Gold has a special status in the Indian household; it reflects wealth and financial security. However, one gets confused between 22 Karat and 24 Karat gold, which one is suitable for jewellery and which one is suitable for investment.
In today’s blog post, we will give you an overview of 22 and 24 Karat gold, along with the key differences between them.
Meaning of Karat in Gold
Gold is a highly valuable metal; however, it is also very soft in nature. It is mixed with various other metals, such as copper, silver, and zinc, to enhance its strength. And the karat is a measure of the purity of gold, that is, how much gold is present in a gold coin or jewellery.
What is 22 Karat Gold?
22 Karat is a kind of gold which generally contains 22 parts of pure gold and the remaining two parts made up of other metals such as copper, silver, etc. It is generally known as 22K gold or 916 gold. If we talk in percentage, it has 91.67% of pure gold, and the remaining 8.33% is of alloy.
Key Features of 22 Karat Gold
The key features of 22 Karat Gold are as follows:
Purity: 22 Karat gold contains 91.6% pure gold, making it one of the purest forms of gold.
Intrinsic Value: The 22-karat gold contains a higher intrinsic value because it contains a pure form of gold.
Shape: 22 Karat gold can be easily moulded into different shapes of jewellery.
Hallmark: 22 Karat gold is commonly stamped as 916 or 91.6% gold content.
What is 24 Karat Gold?
24 Karat Gold is called the purest form of gold, as its 24 parts consist of pure gold, and no metal or alloy is mixed in it. 24 Karat is generally written as 24K or 999, because it is 99.9% pure gold. It is priced the highest among all types of gold.
Key Features of 24 Karat Gold
The key features of 24 Karat gold are as follows:
Hallmark: 24 Karat gold is hallmarked as 999 or 999.9 because of its highest form of purity.
Colour: The 24 Karat gold has a natural, bright yellow shine.
Softness: 24 Karat gold is very soft in nature and is very malleable; therefore, it is not recommended for daily use.
Investment Option: If someone wants to invest in physical gold, it is recommended to purchase 24 Karat gold.
Difference Between 22 Karat Gold and 24 Karat Gold
The key difference between 22 and 24 Karat gold is as follows:
Particular
22 Karat Gold
24 Karat Gold
Purity
It has 91.6% pure gold.
24 Karat gold is 99.9% pure.
Colour
22 Karat is deep yellow in colour.
24 Karat gold is bright, rich yellow in colour.
Usage
It is generally used in jewellery making.
This type of gold is often used as an investment option.
Price
The price of 22 Karat gold is slightly lower than 24 Karat gold.
It has the highest price per gram.
Resale Value
It generally has lower resale value than 24 Karat gold.
24 Karat gold has the highest resale value as it is the purest form of gold.
Hallmark
It has a hallmark code of 916
The hallmark code of 24 Karat gold is 999.
Durability
It is more durable than 24 Karat gold.
24 Karat gold is very soft in nature and is easily malleable.
Mixture
Other alloys and metals, such as copper, etc., are mixed in 22 Karat gold.
It is the purest form of gold; therefore, no other metals are mixed in it.
Which one is a better investment option?
24 Karat gold is considered a better investment option than 22 Karat gold as it offers higher purity and resale value. 24 Karat is the purest form of gold in which no metal is mixed; therefore, investors get the full value without dilution from the alloy. It usually comes with lower or no making charges; therefore, one can easily purchase 24 Karat gold coins, bars, etc. In addition to this, it is widely accepted and is comparatively easier to liquidate.
Which one is a better option for jewellery?
Generally, it is considered that 22 Karat gold is better for jewellery because it offers durability, which is an essential feature in jewellery. As 24 Karat gold is very soft, it can easily bend in daily usage. Whereas, in 22 Karat gold, other metals are mixed, such as copper and silver, which makes it stronger and more durable than 24 Karat gold. Therefore, 22 Karat gold is suitable for jewellery options.
How to verify the authenticity of 22 and 24 Karat Gold
To verify the authenticity of gold, whether it is 22 Karat or 24 Karat gold, one is required to check the BIS hallmarking on it. This is the most reliable method for verifying the purity of gold. 22 Karat gold has the BIS hallmark of 916, whereas 24 Karat gold has the hallmark of 999 or 999.9. The gold also has a HUID or Hallmark Unique Identification Number, which can be verified on the BIS care application.
Conclusion
On a concluding note, choosing between 22 Karat gold and 24 Karat gold depends on the objective of the user. If someone is looking to buy jewellery for consumption, then they must go with the 22 Karat gold as it offers a balance of purity and durability. On the other hand, if someone is looking for physical gold as an investment option, then they can consider 24 Karat gold because it is the purest form of gold and it has the highest resale value. However, BIS Hallmark must be checked by a person before purchasing any 22 Karat or 24 Karat gold.
However, one can invest in gold through ETFs offered by various AMCs using a simple and cost-efficient way to invest, platforms like Pocketfulallow you to invest in Gold ETFs with free account opening and zero brokerage on delivery trades, making long-term gold investing more convenient and transparent.
Frequently Asked Questions (FAQs)
What is the difference between 22 Karat and 24 Karat gold?
The key difference between 22 Karat and 24 Karat gold is the purity. 22 Karat gold contains 91.6% gold, and the remaining part includes some alloy, whereas, on the other hand, 24 Karat gold is made up of 99,9% gold.
Why is 24 Karat gold more expensive?
24 Karat gold is made of 99.9% gold; therefore, it is the most expensive form of gold.
Among 24 and 22 Karat gold, which is suitable for jewellery options?
22 Karat gold is more suitable for jewellery options because it is more durable than 24 Karat gold, as it is made of gold and other metals.
Does 24 Karat gold lose its value over time?
No, 24 Karat gold does not lose its value over time.
Can I invest in 24 Karat gold through a demat account?
Yes, you can invest in 24 Karat gold through ETFs from a demat account. You can easily open a lifetime free demat account with Pocketful, as it also offers free brokerage on delivery trades. Also, the trading platform of Pocketful is equipped with advanced trading tools.
Imagine you are out to buy vegetables and you have two choices to buy apples. First is a big supermarket like Reliance Smart or Big Bazaar where everything is packaged, checked for quality, and sold in small quantities. You can buy limited products only though it is a safer and easy option.
Second is a wholesale market or Mandi where you can get cheaper prices and also you may find great deals, but here you cannot buy limited products you must have to buy a whole sack of products here. Also the crowd here is different and you need to be an expert to pick the right sack.
In the stock market, Mainboard IPOs are like the supermarket and SME IPOs are like the wholesale market. Both are ways for companies to sell shares to the public. But the rules, the risks, and the money you need are completely different.
If you are thinking of investing, you must know the difference between ipo and SME ipo. Investing in the wrong one without knowledge can trap your money. In this blog, we will explain the difference between SME IPO vs mainboard IPO. We will also cover the new rules from 2025 and help you decide which one is right for you.
What is a Mainboard IPO?
The Mainboard is the game of big league in the stock market. When you listen to different news or hear people talking about the stock market on TV, they are usually talking about Mainboard companies. These are large, famous companies with a long history.
Key Features of Mainboard IPO
Big Companies: These are large companies that are in the market and doing business for many years and usually make good profits.
Strict Checking: Before any Mainboard IPO comes the Securities and Exchange Board of India (SEBI) crossverifies the company’s papers very strictly, as everything about their business needs to reach the public.
Small Investment: In Mainboard IPOs investment can be started with a very small amount which is the best part for the small investors. The minimum amount to invest starts between Rs.14,000 to Rs.15,000.
High Liquidity: Once the shares are listed on the stock exchange, you can buy or sell even one single share of the company. If you need money, you can sell your shares instantly as these shares are highly liquid.
Example: Companies like Zomato, LIC, or Reliance are on the Mainboard.
SME IPO stands for Small and Medium Enterprises. These are smaller companies, often young startups or family businesses that are growing at a fast pace. As they are small in size they cannot comply with strict and expensive rules of the Mainboard. So there is a special platform created for these SME companies by the stock exchange. This platform is NSE Emerge or BSE SME.
Key Features of SME IPO
Small Companies: These companies are still in the growing phase. You can imagine these companies as a local factory, a small IT company, or a chain of restaurants.
Less Strict Rules: These companies require lesser documents as compared to mainboard companies. The verification is mostly done by the Stock Exchange, not SEBI directly.
Big Investment: Here minimum investment is not Rs.15,000, these SME companies have a very high minimum entry. With the new rules effective from July 2025, you need more than Rs.2 Lakhs to apply.
