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Best SIP Plan for 10 Years in India 2026

Ten years is a long time. Long enough for markets to crash, recover, and hit new highs. Long enough for compounding to do the heavy lifting. If you’ve decided to commit to a best SIP plan for 10 years, the hardest part, honestly, isn’t the money; it’s picking the right fund and staying the course. This guide cuts through the noise and tells you exactly what’s worked, what to look for, and which funds are worth considering today.

Why 10 Years Is the Sweet Spot for SIP Investing

Most equity mutual funds need time to breathe. Short-term, they’re volatile. But stretch the horizon to 10 years, and the story changes dramatically.

Here’s what the data tells us. According to AMFI and various fund performance reports, equity mutual funds in India have historically delivered SIP returns of 11% to 14% CAGR over 10-year periods. Some categories, like small and mid-cap funds, have done even better, often crossing 18–22% during strong market cycles.

The Nifty 50 index has delivered roughly 11–13% CAGR over long periods. A well-chosen active fund can beat that by 2–5% annually. Over 10 years, that difference doesn’t add up, it multiplies.

Let’s put real numbers to it:

Monthly SIP	10 Years @ 12% CAGR	10 Years @ 16% CAGR	10 Years @ 18% CAGR
₹5,000	₹11.6 lakh	₹14.9 lakh	₹17.1 lakh
₹10,000	₹23.2 lakh	₹29.8 lakh	₹34.3 lakh
₹20,000	₹46.4 lakh	₹59.6 lakh	₹68.5 lakh

Total invested at ₹10,000/month over 10 years = ₹12 lakh. Returns are indicative and based on historical category averages. Real returns will differ.

The difference between 12% and 18% return is not just in terms of percentage but also in terms of lakhs of rupees. And this is precisely why selecting the right SIP for 10 years becomes very crucial for an investor.

Best SIP Plans for 10 Years in India: Top Funds to Consider

Below is a selection of top-performing mutual funds based on various criteria of performance, experience, and category appropriateness for 10-year SIPs.

Fund Name	Category	AUM (Cr.)	5-Year CAGR	10-Year CAGR	Risk Level
Parag Parikh Flexi Cap Fund	Flexi Cap	₹1,41,446	15.05%	17.5%	Very High
HDFC Mid-Cap Fund Direct Growth	Mid Cap	₹97,350	21.06%	19%	Very High
Nippon India Small Cap Fund	Small Cap	₹74,604	19.92%	23%+	Very High
SBI Large Cap Fund	Large Cap	₹53,527	12.05%	15%+	High
Nippon India Large Cap Fund	Large Cap	₹51,650	16.27%	16.95%	High
ICICI Prudential Value Discovery	Value	₹58,954	16.60%	16%+	Very High
Mirae Asset Large Cap Fund	Large Cap	₹37,692	10.42%	13%+	High
Quant ELSS Tax Saver Fund	ELSS	₹13,070	17.18%	Strong	Very High

(Returns and data as of 24 June 2026 )

Overview of SIP Plan for 10 Years in India

1. Parag Parikh Flexi Cap Fund

This is perhaps the most recommended fund for first-time SIP investors looking for a single, reliable option. It’s not the flashiest performer in bull markets, but it doesn’t collapse badly in bear markets either. That balance is rare. With an AUM of 1,41,446.

What makes this fund different is its partial allocation to international stocks, particularly in the US markets. This gives the portfolio some natural hedge against Indian market downturns. When Indian markets fell sharply in 2022, this fund’s global exposure cushioned the blow.

2. HDFC Mid-Cap Fund direct Growth

For investors asking which SIP is best for 10 years with a growth bias, HDFC Mid-Cap Opportunities is a name that consistently comes up among advisors. It has one of the longest track records in the mid-cap category and has managed to remain competitive even as its AUM crossed ₹97,300+ crore.

Mid-cap funds historically outperform large caps over 10-year periods. The trade-off is that they also fall harder during market corrections. If you can stomach a 30 – 40% drawdown in a bad year without panicking, mid-cap SIPs tend to reward patience handsomely.

3. Nippon India Small Cap Fund

If you want to see what one of the best SIPs over the past decade actually looks like, Nippon India Small Cap Fund is as good an example as any.

Launched back in September 2010 this little gem has been led by Samir Rachh since he took over in 2017 and has consistently come in amongst the top 30 per cent of funds in its category – which is quite a feat, by CRISIL’s reckoning. Now, if you’d invested ₹10,000 a month in this SIP for the last 10 years – a total of roughly ₹12 lakh – your investment would’ve grown to a tidy ₹50.66 lakh. That’s a 27.34% annualised return. And no, this isn’t some rosy projection – this is the real deal.

The fund holds a massive, diversified portfolio of 200+ stocks, which reduces concentration risk significantly compared to smaller small-cap funds.

4. SBI Largecap Fund

SBI Bluechip Fund is one of the most favoured large-cap funds in India by numbers alone. It may not be the best-performing fund on this list, but it is consistent, well-run, and comes from one of the most respected institutions in Indian banking.

With an AUM of ₹53,527 crore, the fund enjoys strong investor trust and offers exposure to established market leaders, making it a reliable choice for long-term wealth creation.

5. Nippon India Large Cap Fund

To be honest, most large-cap funds tend to do little more than just outperform the market slightly. Nippon India Large Cap fund stands out from the crowd, though, because it has consistently outperformed the Nifty 50 TRI benchmark for periods of a year, 3 years, 5 years, 7 years and 10 years.

A steady investment of ₹10,000 a month into this fund via SIP over 10 years is actually worth a pretty penny, around ₹ 29.05 lakh, whereas the Nifty 50 benchmark index would only see you around ₹25.9 lakh.

6. ICICI Prudential Value Discovery Fund

The managers of the fund focus on buying undervalued stocks and waiting for the market to figure out their true value. It’s a simple value-investment strategy which may not be so great in a bull run driven by momentum, but can do well in a market correction or rebound.

Managing assets worth ₹58,954 crore, the fund has built a strong track record by sticking to its value philosophy across different market cycles.

7. Mirae Asset Large Cap Fund

The Mirae Asset Large Cap Fund has gained a good reputation due to its prudent investment strategy and emphasis on quality large cap firms. It concentrates on sustainable growth potential of its companies along with their solid financial fundamentals as opposed to market fads.

The Mirae Asset Large Cap Fund is worth ₹37,692 crore, reflecting the trust of the investors in it.

8. Quant ELSS Tax Saver Fund High Returns + Tax Savings

Among the best SIP plans for 10 years in India that also help you save tax, the Quant ELSS Tax Saver Fund stands out. The 5-year CAGR is among the highest in its category at 17.18%+, though this level of return comes with equally high volatility. Tax benefit: Up to ₹1.5 lakh deduction under Section 80C per year

One thing worth knowing Quant AMC uses a quantitative, data-driven investment approach. It tends to be more aggressive in both entry and exit decisions than traditional fund managers. The returns have been exceptional, but so has the volatility. This isn’t a fund you should choose for short-term peace of mind.

Read Also: Best SIP Mutual Funds in India

How to Choose the Best SIP for 10 Years

It is not just about choosing the best-performing mutual fund scheme. Instead, here is an approach you should consider while picking a mutual fund scheme:

Check the compatibility between risk tolerance and the type of fund category: For example, small and midcap funds could drop by 40-50 percent in one financial year. So, if this scares you and makes you discontinue your SIP, then go for large cap or flexi cap fund schemes.
Look at rolling returns, not just point-to-point CAGR: A fund showing 25% returns over 5 years could have delivered terrible results in some years and exceptional ones in others. Rolling returns show consistency. A fund with 14% rolling returns beats one with 25% point-to-point but massive variance.
Check the expense ratio, especially in direct plans: A difference of 0.5% in expense ratio may seem trivial. But over 10 years on a ₹10,000/month SIP, that half a per cent can cost you ₹3 – 5 lakh in forgone compounding. Always invest in Direct Plans when possible.
Fund manager tenure matters: A fund’s 10-year track record is only meaningful if the same person managed it for most of those years. If the fund manager changed 2 years ago, you’re essentially betting on a different team using old data.
Don’t over-diversify across too many SIPs: Three to four funds across different categories is ideal. More than six equity funds means overlapping portfolios; you’re essentially paying multiple expense ratios to hold the same large-cap stocks in each fund.

What Category of Fund Is Best for a 10-Year SIP?

Investor Type	Suggested Category	Expected 10Y CAGR (Historical Range)
Conservative	Large Cap / Hybrid	11–14%
Moderate	Flexi Cap / Multi Cap	13–16%
Aggressive	Mid Cap / Small Cap	16–20%+
Tax-Saver	ELSS	12 – 16% (with Section 80C benefit)

For most investors, a mix of one flexi-cap and one mid or small-cap fund covers both stability and growth across a 10-year SIP horizon.

SIP Returns Power of Staying Invested Through Market Falls

There is something which new SIP investors will only realise once they experience it for themselves. Market correction is not the demon of SIP; it is its best friend.

When the market goes down by 20-30%, your monthly SIP buys more units when the prices are low. That is rupee cost averaging at work. When the market corrects and starts going up, those low-cost units generate huge profits. The investors who discontinued their SIPs in March 2020 (coronavirus market crash) have missed one of the fastest corrections in India’s stock market history.

