suffer.

Factors to Consider Before Investing in Value Mutual Funds

Assets Under Management (AUM): A larger AUM shows that many investors trust the fund. But smaller funds can sometimes be more flexible in picking small stocks.
Fund Manager Track Record: The success of the fund depends completely on the manager. You should check if they have managed funds well during bad market phases.
Expense Ratio: This is the yearly fee charged by the mutual fund company. You should look for a lower expense ratio to save more of your money.
Consistency of Returns: Do not just look at the last one year of profits. Check if the fund has given steady returns over three and five years.
Portfolio Holdings and Sector Allocation: Look at the top stocks the fund owns and see if it is fitting as per your investment.
Risk-Adjusted Performance: You should know how much risk your manager is taking to earn money. You want a fund that keeps your money relatively safe during bad times.
Exit Load and Lock-In Considerations: Most of these funds do not lock your money. However, they usually charge an exit load fee of around 1% if you withdraw before one year.

Taxation of Value Oriented Mutual Funds in India

Short-Term Capital Gains Tax: If you sell your mutual fund units before holding them for one full year, you pay short term tax. In 2026, this tax is a flat 20% on your profits.
Long-Term Capital Gains Tax: If you hold the units for more than one year, the tax is 12.5%. The best part is that you get an exemption on the first Rs 1.25 lakh of profit every financial year.
Taxation on SIP Investments: Every single monthly SIP is treated as a separate investment. Each monthly installment must complete one year to get the lower long term tax benefit.
Indexation Benefits Explained: Equity mutual funds do not offer indexation benefits. Your tax is calculated purely on your direct profit without adjusting for inflation.

Conclusion

Investing in value funds can be a very smart move for your future. These funds help you buy strong businesses at very reasonable prices. While they do require a good amount of patience, the long term rewards are usually worth the wait. Always remember to do your basic research before parking your hard earned money.

For more market insights and investment opportunities, start your mutual fund journey with Pocketful. Explore a wide range of mutual funds through an easy-to-use platform designed for both new and experienced investors.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Top Gold Mutual Funds in India
2	Best Silver Mutual Funds to invest in India
3	Best Brokers for Mutual Funds
4	Best Gold Investment Schemes in India
5	Best Money Market Mutual Funds in India
6	Best Thematic Mutual Funds in India
7	Top 10 Mutual Fund Distributors in India
8	Best Corporate Bond Funds in India
9	Best Passive Mutual Funds in India
10	Best Mid-Cap Mutual Funds in India

Frequently Asked Questions (FAQs)

What is a Value Oriented Mutual Fund?
It is a type of equity mutual fund that invests in shares of companies trading below their actual worth. The goal is to buy cheap and wait for the market to realize their true value.
Are value funds safe for beginners?
They carry standard stock market risks, but they are generally less risky than momentum or growth funds. They provide a good margin of safety because they buy stocks that are already priced low.
How long should I keep my investment?
Investment shall be kept for at least 5 to 7 years as investing for long term helps you evade daily market fluctuations and the fund manager has enough time to bring your investments at par.
What is a value trap?
It means a stock that is looking cheap is not due to market conditions but actually it is a falling business. If the company is facing a crisis and cannot recover then you can face huge losses.
Can I invest in value funds through SIP?
Yes, investing through a Systematic Investment Plan (SIP) is highly recommended. It helps you buy more units automatically when the market falls, lowering your average purchase cost.

June 3, 2026

Category: Mutual Funds

What Is Stock SIP?

What is Stock SIP

Is stock SIP a good choice

Features of Stock SIP

Benefits of Stock SIP

Limitation of Stock SIP

Difference between Stock SIP and Mutual fund SIP

Who should invest in stock SIP

Steps to invest Stock SIP

Conclusion

Frequently Asked Questions (FAQs)

What is Stock SIP Meaning?

What are the main benefits?

How to use this SIP feature?

Is a Demat account needed?

Can investors stop the payments?

Mutual Fund Redemption Explained

Meaning of Mutual Fund Redemption

Partial vs Full Redemption

How to Redeem Mutual Funds Online Step by Step

Mutual Fund Redemption Process Offline Method

SIP Redemption Time: What You Need to Know

Mutual Fund Redemption Timeline How Long Does It Take?

Cut-Off Time for Mutual Fund Redemption

Exit Load: The Charge You Must Know About

How Exit Load Is Calculated

Typical Exit Load Structure

Tax on Mutual Fund Redemption

Equity Mutual Funds

Debt Mutual Funds

The Right Moment to Sell Your Mutual Fund?

How to Invest in Mutual Funds with Pocketful

Step 1: Create Your Account

Step 2: Complete Your KYC

Step 3: Select a Mutual Fund

Step 4: Start Your SIP or Lump Sum Investment

Conclusion

Frequently Asked Questions (FAQs)

What is Redemption in Mutual Fund Investing?

How Long Does Mutual Fund Redemption Take Anyway?

What’s the Deal with SIP Redemption Time?

Can I Redeem My Mutual Fund Any Time I Want?

How Do I Go About Reducing my Mutual Funds Online?

Is Mutual Fund Redemption Taxable?

What Time is the Cut-Off for Mutual Fund Redemption?

What Is NAV in Mutual Funds?

NAV Full Form and Meaning

How Is NAV Calculated?

Example of NAV Calculation

Does NAV Determine Mutual Fund Returns?

What Is a Good NAV for a Mutual Fund?

Why Some Funds Have Higher NAVs

Why New Mutual Funds Usually Have Lower NAVs

How Much NAV Is Good in Mutual Fund Investments?

Factors That Matter More Than NAV

1. Fund Performance

2. Risk Profile

3. Expense Ratio

4. Fund Manager Track Record

5. Portfolio Quality

NAV in SIP Investments

Common Myths About Mutual Fund NAV

How to Choose a Mutual Fund Instead of Looking at NAV

Conclusion

Frequently Asked Questions (FAQs)

What is the best NAV for mutual funds?

Is a higher or lower NAV better?

How to know if NAV is good or bad?

Which NAV will I get for mutual fund?

What is a normal NAV?

Best Credit Risk Funds in India 2026

What are Credit Risk Funds?

Best Credit Risk Mutual Funds

Ratings of Credit Risk

Features of Credit Risk Mutual Funds

Advantages of Investing in Credit Risk Mutual Funds

Disadvantages of Investing in Credit Risk Funds

Who should invest in credit risk funds

Factors to Consider Before Investing in a Credit Risk Fund