Hard to Sell: One of the major problems here is the risk of selling these shares as you cannot trade 1 share, you need to trade in “Lots.”
Example: These are often smaller, unknown brands that operate in specific regions or industries. Generally they are not famous companies in the market.
“Lot Size” and “Liquidity” of Mainboard and SME IPOs
Feature
Mainboard IPO
SME IPO
Share Trading
Shares are individually traded
Shares are traded in fixed bundles called “Lots”
Liquidity
High liquidity
Very low liquidity
Risk
Low risk of capital getting stuck
High risk of capital getting stuck
Entry & Exit
Easy entry and exit
Difficult exit due to lot size and liquidity
Difference Between Mainboard IPO and SME IPO
Feature
Mainboard IPO
SME IPO
Company Size
Large and established companies
Small and growing companies
Regulatory Authorities
SEBI is the regulatory authority
Stock Exchange regulates these companies
Minimum Investment
Rs.14,000 to Rs.15,000
Above Rs.2,00,000 (2 lots)
Applied By
Anyone can apply in this (small & big investors)
Only big investors (HNIs)
Trading Unit
Can start trading from 1 Share onwards
1 Lot (eg: 1,000 shares)
Ease of Selling
Very Easy due to high liquidity
Difficulty in selling due to low liquidity
Listing Timeline
Takes around 6 to 12 months
Takes 2 to 3 months
New Rules for 2025
In the last few years, many people blindly invested in SME IPOs to make quick money. This was making the market a dangerous place, so SEBI introduced strict new rules that started in 2025 to keep small investors safe.
1. Minimum Amount Increased
Earlier, an investor can invest typically around Rs.1 Lakh in an SME IPO, but now, as per the new rules the minimum application size is 2 Lots. This means the minimum investment is now often above Rs.2 Lakhs. This effectively removes very small retail investors from this risky market.
2. No “Retail” Category
In Mainboard IPOs, there is a special quota for Retail investors. In SME IPOs, this category has been removed or renamed to “Individual Investors”. You are now competing with bigger players like HNI or non-institutional investors
3. Strict Monitoring
SEBI has asked stock exchanges to watch SME stocks closely. If a stock price jumps too high without any reason or the volatility spikes or abnormal trading patterns, they will put it under a “Surveillance Measure” (ASM or GSM). This restricts trading to protect investors from manipulation.
The company needs to have an operating profit track record of Rs.15 Crores in 3 out of the last 5 years.
Under new rules, the company must have an operating profit of at least Rs.1 Crore in 2 out of the last 3 years.
It should have assets (like land or machines) worth at least Rs.3 Crores.
The post issue capital must be less than Rs.25 Crores
The company’s paid-up capital must be at least Rs.10 Crores for eligiblility of Mainboard IPO
The company must be running for at least 3 years.
Advantages of Mainboard and SME IPOs
Advantages of Mainboard IPO
Safety: These companies are big and strictly regulated by authorities. There is less chance of the company conducting any fraudulent activities, delisting or sudden business failure.
Transparency: You get detailed financial reports every 3 months of these companies making you aware about the company.
Small Ticket: Investment can be started with a small amount of money.
Advantages of SME IPO
High Growth: Small companies can grow at a very fast pace. A small company can double its size in just a year, which is not possible in big companies like Reliance, Tata Motors, etc.
Multibagger Returns: If you pick the right SME stock, your money can grow 5 times or 10 times in just a few years.
Early Entry: You select these companies when they are at the start of their growth phase. If they perform well these SME can be shifted to Mainboard later on. The migration improves visibility and liquidity of the share which can positively impact valuation.
Risks Included in Mainboard and SME IPOs
Risks in Mainboard IPO
Slow Growth: Large companies are stable, but grow at a very slow pace and you might not see your money double quickly.
Market Risk: If the whole market gets unstable and it starts to falls, these stocks will also fall.
Risks in SME IPO
Liquidity Trap: You might not find a buyer for your “Lot” when you want to sell.
Lack of Information: These companies are not tracked by big news channels. You might not get enough information or news about what is going wrong inside the company.
Price Manipulation: Because the company is small, a few rich people can manipulate the stock price easily. They can pump the price up and then sell, leaving small investors with a loss.
Conclusion
If you are a new investor or have limited capital, you shall prefer Mainboard IPOs. stick to Mainboard IPOs. They are safer, easier to understand, and you can exit anytime.
If you are an experienced investor and have spare money to invest (more than Rs.2 Lakhs) then you can afford to risk and can look for some SME IPOs. They offer higher rewards but there is very high risk attached with them. It is just like hunting for treasure, you might find gold, or you might get lost.
You should always remember that return of capital is more important than return on capital, meaning you should first look for safety rather than returns.
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Investors cannot buy or sell 1 share in an SME IPO. You have to trade in “Lots” and one unit can have 100, 500, or even 1,000 shares depending on the price.
Why is the minimum investment for SME IPO Rs.2 Lakhs now?
To keep the small and new investors away from high risk, SEBI has increased the limit. They want only investors who have high risk-taking capacity to enter this market.
Can an SME company move to the Mainboard?
If an SME company grows big and reaches a market value of over Rs.100 Crores (and meets other profit rules), it can migrate to the Mainboard.
What is a Market Maker in an SME IPO?
Since SME stocks are hard to sell, the company hires a broker called a “Market Maker.” Their job is to stay in the market and offer to buy or sell shares so that investors are not stuck.
Is it safe to invest in SME IPOs?
It is riskier than Mainboard IPOs, while many SMEs give great returns, some can lose value or get suspended.
Silver not only serves as a commodity nowadays, their industrial demand in various sectors such as solar, electric vehicles, etc. has also increased over time. But the investors are confused about whether the prices of silver will decrease over time.
In today’s blog post, we will give you an overview of the historical price movement of silver, along with the key factors affecting silver prices in India.
Current Overview of Silver Trend
The prices of silver are making record highs not only in India but also globally. The silver price crossed 2.5 Lakh INR per kg in early 2026. The rally has been significantly driven by various factors such as strong industrial demand by different sectors, such as the solar industry, EV, electronics, etc. Rate cuts, weakening INR, are also considered a key reason for driving the silver price. Geopolitical tensions are causing investors to invest in silver as it is also considered a haven. The silver prices will continue to make new highs in the near future, followed by minor corrections.
Historical Price Movement of Silver
The silver price in India has shown a clear uptrend over the last few years. Prices remained stable before 2020, but when COVID struck, the demand for silver increased as it was considered a haven. However, after 2021, the prices of silver saw some consolidation, and after 2023, it went on a straight one-way upward rally. And in 2025, it made a lifetime high because of several reasons.
Year
Silver Price in India (INR/Kg) (Approx.)
Reason for Price Movement
2019
40600
Due to modest global demand, the prices remain stable, and prices recover from earlier volatility.
2020
63400
The prices of silver rose exponentially because of global economic uncertainties due to COVID-19, as silver is considered a haven during such periods.
2021
62500
Global market stablized then the prices were slightly corrected but remained stable.
2022
55100
Prices saw a sharp correction because of the normalisation of economic activities and easing of pandemic pressure.
2023
78600
The demand for silver increased due to demand from industries, which eventually increased the prices of silver.
2024
95700
Continued industrial demand from different sectors, such as solar, EV, etc. making a historical high.
2025
211000
Prices of silver are record high because of consistent demand, supply shortage, and currency impact.
Factors Affecting Silver Prices in India
The key factors that affect the silver prices in India are as follows:
Exchange Rate: India primarily imports silver from other countries. Weakening the INR makes silver imports costlier, which eventually increases the prices of silver in the domestic market.
Industrial Usage: The industrial usage of silver is increasing as it is used in solar panels, electric vehicles, electronic and medical equipment, etc.
Inflation: If inflation rises in the economy, silver is often considered a hedge against inflation, which enhances the purchasing power of the investor.
Geopolitical Conditions: If the geopolitical conditions across the world were not stable, then such instability would increase silver prices.
Will the Silver Rate Decrease in the Coming Days in India
Silver prices in India change based on several factors such as industrial demand, global market trends, and investor activity. Unlike gold, silver serves two purposes – it is both a precious metal and an important industrial material – which makes its price move up and down more sharply.
Key Factors Influencing Silver Prices
Industrial Demand: The need for silver in industries like solar power, electric vehicles, electronics, and semiconductors remains high. This steady demand helps keep prices supported.