The investors who invested consistently in SIPs during that period earned much higher returns from their 10-year SIP investments than the returns they would have earned from timing their entry and exit.

How to Start a SIP 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 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

Choosing the best SIP plan for 10 years in India is less about finding a perfect fund and more about finding one you’ll actually stick with. The data is clear: Equity SIPs held for 10 years across quality funds have historically multiplied wealth 2.5x to 5x, depending on the category. Whether you go with Parag Parikh Flexi Cap’s tried-and-tested stability, Nippon India Small Cap’s bold moves, or SBI Bluechip’s steady-as-it-goes reliability, the real key to success is sticking to your guns, ignoring the ups and downs, and avoiding the temptation to panic when markets slump. Start your 10-year SIP journey today on Pocketful – and with zero brokerage on delivery, as well as free mutual fund investing, nothing should stand in the way of letting your investments compound nicely.

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Frequently Asked Questions (FAQs)

What’s the best SIP for 10 years in India?
To be honest – there isn’t a single “best” answer. What you choose will depend on how much risk you’re prepared to take on. Aggressive types might find HDFC Mid-Cap Opportunities or Nippon India Small Cap give them the kind of strong 10-year returns they’re after. More moderate investors will probably do alright with Parag Parikh Flexi Cap, while those who prefer to play it safe might want to look at SBI Bluechip or Nippon India Large Cap.
What’s been the best SIP return in the past 10 years in India?
Nippon India Small Cap has been up there in terms of performance. Put in a monthly SIP of ₹10,000 over 10 years (a total of ₹12 lakh invested) and it grew to around ₹50.66 lakh – which works out at around a 27% annualised return. But remember, results can vary wildly depending on which fund you choose and when you start investing.
Is 10 years enough for a SIP in equity mutual funds?
Most experts would agree that 10 years is the bare minimum for equity fund SIPs. After all, most equity funds have historically done okay over any 7 to 10 year period in India – even when you factor in the odd major market crash.
What happens if I just stop my SIP mid-stream?
The good news is that the units you’ve already got invested will continue to grow. The bad news is that future instalments will stop. One piece of advice – don’t stop investing during a market downturn if you can help it. You’re likely to miss out on the recovery gains when units are at their cheapest.
How much should I invest in my SIP each month for 10 years?
Well, it all depends what you want to achieve. If you’re targeting a total of ₹50 lakh in 10 years at 15% annual growth, you’ll probably need to put in somewhere in the region of ₹17,000-18,000 each month. A SIP calculator can give you a better idea of what size monthly investment will get you to your goals.
Is direct plan better than a regular for a 10-year SIP?
You can stop your existing SIP and start a new one in a different fund at any time. But any units you’ve got already invested in the old fund will stay put. One word of caution – if you switch too often, you’re defeating the point of SIP investing in the first place. Only change your fund if you think a different one has genuinely underperformed its benchmark for 2-3 consecutive years.

June 27, 2026

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.

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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

How to Earn Money in Share Market?

The more people you ask about the share market, the more unique answers you will get. Everyone has a different story on how they earned money here. Some will talk about a stock they held for years. Others will mention a lucky intraday trade.

But there will be only a few who will admit they lost money for two years before anything clicked. That last group is usually the most honest one in the room. This is where you need to understand that, as beginners, learning to trade and earn in the share market is not just luck but is what you call effort and a continuous learning process.

It’s a slow build of habits, mistakes, and small corrections. There’s no single video or course that turns you into a profitable investor overnight, no matter what the thumbnail promises. This piece walks through what actually works for Indian investors and traders, without the hype.

Get the Basics Right First

New investors usually skip straight to “which stock should I buy” without understanding what they’re even buying. That’s backwards.

A stock is a slice of ownership in a real business. It’s not a number on a screen that goes up because everyone is talking about it on Twitter. Before you put money in, spend a weekend learning these:

Know the meaning of the shares and what investing in them means.
The difference between trading and investing.
Learn about the different indices that are available in the market and how they work.
A few basic terms: P/E ratio, market cap, dividend yield, and others.

You don’t need a finance degree for any of this. You just need enough knowledge not to fall for obvious traps, like buying something purely because it’s trending.

Long-Term Investing or Short-Term Trading: Pick Your Lane

This is where most people get confused, mostly because they try to do both without realizing it. Long-term investing means buying decent companies and sitting on them for years while compounding does its job quietly in the background.

Short-term trading is the opposite. You’re in and out within days, sometimes hours, trying to catch price movement.

Both strategies are great but require different plans and is suited for different goals, which should be very clear to anyone trading.

To get a better understanding, here is a quick comparison for you:

Basis	Long-Term Investing	Short-Term Trading
Time Horizon	Years	Minutes, hours, days, or weeks
Primary Goal	Build long-term wealth	Earn from short-term price movements
Focus	Company fundamentals	Price trends and market momentum
Risk Level	Generally lower over time	Generally higher
Trading Frequency	Low	High
Research Needed	Financials, business growth, industry	Technical analysis, charts, market news
Suitable For	Investors with long-term goals	Active traders who can monitor markets
Returns	Through compounding and long-term appreciation	Through frequent buying and selling opportunities

Investing money in the share market is not easy. This is because you have so many options for yourself. Some of the key ones are:

1. Long-Term Investing in Quality Stocks

If you are planning for long-term investing, this is great. Look for stocks with strong fundamentals. This will ensure that the amount you invest will help you with the growth.

2. Stock SIP

Invest a fixed amount in selected stocks regularly through a Stock SIP. This is safe and ensures you invest in a planned manner. It is good if you are new to investing.

3. Dividend Investing

If you want a regular income, then look for companies that pay dividends. It will allow you to have regular passive income as well, which can help you greatly.

4. Investing During Market Corrections

Market corrections are a good time to invest. But this is only when you understand the market and follow well. Investing in a downturn can help earn a good return when the market flips positively.

5. Sector-Based Investing

You must look for sectors with strong future growth potential. These are technology, healthcare, or renewable energy. Growth across the industry can benefit multiple companies within the sector.

6. Swing Trading

It involves holding stocks for a few days or weeks. The aim is to capture short-term price movements. It requires technical analysis, discipline, and effective risk management.

7. Margin Trading Facility (MTF)

MTF allows investors to buy stocks using funds provided by the broker. While it can increase purchasing power, it also increases risk and potential losses.

8. Index Funds and ETFs

Index Funds and ETFs provide exposure to multiple companies through a single investment. They offer diversification, lower costs, and a simple way to participate in market growth.

9. IPO Investing

Investors can apply for Initial Public Offerings (IPOs) before a company gets listed on the stock exchange. Successful investments may benefit from future business growth and listing gains.

10. Value Investing

Value investing focuses on identifying quality stocks. These are usually trading below their intrinsic value. Investors buy these stocks with the expectation that the market will eventually recognise their true worth.

Many people think that making money in the share market on a daily basis is impossible. Well, if you do not have proper knowledge, strategy, and plan in place, then this is definitely something that you might face. This is where you need to follow certain steps that can help you stay ahead in the process.

1. Trade Only After Having a Strategy

Trading should never be based on trends. You must make your call based on some strategy or plan. The trades should be focused on the detailed analysis of what you know about the market. Define your risk profile and return expectations, and then work on the same.

2. Follow Technical Analysis

If you are a daily trader, then you must know how to read the charts and news. You must be well aware of the fundamentals to make a solid foundation for your decisions. But you must also know the signals that can guide you.

3. Manage Your Risk

Avoid risking a large part of your capital on a single trade. Many traders follow the 1% or 2% rule, where only a small percentage of their trading capital is exposed in each trade.

4. Never Trade With Emotions

As a trader, you should never rely on emotions. Greed or even fear are some of the emotions that can lead to wrong calls. This can impact your trading and even your profits. It is important that you make decisions based on analysis only.

5. Review Every Trade

Maintain a trading journal with your entry price, exit price, profit or loss, and the reason for taking the trade. You must check your trades regularly. This will help you know what worked well and where the mistakes were. This is key to making better plans for the future.

6. Accept That Some Days Are Better Left Untouched

You will not get good trades every day. Some of the days will be the ones where you might fail to get good deals. This is totally fine, and there is no problem with it. You must understand this, and you should avoid trading if there are no good options as per your plan.

This naturally targets how to earn money in share market daily and how to earn money in stock market daily while giving readers practical, actionable guidance.

When you understand how to earn money from share market, it is great. But there is another side to the story as well. This is where you must understand why avoiding losses is important. This is where you would need to avoid some of the common mistakes, which are:

Following stock tips without doing your own research.
Overtrading to chase share market profit.
Investing without a stop-loss or risk management plan.
Putting all your money into a single stock.
Letting emotions drive buying and selling decisions.
Ignoring brokerage charges, taxes, and other trading costs.
Trying to recover losses through revenge trading.
Investing without a clear goal or strategy.
Expecting guaranteed or daily profits from the market.
Failing to review and learn from past investments or trades.

Manage Your Risk Effectively

Risk management is one of the key aspects when it comes to trading. But many people would rather avoid it. The reason is the lack of understanding of why it is important and how you can actually work on the same.

While there are various ways through which you can manage the risks, there are certain simple things that you can start now and build a better risk profile. The keys ways to manage risks are as follows:

Invest the money that is free and not needed immediately.
Ensure that you diversify your investment and are not focused on one product or sector.
Avoid putting all your capital into a single stock.
Use of the stop-loss to ensure you do not incur high losses.
Having a proper set of emergency funds helps keep your portfolio well-managed.
Review your portfolio regularly and rebalance it when needed.