Global Interest Rates and the US Dollar: When global interest rates rise or the US dollar strengthens, silver prices can see short-term drops – just like gold.
Gold–Silver Ratio: If silver prices fall behind gold, investors often expect silver to catch up. This expectation can prevent large price declines.
Economic Growth: If the global economy slows down, industrial demand for silver may weaken for a while, leading to a temporary fall in prices.
Indian Market Factors: In India, local silver rates are also affected by the value of the rupee, import duties, and growing investor interest through Silver ETFs.
Motilal Oswal forecasts that silver could continue its rally through 2026, setting targets around ₹3.20 lakh per kilogram in India due to strong industrial demand, ETF flows, and supply constraints.
Several factors could lower the silver prices in India, few of these factors are mentioned below:
Strong INR: A stronger INR against the dollar will lead to a reduction in import cost, which makes it cheaper for the domestic market.
Supply: If the global supply of silver is increased, it will lead to a fall in the price of silver and remove the constraint on the silver price.
Easing Geopolitical Tension: Situations of wars, trade tariffs, etc., will increase the prices of silver. Hence, stable geopolitical conditions will lead to stable silver prices.
Demand: Any reduction of demand from key sectors which use silver as a raw material for their products, such as solar energy, electric vehicles, etc., will lead to a decrease in the price of silver.
Invest In Silver fund
Here are some of the top Silver mutual funds in India that combine large AUM (Assets Under Management) with strong returns that are competitive above industry averages
1. ICICI Prudential Silver ETF FoF Direct – Growth
AUM – ₹5,906
1 Year Returns – 218.21 %
3 Year CAGR – 61.11 %
2. HDFC Silver ETF FoF Direct – Growth
AUM – ₹3,281
1 Year Returns – 216.23 %
3 Year CAGR – 61.20 %
3. Nippon India Silver ETF FoF Direct – Growth
AUM – ₹3,705
1 Year Returns – 218.83 %
3 Year CAGR – 61.19 %
4. SBI Silver ETF FoF Direct – Growth
AUM – ₹2,763
1 Year Returns – 220.23 %
2 Year CAGR – 111.39 %
5. Tata Silver ETF FoF Direct – Growth
AUM – ₹798
1 Year Returns – 212.15 %
Invest In Silver Etf
These are based mainly on 1-year return figures and notable performance trends
1. ICICI Prudential Silver ETF
AUM – ₹14,828
1 Year Returns – 238.10 %
Expense Ratio – 0.40%
2. HDFC Silver ETF
AUM – ₹6,074
1 Year Returns – 236.07 %
Expense Ratio – 0.45%
3. SBI Silver ETF
AUM – ₹4,747
1 Year Returns – 235.60 %
Expense Ratio – 0.40%
4. Kotak Silver ETF
AUM – ₹3,379
1 Year Returns – 232.78 %
Expense Ratio – 0.45%
5. Aditya Birla Sun Life Silver ETF
AUM – ₹2,895
1 Year Returns – 238.73 %
Expense Ratio – 0.35%
Global Affect on Indian Silver Price in 2026
Global factors are playing a key role in deciding the silver prices in India, and most of the global cues are pointing towards the strength in the silver prices in the coming years. The industrial demand for silver is increasing across the world, especially for sectors like solar energy, electric vehicles, electronics, etc. Such an increase in demand will push the prices upward. On the other hand, the expected interest rate cuts and current geopolitical uncertainties will lead to an increase in the prices of silver. Weak INR also acts as a catalyst for this price rise.
On a concluding note, the future outlook of silver remains positive in 2026, followed by various global and domestic factors. A short-term correction is expected due to profit booking, but the long-term view will remain positive. The silver prices are rising because of its increasing industrial usage in the solar industry, electronics, electric vehicles, etc., and this will support its structural demand in the long run. Weakening global cues and depreciating INR will also push the price upward. One can invest in silver only after consulting their investment advisor.
Frequently Asked Questions (FAQs)
What are the key factors affecting the silver prices in India?
The key factors that affect the silver prices in India are geopolitical conditions, exchange rate, industrial demand, etc.
Silver is used in which industries?
Silver is primarily used in industries like solar panels, electronics, batteries, electric vehicles, etc.
Why is silver more volatile than gold?
Yes, silver is more volatile than gold because it has more industrial usage, and its demand makes its prices more sensitive and volatile than gold.
Gold prices are continuously making new highs, which raises concern among buyers about whether it is the right time to buy gold or not, and whether the gold rate decreases in the coming days in India.
Gold prices tend to swing in the short run. Pullbacks after a strong rally are fairly normal. Still, predicting the exact top or bottom is a guessing game at best. In India, the picture gets even more layered. The rupee’s movement matters. Import duties can quickly change the cost base. Festive and wedding-season demand often adds its own pressure on prices.
For investors looking beyond the next few months, a gradual approach usually makes more sense. Investing in small tranches through Gold ETFs or gold mutual funds helps smooth out volatility and lowers the risk of getting the timing wrong. It is steady, boring, and often effective.
In today’s blog post, we will give you an overview of the historical price movement of gold, along with a list of factors that could lower the gold prices.
Historical Price Movement of Gold
After the COVID period, gold prices began increasing due to various factors, including a global economic shift and domestic currency correction. Gold prices have seen a short-term correction; however, the long-term trajectory remains upward because of inflation concerns and purchasing by central banks across the world. Let’s see how Gold prices have moved over the years.
Year
24 Karat Gold Price in INR/10 gram
Reason for price movement
2019
35220
The price of gold increases moderately during this period because of steady global demand.
2020
48651
During the COVID period, gold was considered a haven, and prices increased exponentially.
2021
48720
The gold market stabilised after the 2020 surge.
2022
52670
Because of increasing inflation, unfavourable geopolitical conditions, and a weak dollar support the gold price increases in this period.
2023
65330
Globally, the demand for gold has risen, and investment in safe haven has increased the price of gold.
2024
77913
After the pandemic and macro uncertainty, increasing inflation, the wedding season led to an increase in the price of gold.
2025
136570
Last year, the gold prices saw a record high because of increasing global bullion prices, weak INR, and increasing demand for gold.
Based on the above table, we can conclude that the Gold has risen consistently. However, in 2020 and 2025, it showed a significant rise.
Current Overview of Gold Trend
Gold prices in India are trading near their lifetime high levels, which reflects a strong demand because of both global and domestic factors. However, international gold prices are rising because of demand for gold as a haven, interest rate cuts by various central banks across the world, and political uncertainty. A few short-term corrections might happen in the near term, but the overall outlook for gold will remain positive, and factors like buying during the wedding and festive seasons will also drive the price upside.
Will the Gold Rate Decrease in the Coming Days in India
Gold prices in India are shaped by what’s happening around the world, how much people are buying locally, and changes in currency values. Right now, prices aren’t expected to drop sharply, but investors are waiting for slightly lower levels to buy.
Main Things That Affect Gold Prices
1. Global Interest Rates: If the US Federal Reserve holds off on cutting rates, gold might see some short-term pressure. When rates go down, gold usually becomes more attractive to investors.
2. Dollar and Rupee Movements: A strong US dollar or a weak Indian rupee often keeps gold prices high in India, even if global prices fall a bit.
3. Inflation and Safe-Haven Buying: With inflation staying high and global tensions continuing, many investors are turning to gold as a safe place for their money.
4. Central Bank Purchases: Many central banks—especially in developing countries—are still buying gold regularly. This helps keep prices from dropping too much.
5. Indian Market Demand: The wedding season and steady interest in gold through ETFs and Sovereign Gold Bonds are keeping demand strong at home.
The factors that affect the gold prices in India are as follows:
International Factors: Gold is traded in US dollar terms globally; any rise or fall in international gold prices can significantly impact Indian gold prices.
Inflation: Inflation plays a key role in the economic development of the country. And gold is considered a hedge against inflation during economic uncertainties.
Exchange Rate: As India primarily imports gold from other countries, therefore, depreciating the Indian rupee will make it more expensive, resulting in higher domestic prices of gold.
Geopolitical Tension: Any kind of war between the countries, political instability, etc., makes investors buy gold as a haven.
Factors that Could Lower the Gold Price
The key factors that could lower the gold prices are as follows:
Lower Buying by Central Bank: Whenever the central bank decreases its buying or stops purchasing gold, this will impact the overall demand and reduce the prices.
Gold Supply: If the gold supply increases because of higher gold production, this will lead to a price correction.