Start Your Stock Market Journey With Pocketful

Learning how to earn money from the share market starts with choosing the right platform. This is where Pocketful stand out. This is a platform where you get all the resources and support to ensure that your trades are done well, and there is proper guidance as well.

With Pocketful, you can:

Open your Demat and trading account online.
Invest in stocks, ETFs, IPOs, and mutual funds.
Access advanced charts and market insights.
Manage portfolio in one place.
Invest or trade with a seamless mobile experience.

If you are ready to begin your investment journey, open your account with Pocketful and take the first step towards building long-term wealth through the stock market.

Read Also: What is MIS in Share Market?

Conclusion

Many traders think that there is some secret that people use who win well in trades. But the truth is that there is no such secret. The people who are earning from the trades are the ones who are able to manage well and ensure that there is a proper flow. They are the one who follow the market, understand the rules, and design plans for them.

Whether you lean toward long-term investing or active trading, the results are based on how well you plan and work.

If you’re ready to start putting any of this into practice, the platform you choose can make the process a lot smoother. Pocketful offers a clean, easy-to-use interface, zero account opening charges, low brokerage, and tools suited to both beginners and active traders.

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Frequently Asked Questions (FAQs)

Can beginners actually make money in the Indian stock market?
Yes. It is possible for beginners to make money in the Indian stock market. When you plan well and get support or guidance, you can start earning.
Is daily trading more profitable than long-term investing?
Not really, or at least not reliably. Daily trading can pay off quicker but comes with higher risk and demands a lot more time and attention. Long-term investing tends to be gentler on people who can’t watch the market all day.
How much money do I actually need to start investing?
Less than most people assume. A few hundred rupees through fractional shares or a mutual fund SIP is enough to get started and build the habit.
What’s the safest way to make money from share market investing?
A diversified, long-term portfolio built around solid companies with proper risk planning is what will make your portfolio safer.
Does the broker I choose actually affect my returns?
More than people think. Low brokerage, quick execution, decent support, and useful research tools all add up, especially if you’re trading often.

June 26, 2026

CultFit Case Study: Business Model, Revenue, Founders & Growth Strategy

Fitness industry in India has seen rapid growth recently. People want to stay active and live better lives. We can see how this brand totally changed the way Indians view daily exercise. They combined modern technology with physical gyms to create a highly engaging platform for everyone.

The CultFit Business Model focuses on making workouts fun, flexible, and accessible. You do not have to stick to boring machines anymore. In this blog, we will explore the complete journey of this famous startup. We will look at their operations, founders, and overall market impact. Read on to discover how a simple idea transformed into a giant health empire.

Company Overview

The Company established in 2016 with the brand name CureFit. In a very small period it gains the trust of indian users and became a famous brand in fitness industry specially amongst working professionals and youngsters. The brand operates as a complete health platform that mixes online services with offline physical centres.

CultFit has reached a milestone to became a unicorn in November 2021 and getting a valuation of 1.5 billion dollars. Investors like zomato, Tata Digital, and Temasek invested in the company’s speedy growth.With a presence in 60+ cities and a network of 700+ gyms, Cult.fit has established itself as a leading fitness platform in India.

About Founders of CultFit Company

Mukesh Bansal and Ankit Nagori have excellent experience of the Indian startup ecosystem, they started the company in Bangalore. They previously worked together at the famous e-commerce company Flipkart.

Mukesh Bansal is also a founder of fashion platform Myntra. His experience of consumer habits played a crucial role to grow the brand. Ankiti has strong business skills and a sharp operational focus to the team. Recently, Naresh krishnaswamy was promoted to the role of CEO. Mukesh Bansal now serves as the executive chairman to guide the future vision.

Fitness Industry in India and Contribution of CultFit

The fitness industry in india is getting the most of the attraction after covid which help the industry to grow at a rapid pace in India is expanding at a very fast pace. As per Deloitte, the value of the Indian fitness industry is ₹16,200 crores in 2024 and is estimated to reach ₹37,700 crore by 2030 on account of increased health consciousness.

Here is how the company contributed to this massive industry growth:

Making fitness fun: The brand replaced boring gym machines with exciting group workouts. They introduced formats like Zumba, boxing, and yoga to keep things fresh.
Using technology: They launched a simple mobile app for all users which help user to book their classes and track fitness goal on their phones.
Improving access: The company opened standard and high quality gyms across multiple cities. This made premium fitness available to a much larger audience.
Building a community: The brand encouraged people to work out together in groups. This greatly improved member motivation and built a strong fitness culture.

Business Model of CultFit

The company operates on a smart hybrid model that connects physical gyms with digital health solutions. This approach helps them earn money from multiple sources.

Subscription services: The main revenue source is the subscription plan called Cultpass. This pass allows members to use different gyms and attend various classes across the country.
Franchise operations: They used franchise model to expand business. by partnering with local gym owners to increase their physical presence without spending huge amounts.
Online classes: Cultfit app offers live and recorded workout sessions. This is perfect for users where company is not present physically.
Product sales: The company also sells fitness equipment, health food, and sportswear.
Omnichannel integration: They acquired Gold’s Gym in India to boost their offline presence. This gave them access to many Tier 2 and Tier 3 cities instantly.

Read Also: PharmaEasy Case Study

Product Portfolio of CultFit

The company offers a wide range of products to cover all basic health needs. They aim to be a single stop for everything related to your wellness.

Cult.fit: This is their core fitness service. It offers dynamic group classes, personal training, and premium gym access.
Eat.fit: This offers healthy meals to the consumer. which also helps thier members to maintain a strict calorie deficit diet while working out.
Mind.fit: This segment focuses entirely on mental wellness. It provides guided yoga and meditation sessions to help users reduce stress.
Care.fit: This is a healthcare branch providing doctor consultations and routine health checkups. It offers primary healthcare solutions to complete the wellness circle.
Cultsport: This brand sells premium sportswear, athletic shoes, and home gym equipment. You can buy smart treadmills and performance clothing directly from their app.

Marketing Strategy of CultFit

The company uses very smart marketing tactics to attract and keep customers. Their focus is always on digital presence and building a high brand value.

Celebrity partnership: Famous bollywood actor Hrithik Roshan helped build strong brand trust his HRX brand integration was a massive success for the company.
Free trials and discounts: Offering free trial classes encourages new users to join. It allows them to experience the premium service without any financial risk.
App gamification: The app uses fun features like an energy meter and workout streaks. This keeps users highly motivated to exercise daily and reduces dropouts.
Digital advertising: Currently Businesses focus on social media platforms like Instagram and YouTube. This helps them perfectly target young urban professionals.
Community events: Regular regional events and outdoor meetups deepen social bonds among members. This builds a loyal tribe around the brand.

Market Data of CultFit

Understanding the market environment is very important. The following table gives you a clear look at the market presence and industry data for the brand.

Market Metric	Current Status
Indian Industry Size (2025)	Rs. 16,200 crore
Expected Market Size (2030)	Rs. 37,700 crore
Expected Industry Growth	15% annual growth
Target Audience	Urban millennials and working professionals
Core Age Group	22 to 40 years old

Financial Analysis of CultFit

The financial performance shows a company that is growing its revenue while trying hard to reduce its losses. The company makes most of its money from core fitness subscriptions. This accounts for over 72 percent of their total revenue.

Below is the summary of the financial statements based on recent company reports.

Profit & Loss Statement (P&L)	FY’2024	FY’2025
Operating Revenue (In crore)	Rs. 927	Rs. 1,215.5
Total Income (In crore)	Rs. 1,027	Rs. 1,272
Total Expenses (In crore)	Rs. 1,563	Rs. 1,751.6
EBITDA Margin	-22.8%	-15.54%
Net Loss (In crore)	Rs. 535	Rs. 481

Key Performance Indicators

The data below is the key performance indicators for the success of a company.

Key Performance Indicator	Data Figure
Active Subscribers	Over 1.5 Million
Physical Centres	Over 600 Centres
App Users	Over 5 Million
Current Valuation	1.5 Billion Dollars

SWOT Analysis of CultFit

A detailed evaluation provides a clear picture of the market position of the brand. Here are the main points.

Strengths

Strong Brand image: CultFit is one of the most famous modern fitness brand in India.
Huge data advantage: data is the new king of market and having precise data of the consumer in fitness industry gives them edge over its competitor.
Diverse offerings: They offers various services like gyms, sportswear and healthy food, they cover the entire wellness.

Weaknesses

High operating costs: Running physical gyms, paying trainers, and developing technology increase the operating cost.
Consistent financial losses: Despite high revenue growth, the company still reports net losses every single year.
Premium pricing: The high cost of subscriptions makes it hard to attract lower income groups in smaller towns.

Opportunities

Expansion to smaller cities: Tier 2 and Tier 3 cities offer huge untapped markets for modern fitness centres.
Corporate wellness programs: Partnering with companies for employee health presents a great and steady revenue stream.
Growing health awareness: More Indians are focusing on preventive healthcare after the recent pandemic.

Threats

Intense competition: Nowadays even local gyms are getting modernised and started using their own mobile apps to grab the market share.
Economic slowdowns: Fitness subscriptions are considered as a luxury. Whenever inflation hits the pocket of user in India they cut this expense during tough financial times.
Retail competition: Selling sportswear is difficult because of massive global retail giants like Decathlon.

Read Also: Phonepe Case Study

Conclusion

The journey of this fitness brand is truly inspiring for everyone. They took a completely disorganized gym sector and turned it into a smooth and tech driven experience.While financial losses remain a challenge, the consistent growth in yearly revenue shows strong customer demand. With solid plans for future expansion into smaller cities, the company is moving in the right direction. The future looks very bright as more Indians embrace an active and healthy lifestyle.

If you are interested in tracking such financial statements, analyzing stocks, or applying for upcoming IPOs, Pocketful is a great platform for you. It offers a zero AMC Demat account and advanced charting tools to make your investment journey smooth.

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10	Zara Case Study

Frequently asked questions (FAQs)

What is the core Business Model of CultFit?
The companies main focus is to earn money through subscription model called Cultpass and by selling fitness products.
Who are the founders of CultFit?
Mukesh Bansal and Ankit Nagori founded the company in the year 2016.
Is CultFit a profitable company?
No, Currently, It reported a net loss of Rs 481 crore in FY25. However, its operating revenue is growing rapidly every year.
What products does the cultfit offer?
The companies mainline of products are physical gym, sportswear brand food delivery platform and online workout classes
Does cultfit have physical sportswear stores?
Yes, Cult.fit operates physical sportswear and fitness equipment stores under the Cult Store banner.

June 25, 2026

Difference Between Term Insurance and Life Insurance

Choosing the right insurance policy can be confusing. And when you are planning to select between term insurance vs life insurance, it can be even harder. But the bigger question here is which of these two plans is better for you? Or do you need to have both the plans to ensure you have a better planned portfolio?

To start with, both these plans are here to offer you financial protection. These work based on the premium and are there for a certain period of time. Term insurance is a pure life cover. Life insurance can come with investment plans as well.

Understanding the difference between life insurance and term insurance is the key here. Now, these two might look the same, but you still need to have a proper comparison to make the choice. So, read this guide to know the details and ensure you invest better.

What Is Term Insurance?

Term insurance is the simplest form of life insurance. It provides financial protection for a specific period. Now, in this policy, the policyholder pays the premium for the policy period. In case of the death of the policyholder, the entire Sum Assured (Death Benefit) is paid to the nominee.

If the policy holder survives the policy period, there is no payment at all for standard term policies. In contrast, the Term Return of Premium (TROP) policy will pay back the entire base premium that has been paid to the insurance company.

Since term insurance focuses purely on protection and does not include any investment component, it offers a high coverage amount at relatively affordable premiums. This makes it a popular choice among individuals looking to secure their family’s financial future.

What Is Life Insurance?

Life insurance is a broader category of insurance products designed to provide financial protection to the policyholder’s family. Depending on the type of plan, it may also include savings, investment, or wealth creation features alongside life cover.

Now, this is a life insurance, but many of these come with some or the other investment component. Some of the common types of policies that you should know here are as follows:

Whole life insurance
Endowment plans
Money-back policies
ULIPs
Term insurance plans

Difference Between Term Insurance And Life Insurance

Here is a quick snapshot of the difference between term insurance and life insurance. Understanding the key difference points can help you understand both plans well.

Basis	Term Insurance	Life Insurance
Meaning	A pure protection plan that provides financial cover for a specific period.	A broader category of insurance plans that provide life cover and may also include savings or investment benefits.
Primary Objective	Financial protection for dependents.	Financial protection, along with wealth creation or savings.
Premium	Lower premiums for higher coverage.	Higher premiums due to additional benefits.
Sum Assured	Generally higher for the same premium amount.	Usually lower compared to term insurance for the same premium.
Maturity Benefit	No maturity benefit in most plans.	Many plans offer maturity benefits if the policyholder survives the term.
Investment Component	Does not include any investment feature.	May include savings, bonuses, or investment-linked benefits.
Returns	No returns on survival in standard plans.	Potential returns depending on the type of policy.
Policy Term	Fixed tenure such as 10, 20, 30, or 40 years.	Can be fixed-term or lifelong, depending on the policy.
Death Benefit	Paid to nominees if the insured dies during the policy term.	Paid to nominees as per policy terms.
Flexibility	Primarily focused on life cover with optional riders.	May offer loan facilities, withdrawals, and bonus benefits.
Risk Coverage	Higher risk coverage at a lower cost.	Lower risk coverage due to the savings or investment component.
Suitable For	Individuals seeking affordable and substantial life cover.	Individuals looking for insurance along with savings or wealth accumulation.

Factors To Consider Before Choosing Between Term Insurance And Life Insurance

When it comes to selecting the policy, there are various things to consider. Knowing the term insurance and life insurance difference is just the start. Some of the key factors to know are:

Financial Goals: Consider whether your priority is pure protection or a combination of protection and savings. This will significantly influence the type of policy that suits your needs.
Income And Budget: Term insurance generally requires lower premiums, while life insurance plans may involve a higher financial commitment because of additional benefits.
Existing Financial Liabilities: Individuals with home loans, personal loans, or dependents may prioritise higher coverage through term insurance.
Risk Appetite: Investors comfortable with market-linked products may explore certain life insurance options, while conservative investors may prefer traditional plans.
Family Responsibilities: The number of dependents and future financial obligations should be considered when determining the type and amount of coverage required.

Essential Insurance Terms You Must Know

Premium: The normal amount you pay to maintain your insurance policy.
Sum Assured: It is the amount that is payable to your nominee, in case of an insured incident.
Nominee: A person who is entitled to get the insurance benefits in case of death of the policyholder.
Policy Term: This is the period of time your insurance coverage is in effect.
Death Benefit: Amount payable to the nominee on death of the policyholder within the policy term.
Maturity Benefit: Amount payable to the policyholder on survival of the policy period.
Rider: Optional add-on to enhance your protection, like critical illness or accidental death cover.
Claim Settlement Ratio (CSR): The ratio of total claims settled by an insurer to the total claims received by it, which reflects its reliability.

Term Insurance Vs Life Insurance: Which One Should You Choose?

The choice between term insurance and life insurance is based on various factors. Knowing all these is important to make the right call. These factors are:

If Your Goal Is Financial Protection: If your primary objective is to ensure that your family remains financially secure in your absence, term insurance is often the preferred option. It offers a higher sum assured at a lower premium, making it easier to provide adequate coverage.
If You Want A Maturity Benefit: Individuals who prefer receiving a lump sum amount at the end of the policy tenure may find life insurance more suitable. Many life insurance plans provide maturity benefits along with life cover.
If You Have A Limited Budget: Term insurance is generally a better choice for budget-conscious individuals. Since it focuses solely on protection, premiums are significantly lower than most traditional life insurance plans.
If You Want Insurance And Savings Together: Life insurance plans can be suitable for those who want to combine insurance with long-term savings or investment benefits. These policies help create a financial corpus while providing life cover.
If You Have Outstanding Financial Liabilities: Individuals with home loans, personal loans, or dependents often prefer term insurance because it provides substantial coverage that can help protect their family’s financial stability.

Should You Have Both Term Insurance And Life Insurance?

Many people view term insurance and life insurance as an either-or decision. However, depending on your financial goals, it may be possible to benefit from both. Since the two products serve different purposes, some individuals choose to use them together as part of their overall financial plan.

A term insurance plan can provide substantial financial protection for your family at a relatively low cost. At the same time, a life insurance policy may help support long-term savings or wealth creation goals through maturity benefits and other features. Combining both can allow you to address protection and savings needs separately.

However, this approach may not be suitable for everyone. Before purchasing multiple policies, consider the following factors.

Your Financial Responsibilities: Individuals with dependents, outstanding loans, or significant future obligations need better cover. This is where they may prioritise adequate life cover through term insurance while using a life insurance policy for long-term financial planning.
Your Budget: Maintaining multiple policies requires regular premium payments. While this is true, it is important that you plan well. This is where you wou;ld need to consider the budget as well.
Your Investment Strategy: Some investors prefer separating insurance and investments by purchasing term insurance and investing the remaining amount elsewhere. Others may prefer the convenience of having a life insurance policy that includes savings benefits.
Your Long-Term Goals: If your objective is both financial protection and wealth accumulation, holding both policies may help address different requirements through separate products.
Existing Insurance Coverage: Before buying another policy, review your existing coverage to determine whether there are any gaps in protection or financial planning that need to be addressed.

Read Also: LIC Case Study

Conclusion

Understanding the difference between term insurance and life insurance is key to planning your future well. Many people still today do not own a term insurance policy. While this is a simple life cover, it is an important cover which can help your family later on.

This is why it is important that you have a proper plan, and if your budget fits, have both policies. This is where you would need the support of the advisor as well. Proper guidance and knowledge will help you secure your policy well.

With Pocketful, you can invest in stocks, mutual funds, ETFs, and other investment options through a seamless platform designed to help you achieve your financial goals with confidence.