Equity Market: Gold and the equity market have an inverse relationship; if the equity market is performing well, the gold prices will correct, and investors will be directed towards equity.
Reducing Geopolitical Tension: A decrease in hurdles related to international trade, and easing of wars and political uncertainties, due to which investors will move away from gold.
Global Effect on Indian Gold Price in 2026
Global factors majorly influence the Indian gold prices in the coming year. Because of ongoing geopolitical tension, investors are seeking gold as a haven for investment. A weaker INR currency will also make the import of gold expensive and push the prices high. Purchases from the central bank will also remain strong as institutions diversify reserves. However, short-term correction in the gold price might happen because of profit bookings. These are the few global factors that keep gold prices high.
Invest In Gold fund
Here are some of the top gold mutual funds in India that combine large AUM (Assets Under Management) with strong returns that are competitive above industry averages
1. SBI Gold Fund – Direct Growth
AUM – ₹10,774
1 Year Returns – 79.13 %
3 Year CAGR – 34.9 %
2. HDFC Gold ETF Fund of Fund – Direct Growth
AUM – ₹8,501
1 Year Returns – 79.23 %
3 Year CAGR – 34.5 %
3. Nippon India Gold Savings Fund
AUM – ₹5,301
1 Year Returns – 78.42 %
3 Year CAGR – 34.4 %
4. Kotak Gold Fund – Direct Growth
AUM – ₹5,212
1 Year Returns – 78.19 %
3 Year CAGR – 34.1 %
5. ICICI Prudential Regular Gold Savings Fund
AUM – ₹4,481
1 Year Returns – 79.10 %
3 Year CAGR – 34.5 %
Invest In Gold Etf
These are based mainly on 1-year return figures and notable performance trends
On a concluding note, gold prices in India can see some short-term corrections, but a significant decline in gold prices is not expected in the long-run. Last year’s rally was due to various factors, such as economic uncertainties, geopolitical tensions, etc., and all such factors will also help gold prices to make new highs. Although a small downside because of profit booking might also lead to brief consolidation, the overall trend will remain strong and positive. Therefore, it is advisable to consult your investment advisor before making any investment in Gold.
Frequently Asked Questions (FAQs)
Will gold prices make a new high in 2026?
Gold prices can make new highs in 2026 owing to geopolitical factors and increasing demand.
How do Indian weddings and the festive season impact the gold prices?
Because of increased demand during the wedding and festive seasons, such as Akshay Trithya and Dhantares the gold prices increase.
Is it the correct time to invest in gold?
Yes, it is the correct time to invest in gold for the long term. Because of geopolitical conditions and uncertainty in the stock market.
How can I invest in gold?
There are various options to invest in golds such as Gold Mutual Funds, Gold Exchange Traded Funds, etc. To invest in Gold ETFs one can open a lifetime free demat and trading account with Pocketful, as it offers free brokerage on delivery trades, along with the advanced trading tools.
In 2026, due to changing market trends and interest rate fluctuations, investors are now focusing more on stable income and capital protection. In this scenario, Bond ETFs have emerged as a smart investment option. Compared to traditional bonds, they are more liquid and diversified. In this blog, you will learn about the best bonds to invest in, different risk levels, and strategies for building the right bond ETF portfolio.
What are Bond ETFs?
A bond ETF is an investment fund that invests in various government and corporate bonds. It is traded on a stock exchange like a regular stock. Its main objective is to provide investors with a stable income and to balance the risk in their portfolio.
The Bharat Bond ETF April 2030 is a target maturity bond ETF that primarily invests in bonds of high-quality public sector and government-backed companies. This fund is ideal for investors seeking stable returns over the medium to long term and prioritizing capital safety. Its portfolio strategy follows a “hold till maturity” approach, which significantly reduces the impact of interest rate volatility. This ETF is considered a reliable option for conservative investors and those planning for retirement.
Category
Details
Current Price
₹1562.07
1-Year Return
8.36%
3-Year Return
26.6%
5-Year Return
37.47%
52 Week Low
₹1232.00
52 Week High
₹1611.59
Fund Size
₹25,084.37 crore
Expense Ratio
0.01%
Beta
0.10
Sharpe Ratio
0.73
Fund Manager
Dhawal Dalal
2. Aditya Birla SL CRISIL Liquid Overnight ETF
The Aditya Birla SL CRISIL Liquid Overnight ETF is a fund designed for short-term investments. It is useful for investors who want to keep their money in a safe place for a short period. This ETF primarily invests in overnight money market instruments, resulting in very low risk. Its main focus is on liquidity and capital protection. It is considered a practical option for emergency funds or short-term needs where stability is paramount.
Category
Details
Current Price
₹ 1000.01
52 Week Low
₹ 999.99
52 Week High
₹ 1030.00
Fund Size
₹ 56.74 crore
Expense Ratio
0.43%
Beta
0.00
Sharpe Ratio
0.83
Fund Manager
Sanjay Pawar
3. Motilal Oswal Nifty 5 Year Benchmark G-Sec ETF
The Motilal Oswal Nifty 5 Year Benchmark G-Sec ETF invests in Government of India bonds with a 5-year maturity. This ETF tracks the Nifty 5 Year Benchmark G-Sec Index and constructs its portfolio accordingly. Due to the nature of government bonds, the credit risk is very low. The fund’s main objective is to provide stable returns and closely track the index performance.
Category
Details
Current Price
₹ 62.97
1-Year Return
7.54%
3-Year Return
24.62%
52 Week Low
₹57.00
52 Week High
₹65.80
Fund Size
₹103.29 crore
Expense Ratio
0.24%
Beta
₹65.80
Sharpe Ratio
0.59
Fund Manager
Rakesh Shetty
4. LIC MF Nifty 8–13 Yr G-Sec ETF
The LIC MF Nifty 8–13 Yr G-Sec ETF invests in long-term bonds issued by the Government of India, with maturities ranging from 8 to 13 years. This ETF tracks the Nifty 8–13 Year G-Sec Index and constructs its portfolio accordingly. The fund primarily holds sovereign bonds, resulting in very low credit risk. Its focus is on providing stable returns and long-duration exposure, making it sensitive to interest rate changes.
Category
Details
Current Price
₹28.72
1-Year Return
7.53%
3-Year Return
27.22%
52 Week Low
₹26.61
52 Week High
₹30.00
Fund Size
₹2,287.34 crore
Expense Ratio
0.17
Beta
0.73
Sharpe Ratio
0.61
Fund Manager
Marzban Irani
5. DSP NIFTY 1D Rate Liquid ETF
The DSP NIFTY 1D Rate Liquid ETF is a fund designed for short-term cash management. This ETF primarily invests in overnight money market instruments, such as Tri-Party Repo (TREPS), which keeps the risk significantly low. The fund aims to track the NIFTY 1D Rate Index and provide daily liquidity. This ETF is used for parking surplus cash and meeting short-term needs. Its value remains stable, and exiting the investment is easy.
Category
Details
Current Price
₹1000.01
52 Week Low
₹980.55
52 Week High
₹1002.
Fund Size
₹346.09 crore
Expense Ratio
0.30%
Beta
0.86
Sharpe Ratio
-3.60
Fund Manager
Anil Ghelani
6. HDFC NIFTY 1D Rate Liquid ETF – Growth
The HDFC NIFTY 1D Rate Liquid ETF is an ultra-short-term debt ETF that primarily invests in overnight money market instruments. Its portfolio is almost entirely invested in Tri-Party Repo (TREPS), which ensures the fund’s liquidity and significantly reduces risk. This ETF tracks the NIFTY 1D Rate Index and is used for short-term cash management. Its Net Asset Value (NAV) remains stable, making it a practical option for parking temporary surplus funds.
Category
Details
Current Price
₹1044.43
1-Year Return
5.20%
52 Week Low
₹990.00
52 Week High
₹1045.47
Fund Size
₹39.40 crore
Expense Ratio
0.45%
Beta
0.96
Sharpe Ratio
1.32
Fund Manager
Swapnil Jangam
7. SBI NIFTY 1D Rate ETF
The SBI NIFTY 1D Rate ETF is a short-term liquid ETF that invests most of its assets in overnight money market instruments. Its portfolio is almost entirely invested in Tri-Party Repo (TREPS), which ensures the fund’s liquidity and significantly reduces risk. This ETF tracks the NIFTY 1D Rate Index and is used for short-term cash management. The fund has a simple structure, and its main objective is to provide stable and predictable returns.