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Frequently Asked Questions (FAQs)

Which Is Better: Term Insurance Or Life Insurance?
Neither policy is universally better. Term insurance is generally suitable for individuals seeking higher life cover at a lower premium, while life insurance may be preferred by those looking for both insurance protection and savings benefits.
Can I Have Both Term Insurance And Life Insurance?
Yes, you can hold both policies simultaneously. Many individuals use term insurance for substantial life cover and maintain a life insurance policy to support long-term savings or wealth creation goals.
Why Is Term Insurance Cheaper Than Life Insurance?
Term insurance provides pure life cover without including savings or investment features. As a result, insurers can offer higher coverage amounts at comparatively lower premiums.
What Happens If I Survive A Term Insurance Policy?
In most standard term insurance plans, no maturity benefit is paid if the policyholder survives the policy tenure. The coverage ends once the policy term is completed.
How Much Term Insurance Cover Should I Buy?
The ideal coverage amount depends on your income, financial liabilities, dependents, and future goals. Many experts recommend choosing a sum assured that can adequately replace your income and support your family’s long-term financial needs.

June 25, 2026

PharmaEasy Case Study: Business Model, Revenue Model & Growth Story

Earlier, if you were in need of some medicines, you needed to visit multiple chemist stores to identify which pharmacy has it in stock. Now, due to digital evolution, healthcare services are easily available with a few taps of your mobile phone. And this was made possible by the “PharmaEasy”.

In this case study, we will give you an overview of PharmaEasy and how it evolved as one of the leading digital healthcare platforms in India.

PharmaEasy Company Overview

PharmaEasy is a health tech platform developed in India offering medicine delivery, diagnostic tests, and other healthcare products. The company was founded in 2015 by Dharmil Sheth, Dhaval Shah, and Hardik Dedhia. The parent company of PharmaEasy is API Holdings. PharmaEasy offers users the ability to upload their doctor’s prescription and order medicines online. They can also book lab tests and purchase other healthcare products. It offers its services through a mobile app and website and simplifies healthcare for Indians. The company has acquired Thyrocare Technologies Limited to expand their reach. PharmaEasy has its headquarters situated in Mumbai.

Key Metric of Pharmaeasy

Particulars	Details
Company Name	PharmaEasy
Founded In	2015
Founded By	Dharmil Sheth, Dhaval Shah, and Hardik Dedhia
Parent Company	API Holdings
Headoffice	Mumbai
Sector/Industry	Online Medicine
Available Platform	Mobile App & Website

PharmaEasy Business Model

The business model of PharmaEasy can be divided into three different categories:

Medicine Delivery: The core business of the company is to deliver medicines online to its customers. And the process to get the medicine is very simple; the customer just needs to upload their prescription on the application and order medicine from it. The company manages order processing, inventory management, and logistics. It offers doorstep delivery convenience for their customer and offers a discount through these services, which attracts a large number of customers.
Lab Tests: A user can, along with the medicines, also book diagnostic or lab tests at their home. The lab directly sends its executive to the customer’s address to collect samples, and the reports of the test are generally sent to the customer’s email and mobile number within the same day, and reports are also available on the mobile app. This segment of the business gained significant popularity during the COVID period and increased the overall revenue of the company.
Healthcare Products: Along with the medicines and lab tests, PharmaEasy sells various healthcare and wellness products such as vitamins, personal care products, medical equipment, healthcare drinks, etc. These healthcare products increase the average order value, and along with this it also encourages repeat purchases.
Acquisition: The company has acquired Thyrocare Technologies, which has strengthened its position in the diagnosis business. It has created a more comprehensive platform, including both medicine delivery and diagnostic services under one roof.
B2B Business Model: The company also has a B2B division through which it offers to sell medicines and consumables directly to hospitals, nursing homes, and chemists. In this model, they primarily work on the lower margins and the bulk orders. In the B2B segment, PharmaEasy also offers credit cycles to the consumer.

Revenue Model of PharmaEasy

The company gets their revenue from different sources, which are mentioned below:

Sale of Medicines: The company gets its primary source of revenue from selling medicines online. The company gets recurring demand for medicine related to chronic diseases such as diabetes, blood pressure, and heart-related ailments, etc.
Diagnostic: A major source of a company’s revenue comes from lab and diagnostic services offered by the pharmaeasy. The diagnostic segment offers higher margins than the sales of medicines. Also, the preventive healthcare checkups are increasing in India, which acts as a long-term growth potential for the company.
Wellness Products: Pharameasy also sells various healthcare products, including medical devices, health monitoring equipment, etc. These products generally have higher profit margins when compared to prescription medicines.
Convenience Charges: Although the company offers free delivery on certain products and on orders of a minimum value. But if the user’s order value is less than the minimum limit, a delivery charge and the convenience fee are also applicable to the order.
Advertisement Revenue: Millions of users come on the PharmaEasy platform every month is search of healthcare products. Hence, the company charges a sponsorship fee from the companies who wishes to feature their listing. It also launches a promotional campaign and in-app advertisement.
Subscription: The company also charges a subscription fee from their customers and offers them priority services, exclusive discounts, etc. Although it cannot be considered a major source of revenue.

Read Also: Astro Talk Case Study

PharmaEasy Marketing Strategy

The customer-focused marketing strategy of PharmaEasy is the key reason behind the success of the application:

Discount Focused Marketing: The healthcare expenses are increasing regularly, and the company identified it as an opportunity and focused on acquiring customers by offering them a discount on medicines.
Digital Marketing: The company is mainly dependent on digital marketing channels such as Google Ads, social media marketing, SEO, etc., to acquire customers.
Trust: PharmaEasy gained the trust of the users by offering them prescription verification, genuine medicines, timely delivery, etc. This helps in gaining customer confidence and building credibility.
Brand Awareness: The company is spreading their brand awareness through celebrity marketing. It has collaborated with various celebrities to enhance their brand awareness.

Financial Metrics of PharmaEasy

The key financial metrics of PharmaEasy are as follows:

Particulars	FY 25
Operating Revenue	INR 5,872 Crores
Total Expenses	INR 7,208.5 Crores
Net Loss	INR 1,572.3 Crores
Employee Benefit Expense	INR 908.4 Crores
Finance Costs	INR 506 Crores
Depreciation & Amortization	INR 168.9 Crores
EBITDA Loss	INR 553.5 Crores
EBITDA Margin	-15.71%
ROCE	-13.91%

( Above data is sourced from Entrakr.com as on 31st March 2025)

The company has reported a revenue of INR 5872 crores for FY 25; despite this much revenue, the company has posted a net loss of INR 1572.3 crores. This happens because of ongoing challenges in the online PharmaEasy sector. The total expenses of the company stood at around 7208.5 crore INR. Employee benefit cost is around 908.4 crore INR, whereas its finance cost is INR 506 crore. As the company’s EBITDA margin is around -15.71%, this indicates that the company is facing challenges in managing its operations. However, the company is making continuous efforts to reduce its losses

Market Data of PharmaEasy

Particulars	Metric
Number of Employees	More than 4000
Operating In	India Only
Key Institutional Investors	360 One and Claypond Capital, Prosus, Ranjan Pai MEMG Family Office.
Total Application Download	10 Million (Google Play)

The Rise of PharmaEasy in the Healthcare Sector

The healthcare industry of India has evolved over time exponentially overtime. This evolution is led by various factors such as changing consumer behaviour, digital innovation, increasing technological innovation, etc. In this transformation, PharmaEasy has emerged as a key player in the healthcare sector and is making healthcare services such as diagnostic, medicines, etc., easily accessible to consumers. The key focus of the company is on providing affordable services to its users.

The key contribution to the company’s growth is made by the COVID pandemic, as people tend to be more aware of health. On the journey of becoming a major player, it has acquired Thyrocare Technologies. This strategic move makes the company an established player in the healthcare sector.

SWOT Analysis of PharmaEasy

Strengths

Diversified Revenue Source: The company has a diversified revenue source. This helps the company have a stable source of revenue. The company’s revenue source is from B2C pharmacy, B2B distribution (Retallio), and diagnostic services from Thyrocare.
Vast Distribution Network: The company has a vast distribution network of more than 100000 partner pharmacies that help the company serve customers across the country.
Large Customer Base: PharmaEasy has a large customer base of around 25 million registered users on its platform. This helps the company in securing repetitive orders from such customers.

Weakness

Consistent Loss: Over the last several years, the company has consistently posted losses. Hence, they are facing operational issues in achieving profit.
Regulatory Compliance: The company is operating in a sector which has very strict compliance. Therefore, any unfavourable changes in the regulation by the government can significantly impact the company’s profitability.
Dependency on Domestic Market: The company has to face higher dependency on the domestic market for revenue, because they do not have any international operations. Therefore, due to limited geographical presence, it has to face challenges in expanding its revenue source.

Opportunities

Growing Sector: The company is operating in a sector which can be considered one of the fastest-growing sectors of the economy. The Indian healthcare market is in an expansion phase due to an increase in internet penetration.
Cost-Efficient Business Model: The company is primarily operating through a mobile application, which is an asset-light business model. Therefore, it can help the company in reducing costs and increase their profit margins.
Cross-selling: The company has a vast opportunity in cross-selling other products. They can leverage this as it has a large customer base, and they can easily promote diagnostics, insurance products, and other wellness solutions.

Threat

Competition: The healthcare industry is facing intense competition from other established players. The company’s rivals, such as 1mg, Netmeds, etc., are using aggressive pricing techniques to stay ahead in the competition.
Loss of Investor: Due to continuous losses posted by the company, the investors might lose interest in this company. This can limit the infusion of fresh capital and can impact the company’s valuation.
Margin: PharmaEasy operates on a very thin profit margin. The increasing cost related to employee expenses, warehousing, logistics, etc., can further impact the profit margin of the company.

Read Also: Reliance Jio Case Study

Conclusion

On a concluding note, PharmaEasy started with a small idea to make healthcare services more accessible. Generally, people tend to buy medicines from the local medical stores and for a healthcare checkup, they need to visit the diagnostic centres. Now this can be done easily through a few taps on a mobile phone using the PharmaEasy app. The app allows you to buy medicines, book diagnostic tests, and purchase other healthcare products. However, the company is facing certain challenges related to its financial performance. It has posted continuous losses despite a rise in revenue. However, with the rise of the healthcare sector in India, PharmaEasy has a strong potential for growth in the near future.

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Frequently Asked Questions (FAQs)

PharmaEasy was founded in which year?
Phramaeasy was founded in 2015 by three individuals named Dharmil Sheth, Dhaval Shah, and Hardik Dedhia.
How does PharmaEasy earn money?
PharmaEasy has different sources of revenue, which include the sale of medicines and healthcare products, diagnostic tests, and revenue in the form of commission from partnered pharmacies.
Is PharmaEasy a profitable company?
No, PharmaEasy is not a profitable company; it has posted a total revenue of INR 5872 Crores. Despite this, the company has incurred a loss of 1516.8 Crores INR in FY 2025.
When did PharmaEasy acquire Thyrocare Technologies?
Thyrocare Technologies was acquired by PharmaEasy in June 2021 for INR 4546 Crores. This acquisition was made with the objective of strengthening its market position in the diagnostic sector.
Is PharmaEasy is a listed company?
No, PhamraEasy is not a listed company. However, the company is expected to come up with an IPO in the next few years. However, it filed for IPO in 2021 but later withdrew its application.

June 24, 2026

Difference Between Sensex and Nifty

If you are switching channels and at some point between the cricket highlights and the weather forecast, a news anchor pops up and says, “Sensex ends the day 450 points higher, Nifty settles just above 24,000″, what would have been your reaction?” Most of the time, those watching would either know the meaning and leave the subject, or just change channels.

If you have heard these words a hundred times but never understood what separates one from the other, today’s blog is for you.

Sensex and Nifty come from different exchanges, track different sets of companies, and are used differently by different kinds of market participants. They usually move together, sure. But they are not the same.

What Is an Index?

India has over 5,000+ companies listed across its stock exchanges. Nobody can track all of them at once to form a view on “how the market is doing.” So what we do instead is pick a representative group of companies, and use that as a benchmark for the market. This benchmark is known as a stock market index.

There are broadly two most used Indices in India: Sensex & Nifty

What Are Sensex and Nifty?

SENSEX

It is the index of the Bombay Stock Exchange, BSE. It was launched in 1986, making it the oldest index in India. The base year was extended back to 1978-79, when the value was 100.

In the past four and a half decades, Indian markets have evolved from 100 to 75,000.

Sensex tracks 30 companies. These are large, well-established businesses from various sectors, selected by BSE based on how big they are, how frequently their shares are traded, and how well they represent the broader economy.

Every few months, BSE reviews the composition. A company that does not fit the pre-decided criteria might get replaced by one that has grown.

How is Sensex Calculated?

Sensex follows the same logic of free-float market capitalisation, but with one difference in the final step.

Instead of dividing by the base market capitalisation and multiplying by 1000, the Sensex divides the free-float market capitalisation of its 30 companies by an index divisor of 100.

Free-float Market Capitalisation = Market Capitalisation * Free-float Factor

Index Value = Free-float Market Capitalisation / Index Divisor

NIFTY

Nifty is the benchmark index of the National Stock Exchange NSE. Its full name is Nifty 50. The word “Nifty” is actually a combination of “National” and “Fifty”, named after the 50 companies it tracks.

It was launched in 1996, about a decade after Sensex, with a base value of 1,000 (starting November 1995). NSE itself was established in 1992, despite being the exchange that was founded much later, it has grown to become the world’s largest derivatives exchange by contract volume.

You will find everything from Asian Paints and Bajaj Finance to Maruti, Wipro, and Nestle India.

How is Nifty Calculated?

Since June, 2009, the NIFTY 50 has been calculated using the Free-Float Market Capitalisation Weighted Method.

Before you calculate the index, you need to understand the free-float.

Market Cap = Total Shares Outstanding * Current Market Price

This excludes shares held by promoters, government holdings, etc. It only counts the shares that are actively available for trading by the general public.

Free-float Factor (IWF): percentage of shares available to the public

Free-float market Cap = Total Market Cap * Free Float Factor

Example:

A company has a total market cap of ₹10,000 crores, but promoters hold 60% of the shares and only 40% is for the public.

Free-float Factor = 40% or 0.40

Free-float Market Cap = ₹10,000 * 0.40 = ₹4,000 Crore

Now, calculate the index value.

Index Value = (Current Market Value / Base Market Capital) * 1000

Table of Differences: Nifty vs. Sensex

S. No	Parameter	Nifty	Sensex
1	Full Form	National + Fifty	Sensitive + Index
2	Also Known As	Nifty 50, S&P CNX Fifty	S&P BSE Sensex
3	Owned & Managed By	IISL (NSE subsidiary)	Bombay Stock Exchange
4	Base Value	1,000	100
5	Base Period	3rd November, 1995	1978 – 79
6	Number of Stocks	50	30
7	Sectors Covered	24	13

Where They Actually Different in Practice

The exchange they belong to: Sensex belongs to BSE, founded in 1875, Asia’s oldest stock exchange. Nifty belongs to NSE, established in 1992, but built on a stronger technology infrastructure from day one. Both are regulated by SEBI.
The base values: A lot of people get confused seeing Sensex at 75,000 and Nifty at 22,700 and wondering why one looks so much higher. It is simply because they started from different points. Sensex started at 100. Nifty started at 1,000.
F&O trading: NSE absolutely dominates India’s derivatives market. Nifty options, weekly and monthly, are among the most traded financial contracts anywhere in the world.

The liquidity, the strike prices available, the ease of execution, everything about Nifty F&O is built for scale.

BSE has its own derivatives segment, but it does not come close to NSE in terms of volume or participation.

Conclusion

Sensex and Nifty are not competing with each other, they are just two different lenses on the same market. For everyday investors and traders in India, both matter. The more you interact with the markets through mutual funds, through direct equity or through F&O, the more naturally you will develop a sense of when to look at one instead of the other.

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4	Swing Trading vs Day Trading: Which Strategy Is Right For You?
5	Difference between Margin Trading and Leverage Trading

Frequently Asked Question (FAQs)

What should Indian investors follow: Sensex or Nifty?
Both give you a fair picture. However, for the majority of investors, the Nifty 50 is the more commonly referenced benchmark in India.
F&O traders should follow which index?
Traders should follow Nifty, without a doubt. NSE dominates India’s entire derivatives market.
Can I invest directly in Sensex or Nifty?
Not directly, you cannot buy an index like a stock. But you can invest in index mutual funds or ETFs that track the Sensex or Nifty 50. These funds hold all the companies in the index in the same proportion, at a very low cost.
Q4. Do the companies in Sensex and Nifty change?
Both BSE and NSE review their index compositions periodically, usually every six months. A company that no longer meets the eligibility criteria gets replaced by one that does.
My mutual fund mentions the Nifty 50 as a benchmark. What does that mean?
It means your fund’s performance is being compared against how the Nifty 50 index performed over the same period. If your fund gave 15% returns and the Nifty 50 gave 12%, your fund manager added value. If it’s the other way around, the fund underperformed the market.

June 24, 2026

What Is a Brokerage Account?

Today, you can trade in shares easily by opening an account online. However, before you make your first investment, there is one term you are almost certain to come across: brokerage account.

For many beginners, this is also where the confusion starts. Is it the same as a Demat account? Does it store your shares? Is it only meant for traders? These are common questions, and understanding what is a brokerage account can help clear them up before you begin investing.

A brokerage account is your connection to the stock market. It allows you to buy and sell investments through a registered broker while keeping track of your transactions, available funds, and portfolio. In this guide, we’ll explain how it works, why you need one, the different types available, and how to choose the right account for your investment journey.

What Is a Brokerage Account?

A brokerage account is an investment account. It is opened with a registered stockbroker that allows you to buy and sell financial securities. The broker acts as the intermediary to complete the trades properly.

If you are wondering what is a brokerage account?, think of it as your gateway to the stock market. Besides placing buy and sell orders, it also helps you manage your investments by displaying your portfolio, available balance, transaction history, and applicable charges in one place.

The brokerage account definition is quite simple. It is an account that enables investors to access financial markets and manage their investments through a registered broker. Whether you are investing for long-term wealth creation or trading regularly, this account forms the foundation of your investing journey.

How Does a Brokerage Account Work?

Once your brokerage account is active, investing becomes a straightforward process. Every time you decide to buy or sell a security, your broker acts as the bridge between you and the stock exchange.