Category
Details
Current Price
₹1000.01
52 Week Low
₹999.00
52 Week High
₹1029.99
Fund Size
₹32.61 crore
Expense Ratio
0.35%
Beta
0.51
Sharpe Ratio
-1.93
Fund Manager
Tejas Soman
8. Groww Nifty 1D Rate Liquid ETF
The Groww Nifty 1D Rate Liquid ETF is a short-term debt ETF that primarily invests in overnight money market instruments. The majority of its assets are invested with the Clearing Corporation of India Ltd., ensuring the fund’s liquidity and minimizing risk. This ETF tracks the Nifty 1D Rate Index and is used for daily cash management.
Category
Details
Current Price
₹107.47
52 Week Low
₹100.00
52 Week High
₹108.34
Fund Size
₹62.54 crore
Expense Ratio
0.29%
Beta
0.97
Sharpe Ratio
-0.32
Fund Manager
Kaustubh Sule
9. ICICI Pru Nifty 5 Year Benchmark G-Sec ETF
The ICICI Pru Nifty 5 Year Benchmark G-Sec ETF invests in Government of India bonds with a 5-year maturity. This ETF tracks the Nifty 5 Year Benchmark G-Sec Index and constructs its portfolio based on the same structure. The majority of the fund’s assets are invested in sovereign bonds, resulting in very low credit risk. Its objective is to provide stable returns and closely track the performance of the government bond market.
Category
Details
Current Price
₹63.88
1-Year Return
8.26%
3-Year Return
25.13%
52 Week Low
₹ 58.05
52 Week High
₹ 66.70
Fund Size
₹58.02 crore
Expense Ratio
0.20%
Beta
0.09
Sharpe Ratio
0.65
Fund Manager
Darshil Dedhia
10. AXIS Nifty AAA Bond Plus SDL Apr 2026 50:50 ETF
The AXIS Nifty AAA Bond Plus SDL Apr 2026 50:50 ETF is designed for investors seeking steady returns with low risk. This fund invests half of its assets in bonds of strong AAA-rated companies and the other half in State Government loans. Its working principle is simple – buy the bonds and hold them until maturity. This minimizes the impact of market fluctuations. Due to its strong credit quality, this ETF is considered a safe and reliable investment option.
Category
Details
Current Price
₹13.15
1-Year Return
6.85%
3-Year Return
23.31%
52 Week Low
₹12.00
52 Week High
₹14.50
Fund Size
₹1,097.47 crore
Expense Ratio
0.10%
Beta
0.05
Sharpe Ratio
0.21
Fund Manager
Aditya Pagaria
How Bond ETFs Works
Step 1: Fund Manager Selects Bonds – The fund manager of a Bond ETF selects various government and corporate bonds. These bonds have different maturities and credit ratings to balance the risk.
Step 2: Investors Buy ETF Units – Investors buy units of the ETF on the stock exchange, just like shares. This gives them exposure to multiple bonds in a single investment.
Step 3: Bonds Generate Interest – The bonds within the ETF generate regular interest. This income is distributed to investors as dividends.
Step 4: Price Changes According to Market Rates – When interest rates fall, the price of the Bond ETF may increase. When rates rise, the value of the ETF may decrease.
Step 5: Investor Receives Total Return – In a Bond ETF, the investor receives a total return from two sources – regular interest income and capital gains or losses resulting from the ETF’s price movements.
Interest Rate Sensitivity: The price of a bond ETF depends on changes in interest rates. Short-term ETFs are less affected, while long-term ETFs react more significantly.
Credit Risk: Government bond ETFs are generally considered safe. Corporate bond ETFs carry slightly more risk, but may also offer slightly better returns.
Yield and Income: The ETF’s yield indicates the potential income an investor can receive. The frequency of income payments depends on the specific ETF.
Expense Ratio: The expense ratio is the fund’s annual charge. A lower expense ratio is better for investors.
Investment Goal: Choose an ETF that matches your investment goal, whether it’s safety or regular income.
Conclusion
Investing in bond ETFs in 2026 can be a simple and safe way to invest, especially when the market is volatile. Before investing, just make sure to check the fund’s duration, expense ratio, and risk level. Every ETF works differently, so it’s best to choose carefully. Making the right choice can help stabilize your portfolio.
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You plan to open an account with the bank. Now, you have the choice to open an individual savings account or a company current account. This is what people know in general. But do you know that there is an account which you can open for savings, but is not an individual savings account. This is called the HUF account.
It sits somewhere in between personal and business banking. It allows income from ancestral property, family businesses, or joint investments to be managed under one legal structure.
Many people overlook it simply because it is not discussed enough. But when used correctly, it can offer tax efficiency and better savings. So, let us explore the complete details of the HUF account here in this guide. Know the HUF benefits and who can open this account here.
What is a HUF Account?
The HUF full form is Hindu Undivided Family. It is a legal concept recognised under Indian law, where a family is treated as one separate entity for financial and tax purposes. Instead of income being divided among individuals, certain earnings and assets are held in the name of the HUF.
In simple terms, this is what a Hindu Undivided Family includes:
Members belonging to the same family by birth or marriage.
A Karta, usually the eldest member, who manages financial decisions.
A separate PAN and bank account in the HUF name.
Income from ancestral property, family business, or joint investments.
Understanding the HUF account helps you see why it is often used for structured savings and tax planning.
A HUF account is not only about tax saving. It plays an important role in tax saving, asset creation, and long-term planning. When families earn or invest together, this structure brings clarity and control.
Below is a detailed explanation of HUF account benefits, covering taxation, wealth creation, and financial discipline.
1. Separate Tax Identity and Lower Overall Tax
One of the most important HUF benefits is its separate tax status. A HUF has its own PAN and files a separate income tax return. This allows the same family income to be split across individual and HUF entities, which can reduce the overall tax outflow in a legal way.
2. Efficient Wealth Creation for the Family
A HUF account helps in building wealth collectively rather than in fragmented personal accounts. Income from ancestral property, family business profits, or joint investments stays within the HUF. Over time, this allows compounding to work at a family level. This supports long-term wealth creation.
3. Additional Tax Deductions and Exemptions
Another key HUF account benefit is access to tax deductions similar to an individual. A HUF can claim deductions under sections such as 80C, invest in tax-saving instruments, and enjoy basic exemption limits separately. This improves post-tax returns for the family.
4. Clear Separation of Personal and Family Finances
Many families mix personal and joint income, which creates confusion later. A HUF account creates a clean boundary. Family income is routed through the HUF. But all the personal earnings remain separate. This improves financial discipline and transparency.
5. Structured Investment Planning
A HUF can invest in mutual funds, fixed deposits, bonds, and even equities. These investments belong to the family unit. It means that these are not under any one person’s name. This structure ensures continuity of investments across generations. It also reduces dependency on one individual.
6. Support for Long-Term Succession Planning
One often ignored HUF benefit is smoother succession. It is important to know that the HUF continues even after the death of the Karta. The assets are not disrupted. This continuity helps families plan for future generations without frequent restructuring.
7. Better Use of Family Income Sources
Income sources like rent from ancestral property or profits from a joint family business fit naturally within an HUF. Routing such income through a HUF account avoids unnecessary tax pressure on one individual and keeps ownership clear.
8. Strong Foundation for Multi-Generation Wealth
An HUF account acts as a financial backbone for the family. It helps with savings and ensures that the family generates good wealth. This is why it is considered to be a great tool for families who wish to generate wealth and build long-term savings.
These HUF account benefits make it more than a tax structure. It is a long-term financial planning tool when used with clarity and proper advice.
How to Open a HUF Demat Account
The process is slightly different from an individual Demat account and follows these steps:
1. Open a HUF Bank Account First: A HUF Demat account must be linked to an active HUF bank account. All investments and settlements flow through this account.
2. Ensure HUF PAN Is Available: The HUF must have its own PAN. Individual PANs of members cannot be used for HUF investments.
3. Submit Required Documents: You can open an account with any of the above. These can include direct via bank of through platforms like Pocketful. These are usually required:
HUF PAN card
PAN and address proof of the Karta
HUF deed or declaration
List of HUF members
Bank proof of the HUF account
4. Karta Operates the Account: The Demat account is opened in the HUF name, but it is operated by the Karta on behalf of all members.
5. Complete Broker KYC and Agreements: Once KYC is verified, the broker activates the HUF Demat account for trading and investing.
A HUF structure offers more than tax efficiency. It helps families manage income, invest together, and build wealth in a disciplined way over time. With a HUF Demat account, these benefits extend to market-linked investments as well.
If you are planning to use HUF account benefits for long-term wealth creation, opening a HUF Demat account with Pocketful can be a practical next step. Pocketful offers a clear and guided process to help your family invest with structure and confidence.
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If you’re considering investing in ETFs in 2026, the first step is choosing the right platform. This is where your investment journey truly begins. The right ETF broker not only minimizes your costs but also provides better order execution and useful tools. In this blog, we’ll explain in simple terms how to choose the right ETF platform for you and how to select options like Gold ETFs.
What is an ETF Platform?
An ETF platform is an app or website where you can easily buy and sell ETFs. Just like with stock trading, you can see live prices, place orders, and track your portfolio.
The role of an ETF broker
An ETF broker acts as a bridge between you and the stock exchange. When you place a buy or sell order, the broker executes it on the market. A good broker is one who provides fast execution, avoids unnecessary charges, and offers reliable support when needed.
Difference between ETFs and Mutual Funds
You can buy or sell ETFs at any time during the day, just like stocks. In contrast, money invested in mutual funds is processed at the Net Asset Value (NAV) at the end of the day. This means that with ETFs, you have control over the price, but with mutual funds, you simply place an order, and the price is determined later.
Best ETF Platforms for Trading & Investment
Pocketful
Zerodha
Groww
Upstox
Angel One
ICICI Direct
HDFC Securities
Kotak Securities
Sharekhan
5paisa
1. Pocketful
Pocketful is a rapidly emerging modern trading and investment platform launched by Pocketful Fintech Capital Private Limited. This platform is specifically designed for investors who want to make smart investments at a low cost. On Pocketful, you can trade and invest in products such as ETFs, stocks, bonds, commodities, IPOs, futures and options, and Sovereign Gold Bonds (SGBs). A key feature is the very low brokerage and charges on many services, making it a preferred choice for both new and experienced investors.
Pocketful’s charges and brokerage
Charge name
Fees in Pocketful
Account opening charge
₹0 (Free)
AMC / Maintenance Charge
₹0 (Free)
Equity delivery brokerage
₹0 (Free)
Intraday / Trade Brokerage
₹20 per executed order or 0.03% of turnover, whichever is lower
2. Zerodha
Zerodha is a discount broker founded in 2010 by Nithin Kamath and Nikhil Kamath. Its headquarters are in Bengaluru. Zerodha revolutionized the trading industry with its low-brokerage model. On this platform, you can invest in stocks, ETFs, mutual funds, commodities, and derivatives. Its Kite trading app is fast, stable, and very popular among professional traders.
Zerodha’s charges and brokerage
Charge name
Fees in Zerodha
Account opening charge
₹0 (Free)
AMC / Maintenance Charge
₹0 (Free up to holdings less than Rs. 4 Lakh)
Equity delivery brokerage
₹0 (Free)
Intraday / Trade Brokerage
Flat ₹ 20 or 0.03% (whichever is lower) per executed order
3. Upstox
Upstox is a well-known discount broker in India, founded in 2009 by Ravi Kumar and Shrikant Bharti. Its headquarters are located in Mumbai. Today, Upstox provides millions of investors with the ability to trade in stocks, ETFs, IPOs, commodities, and derivatives. The platform is particularly known for its fast order execution and low brokerage fees. Both its mobile app and web platform are smooth and user-friendly.
Upstox’s charges and brokerage
Charge name
Fees in Upstox
Account opening charge
₹0 (Free)
AMC / Maintenance Charge
₹0 (Free for 1st year)
Equity delivery brokerage
₹20 per executed order
Intraday / Trade Brokerage
₹20 per executed order or 0.1% (whichever is lower)
4. Angel One
Angel One is one of India’s oldest and most trusted brokers, established in 1996. Formerly known as Angel Broking, the company is headquartered in Mumbai. Angel One offers a wide range of investment services, including stocks, ETFs, mutual funds, IPOs, and derivatives. Its key features include trading services combined with research and expert guidance, which is particularly helpful for new investors.
Angel One’s charges and brokerage
Charge name
Fees in Angel One
Account opening charge
₹0 (Free)
AMC / Maintenance Charge
₹0 (Free for 1st year)
Equity delivery brokerage
₹0 brokerage up to ₹500 for first 30 days, then lower of ₹20 or 0.1% per executed order, minimum ₹5
Intraday / Trade Brokerage
₹0 brokerage up to ₹500 for first 30 days, then lower of ₹20 or 0.1% per executed order, minimum ₹5
5. ICICI Direct
ICICI Direct is a leading full-service broker in India, launched in 2000 by the ICICI Bank Group. Headquartered in Mumbai, this platform is designed for investors seeking bank-linked and reliable services. With ICICI Direct, you can invest in stocks, ETFs, mutual funds, bonds, IPOs, and derivatives. Its robust research reports and professional support make it particularly attractive to long-term investors.
ICICI Direct’s charges and brokerage
Charge name
Fees in ICICI Direct
Account opening charge
₹0 (Free)
AMC / Maintenance Charge
₹300-₹700 varies on plans
Equity delivery brokerage
0.07%-0.29% varies on plans
Intraday / Trade Brokerage
0.007%-0.029% varies on plans
6. HDFC Securities
HDFC Securities was established in 2000 and is part of the HDFC Bank Group. Its headquarters are located in Mumbai. It is a full-service broker, considered ideal for investors who prefer to invest with the support of research and professional guidance. Through HDFC Securities, you can trade and invest in stocks, ETFs, mutual funds, IPOs, bonds, and derivatives. Its robust research reports and bank-linked services make it a reliable choice.
HDFC Securities’s charges and brokerage
Charge name
Fees in HDFC Securities
Account opening charge
₹0 (Free)
AMC / Maintenance Charge
₹0 (Free for 1st Year, ₹300-₹800 per year from 2nd year varies on plan selected)
Equity delivery brokerage
Around 0.50% (or ₹25 min)
Intraday / Trade Brokerage
Around 0.50% (or ₹25 min)
7. Kotak Securities
Kotak Securities was founded in 1994 and is a subsidiary of the Kotak Mahindra Bank Group. Its headquarters are located in Mumbai. It is a full-service broker, offering investment facilities in shares, ETFs, mutual funds, IPOs, bonds, and derivatives. Kotak Securities is known for its strong research team, reliable platform, and bank-linked services. It enjoys particular trust among long-term investors.
Kotak Securities’s charges and brokerage
Charge name
Fees in Kotak Securities
Account opening charge
₹0 (Free)
AMC / Maintenance Charge
₹600
Equity delivery brokerage
₹0 (Free)
Intraday / Trade Brokerage
₹10 per order or 0.05%, whichever is lower per executed order
8. 5paisa
5paisa was launched in 2016 and is a company associated with the IIFL Group. Its headquarters are located in Mumbai. 5paisa is a discount broker known for providing investment facilities at low brokerage rates. On this platform, you can trade in stocks, ETFs, mutual funds, IPOs, bonds, and derivatives. Its budget-friendly fee structure and simple app interface make it attractive to new investors.
5paisa’s charges and brokerage
Charge name
Fees in 5paisa
Account opening charge
₹0 (Free)
AMC / Maintenance Charge
₹300 per annum
Equity delivery brokerage
₹20/order
Intraday / Trade Brokerage
₹20/order
9. Rupeezy
Rupeezy is an Indian discount broking and investment platform that offers trading facilities for stocks, ETFs, mutual funds, IPOs, and derivatives. It is operated by Astha Credit & Securities Pvt. Ltd. and provides trading services on both the NSE and BSE exchanges. With Rupeezy, you can easily invest in instruments like ETFs through a simple interface.
Rupeezy’s charges and brokerage
Charge name
Fees in Rupeezy
Account opening charge
₹0 (Free)
AMC / Maintenance Charge
₹0 (Free)
Equity delivery brokerage
0.1% buy & sell
Intraday / Trade Brokerage
₹20 or 0.1% (lower)
10. Paytm Money
Paytm Money is a subsidiary of One97 Communications. Headquartered in Bengaluru, this platform is specifically designed for investors who want to invest easily and digitally through a mobile app. On Paytm Money, you can invest in products such as stocks, ETFs, mutual funds, IPOs, bonds, and NPS. Its simple interface and trusted brand make it very popular among new investors.