Open a Brokerage Account: The first step is to open a brokerage account. You must do this with an SEBI-registered broker. During the application process, you complete your KYC verification, submit the required documents, and link your bank account. Once your application is approved, your account is activated and ready for investing.
Add Funds to Your Account: Before you can buy any security, you need to transfer money. This will be from your linked bank account to your brokerage account. This amount becomes your available investment balance. This is the amount you can use to purchase stocks, ETFs, mutual funds, or other securities.
Place Your Investment Order: After adding funds, you can browse the available securities on your broker’s trading platform. Once you decide what you want to invest in, enter the quantity and place your buy or sell order.
Your Broker Sends the Order to the Stock Exchange: Once you confirm your order, your broker forwards it to the relevant stock exchange, such as the NSE or BSE. The exchange then searches for a matching buyer or seller based on the order details and current market conditions.
The Trade Is Executed: When a matching order is found, the transaction is completed. Your broker immediately updates the order status and sends you a confirmation that your trade has been successfully executed.
Settlement Takes Place: After the trade is executed, the settlement process begins. If you have purchased securities, they are credited to your Demat account, and the payment is deducted from your brokerage account. If you have sold securities, the sale proceeds are credited back after settlement. The securities are kept electronically with depositories like CDSL and NSDL.
Track Your Investments: Once the transaction is complete, your brokerage account automatically updates your portfolio. You can view your holdings, available balance, transaction history, realised gains or losses, and account statements whenever required.

Read Also: What is a Stock Broker?

Types of Brokerage Accounts

It is important to know that every trader has different needs when it comes to opening a brokerage account. There will be people who can manage everything on their own, and there will be traders who need support.

This is why you must know the options in your hand before you actually finalise one. These are as follows:

Type	Suitable For	Key Feature
Cash Account	Beginners	Invest using available funds only
Margin Account	Active traders	Trade using borrowed funds
Discount Brokerage Account	Self-directed investors	Lower brokerage charges with online trading & Investing.
Full-Service Brokerage Account	Investors seeking guidance	Research, advisory services, and relationship managers
Joint Brokerage Account	Families or business partners	Shared ownership of investments

While all the options are great, the choice is largely based on the investor’s needs. You must consider your goals and experience. Also, consider the level of support that you would need when trading.

How to Choose the Right Brokerage Account

Choosing the right brokerage account can help you greatly with your trading as well. This will ensure that you do not just trade right but also will ensure that all your trades end with positive outcomes. So, here are a few things to know:

Compare the Charges: Check the brokerage, annual maintenance charges (AMC), and other applicable fees. Understanding the complete cost helps you avoid unexpected expenses later.
Check the Investment Options: Choose a broker who can help you better. See if you can trade in multiple assets. If you can do all these using a single platform that’s even better.
Evaluate the Trading Platform: The platform should be simple, fast, and reliable. You should look for the features that you can gain with the platform. This will be very important for smooth running.
Look for Research and Support: Research reports, educational resources, and responsive customer support for the best. This will ensure that the trades are supported and you have all the details you need.
Verify the Broker’s Registration: It is important that you open the account with an SEBI-registered broker only. This will ensure that the rules are being followed and everything is legit in nature.

Importance of Choosing the Right Brokerage Account

Your brokerage account is where every investment begins. The right account can make investing simpler and can help you greatly. Here are a few reasons why selecting the right brokerage account matters.

Reduces Your Overall Investment Costs: Brokerage charges, annual maintenance fees, and other transaction costs are all that impact your returns. You need to know all these in advance to ensure you understand the trade-offs. Choosing an account with transparent pricing helps you avoid unnecessary expenses.
Makes Investing More Convenient: A user-friendly trading platform can help simplify trading. You can manage your portfolio and complete all tracking from one place. This will save time and can avoid any kind of issues.
Gives Access to Multiple Investment Options: A good brokerage account can help you trade in multiple assets. These can be stocks, ETFs, mutual funds, IPOs, bonds, and other securities. You can do all this through a single platform, making portfolio management much easier.
Provides Research and Investment Tools: Many brokers can help you with reports, insights, and suggestions. They can guide you on all the conditions that are there and which need to be worked upon, and which you can avoid.
Ensures Better Security and Support: A reliable broker follows regulatory guidelines and offers secure transactions along with responsive customer support. This gives you greater confidence while investing and managing your account.

How to Open a Brokerage Account With Pocketful

Opening a brokerage account with Pocketful is a simple online process. You can complete the entire process online. The steps that you would need to follow are:

Sign Up on Pocketful: Visit the Pocketful website or download the mobile app. Register using your mobile number and email address to begin the account opening process.
Complete Your KYC: Enter your personal details. Here, you would complete the online KYC verification. Keep your PAN card, Aadhaar card, and other required documents ready for a smooth application process.
Link Your Bank Account: Add your bank account details so you can transfer funds for investing and receive money when you sell your investments.
Submit Your Application: Review the information you’ve entered. Once checked, submit your application. Pocketful will verify your details and process your request.
Start Investing: Let your brokerage account get activated. Now, you can log in to your Pocketful account. All you need to do is add funds and begin investing in no time.

Conclusion

A brokerage account is the foundation of your investment journey. It allows you to invest and supports you in your trading journey. But when you finalise the account, you must ensure that the platform is right for you.

One such platform is Pocketful. You can get access to stocks, ETFs, mutual funds, IPOs, and more through a seamless digital platform. It is perfect for both new and experienced investors to take their next step with confidence.

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Frequently Asked Questions (FAQs)

What is a brokerage account?
A brokerage account is an investment account. It is opened with a registered broker. It allows you to buy, sell, and manage financial securities such as stocks, ETFs, mutual funds, and bonds.
Is a brokerage account different from a Demat account?
Yes. A brokerage account is used to place and manage investment transactions. On the other hand, a Demat account stores your purchased securities electronically.
Can I open more than one brokerage account?
Yes. You can open multiple brokerage accounts with different brokers. You can compare the options, trade where you find better features, and manage them.
Can I invest in mutual funds through a brokerage account?
Yes. Many brokers allow you to invest in mutual funds. You can do this along with stocks, ETFs, IPOs, bonds, and other investment products through a single brokerage account.
Can I open a brokerage account online?
Yes. Most brokers, including Pocketful, offer a completely online account opening process. You can complete your KYC digitally, submit the required documents, and start investing once your account is activated.

June 23, 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.

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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

PhonePe Case Study: How India’s Largest UPI App Makes Money

It’s impossible to talk about digital payments in India without bringing up PhonePe. What started as a basic UPI app has now grown into one of the biggest fintech powerhouses in the country. Backed by a massive user base, millions of merchants, and the lion’s share of the UPI market, they didn’t just stop at money transfers they’ve successfully broken into insurance, investments, and wealth management. In this PhonePe case study, we’ll break down the PhonePe business model, look at the marketing strategy of PhonePe, dive into the financials analysis of PhonePe, and map out a SWOT analysis of PhonePe to see what really drives their massive success.

PhonePe Company Overview

Today, whenever someone has to send cash or scan a QR code to pay, PhonePe is usually the very first app they think of. Sameer Nigam, Rahul Chari, and Burzin Engineer started the company back in December 2015, and they rolled out their signature UPI platform just a few months later in August 2016.

At the start, the whole setup was just meant for basic digital transactions. But now, you can use the app for pretty much everything mobile recharges, utility bills, buying insurance, or putting money into investments. Because of this massive expansion, it has turned from a simple payment tool into a daily financial necessity for millions of users.

PhonePe at a Glance

Particulars	Details
Founded	December 2015
Founders	Sameer Nigam, Rahul Chari, Burzin Engineer
Headquarters	Bengaluru, Karnataka, India
Parent Company	Walmart
Registered Users	700+ Million (as on April 29, 2025)
Merchant Partners	50+ Million (as on April 28, 2026)
UPI Market Share	Approximately 45%-48%
Core Services	UPI Payments, Bill Payments, Insurance, Lending, Investments, Wealth Management
Daily Transactions	330+ Million Transactions as of early 2025
Business Type	Fintech & Digital Financial Services

The Story Behind PhonePe

PhonePe’s massive growth wasn’t just luck; it came down to playing the right cards at the right moment. This is exactly how a tiny startup pushed its way up to dominate India’s entire fintech market.

The idea originated at Flipkart: The core team was actually pulling shifts at Flipkart when they saw how messy and broken digital checkouts were for normal shoppers. PhonePe came to life because they just wanted to clear up that exact headache.
A major bet on UPI: Back then, almost every tech company was busy burning cash on digital wallets. PhonePe did something different; they skipped wallets entirely and put all their chips on UPI. That single gamble became their ultimate superpower.
Acquisition by Flipkart: Flipkart bought out PhonePe back in 2016. This single move gave the small startup the huge cash flow and ready-made user base they desperately needed to scale up instantly.
Benefiting from demonetization: When the note ban hit late in 2016, hard cash disappeared and online payments just went crazy. Since PhonePe already had a working app live, they easily captured millions of stuck users looking for an alternative.
Gradual business expansion: They never wanted to just stick to simple money transfers. Slowly, they rolled out insurance, mutual funds, and other wealth tools, completely turning a basic payment app into a massive, full-scale financial hub.

PhonePe Growth Journey Timeline of Key Milestones

Year	Key Milestone
2015	Sameer Nigam, Rahul Chari, and Burzin Engineer team up to start PhonePe.
2016	Flipkart acquired PhonePe in April 2016. The UPI-based digital payments app was officially launched in August 2016, following the acquisition.
2017	The number of app downloads has crossed the 10 million mark, driven by a massive surge in usage.
2018	The team starts pushing hard into offline markets with QR codes for local merchants.
2019	Expansion begins with new launches in insurance, gold buying, and micro-investments.
2020	PhonePe cements its spot at the top, leading India in total UPI transaction volumes.
2021	The platform hits a massive milestone, crossing 300 million registered users.
2022	A major corporate reshuffle takes place as they move their official base from Singapore back to India.
2023	They launched Share.Market to seriously scale up their wealth and investment ecosystem.
2024	Financials look strong with a massive jump in revenue and heavy cuts in overall losses.
2025	Total revenue cruises past ₹7,000 crore while internal talks for an upcoming IPO pick up steam.
2026	The focus officially shifts beyond just payments into high-growth areas like lending, insurance, and wealth management.

Industry Overview India’s Digital Payments Revolution

To really get why PhonePe is so huge, you have to look at India’s digital payments space. Over the last few years, UPI has completely flipped the script on how everyday people handle cash and make daily transactions. From tea stalls to large showrooms, payments via QR codes are being made almost everywhere.

UPI Changed the Landscape: By the end of 2025, UPI was processing over 18 billion transactions per month. This demonstrates that UPI has evolved from a mere payment option into an everyday necessity.
Rapidly Growing Digital Market: Affordable internet and the increasing accessibility of smartphones have taken digital payments to villages and small towns. This is why India has emerged as one of the world’s largest digital payment markets.

Read Also: NSE Case Study

Platform	Market Share
PhonePe	45%
Google Pay	37%
Paytm	8%
Others	10%

PhonePe Business Model Explained

Leveraging its massive user base, PhonePe has built an ecosystem where multiple financial services are accessible through a single app. Consequently, the company’s revenue is not solely dependent on payments.

Merchant Solutions: The company provides services such as QR codes, Soundboxes, and payment gateways to merchants and businesses. This constitutes one of PhonePe’s key revenue streams.
Insurance Distribution: PhonePe offers policies for health, vehicle, and travel insurance on its platform, earning commissions on the sale of these products.
Lending Services: By partnering with various financial institutions, the company offers personal loans and other credit products, generating additional revenue.
Wealth & Investments: PhonePe has also expanded its presence in the investment sector. Through platforms like Share.Market and other investment services, the company is attracting new customers.
Business Technology Services: PhonePe also generates revenue from the B2B segment by providing payment processing and digital payment infrastructure to large enterprises.
Diversified Revenue Model: A key strength of PhonePe is that it has evolved beyond being just a payment app to establish multiple revenue streams. This is why its business model appears robust for the long term.

Marketing Strategy of PhonePe

From the very beginning, PhonePe did not limit its marketing efforts to mere advertising. The company’s key strategy was to ensure PhonePe was visible wherever payments took place; consequently, it invested heavily in building an offline merchant network alongside its online campaigns.

UPI-First Approach: While Paytm was focusing on the wallet model, PhonePe made UPI its core product. Later, the company reaped the biggest benefits from the massive surge in UPI adoption.
The Flipkart Advantage: New startups often spend years marketing just to acquire users, but PhonePe benefited from the support of Flipkart’s existing customer ecosystem. This facilitated easier initial adoption for the company.
QR Code Visibility: Today, PhonePe’s QR codes are visible everywhere, from local grocery stores to restaurants. These served not just as payment tools but also as a means of free brand promotion for the company.
Bharat-Focused Expansion: The company realized early on that the next phase of growth would come from smaller towns rather than metro cities. As a result, significant emphasis was placed on regional languages and onboarding local merchants.
Beyond Payments: PhonePe’s strategy went beyond merely increasing transaction volumes. Once the user base had grown, the company began generating additional revenue from that same audience by launching products such as insurance, investment services, and Share.Market.

Financial Analysis of PhonePe

A look at PhonePe’s numbers shows a clear shift in strategy: they are moving away from just chasing new users and are now focused on making real money and cutting down their losses. FY24 turned out to be a massive year for the company, showing a huge jump in revenue and a much healthier financial balance sheet.

1. Revenue Crossed ₹5,000 Crore

PhonePe’s consolidated revenue stood at ₹5,064 crore in FY24, marking an increase of approximately 74% compared to ₹2,914 crore in FY23. This represented one of the strongest annual growth figures in the company’s history.

Financial Year	Revenue (₹ Crore)
FY21	689.6
FY22	1,646
FY23	2,914
FY24	5,064
FY25	7,115

2. Losses Are Narrowing

While PhonePe hasn’t fully crossed into the green yet, they are successfully plugging the leaks. Their consolidated net loss dropped significantly to ₹1,996 crore in FY24, down from a heavy ₹2,795 crore loss the year before.

3. Adjusted Profit Turned Positive

The biggest highlight of FY24 was their adjusted PAT (Profit After Tax). Once you take out the one-time ESOP (employee stock options) costs, the company actually made a profit of ₹197 crore. To put that in perspective, they lost ₹738 crore on the same basis in FY23.

4. Revenue Sources Are Expanding

PhonePe used to rely almost entirely on money transfers and basic payments to make a buck. Today, they have diversified heavily. Money is now rolling in from brand-new avenues like app advertisements, insurance sales, mutual funds, digital lending, and subscriptions from those soundboxes and merchant devices you see at shops.

5. Strong Long-Term Growth

If you look at the bigger picture, PhonePe’s operational revenue has exploded from just ₹184 crore to ₹5,064 crore in a five-year span. That works out to a mind-boggling CAGR of around 94% a growth speed that almost no other major player in the Indian fintech space has managed to match.

SWOT Analysis of PhonePe

PhonePe has built a massive footprint in India’s digital payment space, but its journey ahead is a mix of massive growth opportunities and complex challenges.

Strengths

UPI Market Leader: PhonePe has held the crown as India’s top player for UPI transaction volumes for a long time, giving it a massive network advantage that is hard to beat.
Large User Base: With hundreds of millions of registered users on the app, the company has a ready-made audience whenever it wants to launch a new financial product.
Strong Merchant Network: Their QR code network covers everyone from local neighborhood shopkeepers to massive retail chains, giving them a rock-solid offline presence.
Diversified Ecosystem: They aren’t just a payment app anymore; they have built a sprawling ecosystem that covers insurance, digital lending, wealth management, and stock trading via Share.Market.

Weaknesses

Profitability Challenge: Even though their revenue numbers are shooting up, crossing the finish line into consistent net profitability remains a tough nut to crack.
UPI Dependency: A massive chunk of the app’s daily user traffic relies entirely on UPI transactions, making the core business heavily dependent on just this one segment.
High Operating Costs: Running this massive setup costs a bomb. Huge money flows out continuously just to upgrade backend tech, support heavy infrastructure, and kickstart entirely new market divisions.
Regulatory Exposure: Standing out as a top-tier fintech firm means surviving under constant scrutiny, which demands endless pivoting to match the frequently shifting rulebooks from RBI and NPCI.

Opportunities

Financial Services Expansion: There is still a massive, untapped market in India for digital loans, insurance products, and retail investments that PhonePe can capitalize on.
IPO Opportunity: Going public with an IPO in the near future could unlock massive amounts of fresh capital and significantly boost the company’s market profile.
Growth in the Indian Market: Digital payment adoption is finally exploding in smaller tier-3 towns and rural areas, offering a whole new wave of user acquisition.
International UPI Adoption: As more countries begin to accept Indian UPI, it opens up a golden opportunity for PhonePe to take its services onto the global stage.

Threats

Intense Competition: Rivals like Google Pay, a recovering Paytm, and emerging fintech startups are constantly fighting tooth and nail to grab a bigger slice of the market.
Regulatory Changes: Any sudden policy shifts regarding UPI transaction caps or digital payment guidelines could directly hit their core business model.
Margin Pressure: Processing core payments brings in incredibly thin profit margins, which makes relying on transactions alone a constant, uphill battle when you’re trying to build a sustainable, long-term business.
Cybersecurity Risks: With digital transactions skyrocketing across the country, the platform is always operating with a target on its back, forcing them to constantly defend against fraud, data leaks, and highly sophisticated cyberattacks.

Read Also: Reliance Jio Case Study

Conclusion

PhonePe’s journey has been quite interesting. Starting as a simple payment app, the company has now established a presence in sectors such as insurance, investing, and lending, alongside payments. This case study illustrates that having a good idea is not enough; proper execution and an understanding of market needs are equally crucial. It is for this reason that PhonePe is counted among India’s leading fintech brands today.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	TCS Case Study
2	Vedanta Case Study
3	Reliance Power Case Study
4	BPCL Case Study
5	Apollo Hospitals Case Study

Frequently Asked Questions (FAQs)

Who founded PhonePe?
It was started by Sameer Nigam, Rahul Chari, and Burzin Engineer.
When was PhonePe launched?
The platform went live in August 2016.
Is PhonePe owned by Flipkart?
Flipkart bought it back in 2016, but PhonePe now operates as an entirely separate company, Walmart is the current majority owner since 2022 separation
What is the business model of PhonePe?
They make money through digital payments, insurance, investments, lending, and merchant services.
How does PhonePe earn money?
Mainly through commissions, advertisements, merchant fees, and selling financial products.

June 22, 2026

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Why 10 Years Is the Sweet Spot for SIP Investing

Best SIP Plans for 10 Years in India: Top Funds to Consider

Overview of SIP Plan for 10 Years in India

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What Category of Fund Is Best for a 10-Year SIP?

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Conclusion

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Is direct plan better than a regular for a 10-year 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?

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How to use this SIP feature?

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