Paytm Money’s charges and brokerage
Charge name
Fees in Paytm Money
Account opening charge
₹0 (Free)
AMC / Maintenance Charge
₹0 (Free)
Equity delivery brokerage
2.5% of turnover or up to Rs. 20/- per Executed Order, whichever is lower
Intraday
0.05% of turnover or up to Rs. 20/- per Executed Order, whichever is lower
Key Factors to Consider Before Selecting an ETF Platform
Brokerage and Charges : When choosing a platform, understanding the charges is crucial. Many brokers advertise low brokerage fees but add other charges like DP charges or other fees. Therefore, always check the complete fee structure before opening an account to avoid any surprises later.
Order Execution and Speed : The speed and accuracy of order execution are vital when buying or selling ETFs. A good platform is one where slippage is minimal and orders are executed smoothly without delays.
Available ETF Categories : Not all platforms offer all types of ETFs. Some platforms may have a wider selection of index ETFs, while others might offer better options for gold or debt ETFs. If you are interested in international ETFs, confirm beforehand whether the platform provides this facility.
Research and Tools : A good ETF platform helps you make informed decisions. It should offer tools like ETF screeners, NAV tracking, and expense ratio comparisons so you can choose the right ETF without confusion.
User Experience and App Stability : If the app frequently crashes or runs slowly, trading becomes difficult. Therefore, choose a platform whose mobile app and website are both smooth and perform well even under high traffic.
Reporting and Tax Support : Receiving accurate reports after investing is essential. The platform should provide easy access to capital gains reports and complete transaction history to avoid any difficulties during tax filing.
Investing in ETFs is easy, but choosing the right platform requires careful consideration. Every broker is different – some offer lower fees, while others provide better tools. Therefore, choose a platform that matches your needs and trading style. With the right platform, investing becomes stress-free, and you can comfortably manage your finances for the long term.
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Investing is not just about chasing returns, it is about finding the right balance between growth and comfort. Many investors feel large cap investments move too slowly, while aggressive strategies can bring sleepless nights. As markets evolve, the need for a middle path becomes clear. This is where mid cap investing gains importance. It offers exposure to faster growing businesses while avoiding extreme uncertainty. For investors looking to participate in India’s long term growth story without taking outsized risks, mid cap funds deserve serious attention. That is where mid-cap mutual funds step in.
What are Mid-Cap Mutual Funds
Mid-cap funds invest in companies that are past the survival stage but still hungry to grow. They are expanding capacity, entering new markets, and moving toward becoming tomorrow’s large-cap. For investors who can stay patient and disciplined, mid-cap funds are often a good option to consider higher growth potential.
Mid-cap mutual funds invest in companies ranked roughly between 101 and 250 by market capitalisation, as defined by SEBI. These companies are not unknown startups. They already have products, customers, and revenues. Mid-caps are businesses in the middle of a growth journey.
How to Choose the Best Mid-Cap Mutual Fund
Choosing a mid-cap fund is less about chasing returns and more about trusting the process.
Look Beyond One-Year Performance – Top-performing mid-cap funds change frequently. Focus instead on consistency across market cycles, especially how the fund behaved during corrections.
Pay Attention to the Fund Manager – Mid-cap investing requires judgment. A steady fund manager with a sound investment philosophy matters far more than fascinating short-term numbers.
Check Portfolio Quality – A good mid-cap fund prefers fundamentally strong businesses with growing revenue and expanding margins over momentum-driven stocks.
ICICI Prudential Midcap Fund is known for its balanced approach to mid-cap investing. Instead of chasing short-term market trends, it focuses on identifying companies with sustainable business models and long-term growth potential.
1-Year Return
3-Year Return
5-Year Return
No. of Stocks
Benchmark
13.79%
82.61%
157.35%
90
Nifty Midcap 150 TRI
2. Mirae Asset Midcap Fund
Mirae Asset Midcap Fund follows a quality-focused strategy, investing in mid-cap companies with strong balance sheets and earnings visibility. It avoids excessive risk-taking and prefers businesses with clear competitive advantages.
1-Year Return
3-Year Return
5-Year Return
No. of Stocks
Benchmark
11.40%
72.12%
148.80%
72
Nifty Midcap 100 TRI
3. HDFC Mid Cap Fund
One of the most well-known names in the category, HDFC Mid Cap Fund, focuses on fundamentally strong mid-sized companies with long growth runways. Its large asset base brings stability and works well for long-term investors
1-Year Return
3-Year Return
5-Year Return
No. of Stocks
Benchmark
9.85%
95.41%
193.19%
78
Nifty Midcap 150 TRI
4. Tata Mid Cap Fund
Tata Mid Cap Fund takes a relatively disciplined approach, balancing growth opportunities with valuation comfort. It spreads investments across sectors instead of making aggressive thematic bets, which helps control downside risk.
1-Year Return
3-Year Return
5-Year Return
No. of Stocks
Benchmark
8.23%
81.05%
141.09%
69
Nifty Midcap 150 TRI
5. Invesco India Mid Cap Fund
Invesco India Mid Cap Fund focuses on identifying emerging businesses early in their growth cycle. The fund maintains a research-driven approach and avoids excessive churn
1-Year Return
3-Year Return
5-Year Return
No. of Stocks
Benchmark
8.23%
101.23%
171.52%
51
BSE 150 Midcap TRI
6. WhiteOak Capital Mid Cap Fund
WhiteOak Capital Mid Cap Fund follows a clean, process-oriented investing style, combining growth potential with risk awareness. The fund prefers companies with strong fundamentals and avoids overly leveraged or speculative bets
1-Year Return
3-Year Return
5-Year Return
No. of Stocks
Benchmark
8.06%
96.39%
–
146
BSE 150 Midcap TRI
7. Canara Robeco Mid Cap Fund
Canara Robeco Mid Cap Fund has gained attention for its consistent performance and disciplined stock selection. The fund leans toward quality businesses and avoids chasing hot sectors blindly.
1-Year Return
3-Year Return
5-Year Return
No. of Stocks
Benchmark
6.98%
73.93%
–
62
BSE 150 MidCap TRI 100
8. ITI Mid Cap Fund
The ITI Mid Cap Fund is a smaller and relatively less-discussed fund in the category. It invests across a broad range of mid-cap companies, aiming to capture growth while managing risk.
1-Year Return
3-Year Return
5-Year Return
No. of Stocks
Benchmark
6.83%
89.28%
–
85
Nifty Midcap 150 TRI
9. Nippon India Growth Mid Cap Fund
Nippon India Growth Mid Cap Fund is among the older funds in this category and follows a growth-oriented investing style. Over full market cycles, it has rewarded investors who stayed invested and avoided reacting to short-term underperformance.
1-Year Return
3-Year Return
5-Year Return
No. of Stocks
Benchmark
7.51%
93.98%
179.98%
100
Nifty Midcap 150 TRI
10. Aditya Birla Sun Life Mid Cap Fund
Aditya Birla Sun Life Mid Cap Fund focuses on identifying mid-sized companies with improving fundamentals and scalable business models.
Mid-cap mutual funds are not shortcuts to quick profits. They are a source of wealth creation with patience. If you invest regularly, stay disciplined during volatility, and allow time for compounding, mid-cap funds can become the growth engine of your portfolio. The real edge doesn’t come from picking the “best” fund. It comes from staying invested when it is difficult to do so.
S.NO.
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When investing in individual stocks, an individual faces high concentration risk. This means that the financial security of the individual depends solely on the success of the single business. If the specific business faces hard times, the whole investment of the individual is threatened.
To counter this, an ETF (Exchange Traded Fund) provides a safer and easier way to invest by allowing immediate diversification. Instead of trying to pick the winning horse by picking one stock, an ETF helps you purchase a whole lot of some of the best companies in the market with a single investment. This will help diversify the risk and make sure that the value of your wealth rises with the rising economy and not fall with the falling prospects of the failed entity.
With a diversified list of top-performing investments, an ETF helps to diversify your investment portfolio. It gives you the opportunity to experience the success of the markets while also serving to shield your investment from the volatility of the stock markets.
Overview of Index ETFs in India
An ETF (Exchange Traded Fund) is a collective investment that pools money from various investors to purchase a diversified portfolio of assets, such as stocks, bonds, or commodities. As you put your money in the Nifty 50 ETF, the fund manager invests that amount into all 50 stocks that make up the Nifty 50 index in the same ratio as the Nifty 50 index.
The funds merely replicate a list referred to as an “Index”. For instance, the Nifty 50 Index comprises a list of the 50 biggest companies in India. The ETF manager does not use their own brain to pick stocks, instead they just copy this list. If Reliance Industries is 10% of the list, the ETF puts 10% of your money into Reliance.
This is the most popular ETF in India. The trading volume is massive, so you can buy and sell instantly without suffering bid-ask spread. It has an expense ratio of roughly 0.04%, making it a top choice for beginners and active investor The fund has a low tracking error of just 0.02%.
2. SBI Nifty 50 ETF
This fund manages a huge amount of money because government bodies like the EPFO invest here. It is safe and stable compared to individual stock investing. With an expense ratio of about 0.04%, it is perfect for long-term investors who prioritize safety. The fund closely mimics its benchmark with a tracking error of only 0.02%.
3. ICICI Prudential Nifty 50 ETF
It has the reputation of being highly efficient. ICICI has the reputation of maintaining the tracking error ratio well within limits. The cost ratio has been quite competitive, even at times touching 0.02%, thus emerging as the best choice for frugal investo The fund exhibits exceptional index alignment, reflected in a 0.02% tracking error.
4. HDFC Nifty 50 ETF
HDFC is a trusted brand, and the ETF is very liquid and economical too. This would be a very attractive option for those who already have some investment schemes with HDFC and want to keep all the schemes under one roof. A tracking error of 0.02% underscores the fund’s high level of replication accuracy.
5. UTI Nifty 50 ETF
This is almost the largest in terms of size and it has a large asset base (AUM) because it handles massive investments from different government pension bodies. This large size gives it great stability and a very low tracking error of 0.02%. It has an expense ratio of 0.05% and is one of the highest reliable funds where you can buy it and forget it for long term investment.
6. Nippon India ETF Nifty Midcap 150
This is a reliable option to invest in the mid cap category, with an asset base (AUM) of over 2,800 Crores. Due to its massive size investors get high liquidity making entry and exit very easy. It has an expense ratio of about 0.21% and is one of the aggressively growing mid cap funds in the market.
7. Mirae Asset Nifty Midcap 150 ETF
This is the highly efficient midcap fund that manages a good asset base (AUM) of around 1,350 Crores with a low tracking error of 0.04%. This is one of the cost effective choices for the investors with its expense ratio of about 0.05%. This can be an ideal choice for the investors that are looking for a low expense ratio and high midcap growth potential.
8. HDFC Nifty Smallcap 250 ETF
This is a trusted option to capture in the entire smallcap section, with an asset base (AUM) of over 1,500 Crores. This fund offers a diversified basket of around 250 high growth potential companies that are ranked between 251-500, these are the companies that are potential market leaders of the future. It has an expense ratio of about 0.25% and provides a structured low cost method to access the high risk and high return fund market.
9. Nippon India ETF Nifty 100
This fund provides investors with both stability and growth potential as you get top 50 companies and the best 50 growing companies in the market. It has a decent asset base (AUM) of around 325 Crores and acts as a single window to access the entire large cap market. This fund has an expense ratio of around 0.50% and is best suitable for investors that want to manage a single large cap fund rather than managing two separate funds. The fund demonstrates tight benchmark adherence, keeping tracking error down to 0.03%.
10. LIC Nifty 50 ETF
This fund has a strong backing as it is backed by the most trusted insurance giant in the country, making it reliable for the investo The asset base (AUM) of this fund is around 900 Cr., this fund gives a steady and disciplined approach to track the index. It has an expense ratio of 0.06% making it a cost effective option for the investors along with the safety and history associated with the brand LIC.
Cost Efficiency: The actively managed funds or mutual funds charge you 1% to 2% annually as Total Expense Ratio. Index ETF funds start from 0.04% per annum. This looks like a small number, but multiply it by 20 years, and it would be some lakhs of rupees that would remain with you instead of going to the fund management company.
High Liquidity and Real-Time Trading: You are free to buy or sell your ETF units at any time during the market hours (9:15 AM to 3:30 PM). One characteristic of mutual funds, which does not apply to ETFs, is the restriction to check the price at the end of the trading day to know the price at which you can buy or sell.
Broad Market Diversification: The diversification reduces company specific risk. For example, if you invest in a Nifty50 ETF, you are exposed to 50 different companies with one unit. If one fails, it doesn’t wipe out your portfolio because you have 49 other companies working for you.
Elimination of Fund Manager Bias: The fund manager cannot go wrong since they are not making human stock picking bias or decisions. Their decisions are governed by the rule of the index. You don’t have to worry since the manager might be having a bad year.
Factors Affecting the Indian Stock Market in 2026
Foreign vs. Indian Investors : Indian markets often see FIIs selling equities to reallocate capital globally, which can pressure prices in the short term. However, steady investments from domestic investors through SIPs and institutions frequently absorb these outflows, helping markets stay stable rather than collapse.
Corporate Report Cards (Earnings) : Stock price changes are driven by the company’s profits. A company that misses earnings estimates will typically see a drop in their share price. Investors with a long-term investment strategy tend to focus on the fundamentals of a business, therefore, they will buy shares on corrections caused by a company’s earnings miss, as these corrections are part of the cyclical nature of all industries.
Global Connection: Global factors influence Indian markets. Rising US interest rates can pull capital toward US bonds, increasing volatility in India. Over time, stronger domestic growth, higher savings, and broader retail participation can reduce dependence on foreign flows, though short-term fluctuations remain inevitable.
Things to Consider Before Buying Index ETF in India
Measuring the Deviation : This shows how accurately a fund tracks the index. A 10% rise in the Index means a rise of 10% in the ETF too. An ETF may rise by 9.95%, so the difference is referred to as ‘Tracking Error’. You must aim at a fund with a near zero tracking error.
Liquidity & Trading Volume : This is the most critical aspect. You need an ETF where thousands of people trade every day. If there are fewer people exchanging it, then it may happen that when you want to sell, there is no one to buy it or have to forcefully sell it at lower prices. Always select an ETF with high volume.
Asset Under Management (AUM) : Assets under Management is the amount of money that the fund has invested. This means that the more the fund is worth, the more it is likely trusted and stable. This is because it is able to accommodate more individuals.
Expense Ratio Comparison : It is the cost you have to pay. It is essential to look out for the lowest expense ratio at all times. It ensures that you benefit with higher returns.
You cannot invest in ETFs without opening a Demat account. This can easily be done online on Pocketful. Complete the e-KYC procedure. Your account will then be ready for trading.
Conclusion
Investing via Index ETFs is not merely an investment decision but an investment in your future self. By making this decision, you are moving away from the “stress” of “guessing” the market and relying instead upon the growth of the best performing companies in India. This is a liberating way to build your wealth by allowing you to share the benefits of the very economy you are a part of every day, but you no longer need to be a full-time expert in order to do so.
Remember, the art of the investment is not merely to become rich quickly but to “stay the course” and let the power of time work for you and not against you.
S.NO.
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You can start with the price of just one unit, for Nifty BeES, that is around 290. You do not need thousands of rupees to begin your journey.
Can I do an SIP in ETFs?
Yes. Most brokers allow a “Stock SIP” or “ETF SIP”. You simply select a date and amount, and the broker will automatically buy the units for you every month.
Are ETFs safe?
They carry “market risk”, if the stock market falls, your ETF value will fall. However, they are much safer than buying individual stocks because your risk is spread across 50 or 100 companies.
When should I sell my ETFs?
Sell only when you need the money for a specific goal (like buying a house or retirement). Do not sell just because the market fell 5% yesterday. Market drops are usually the best time to buy more!
How are my profits taxed?
For Indian Equity ETFs, such as Nifty 50, if you sell within 1 year, you pay 20% tax on the profits. If you sell after 1 year, you pay 12.5% tax on the profits. The good thing is that profits up to 1.25 Lakhs in a year are tax-free.
The cost of education is increasing aggressively and way ahead of the return you get on traditional savings like Fixed Deposits. You require an investment option that should offer superior returns along with consistent and disciplined growth.
Children’s Mutual Fund is specially created to cope with such a challenge. It holds the high growth capability of the stock market, which is required for wealth creation, along with a lock-in period, which encourages disciplined long-term investing and benefit from the power of compounding over time.
This strategic investment will help your money grow at a rate that outperforms the increasing college fees, thus ensuring the substantial corpus is achieved in the next 10 to 15 years in order to give the best possible future to your child.
The Need for Growth
You must have read about inflation. It is the rate at which the prices rise. In India, the normal inflation rate is 5% or 6%. But the inflation rate in education is different. It rises by 10% to 12% on a yearly basis.
This means an Rs.10 Lakhs college education will cost Rs.30 Lakhs or more once the new-born turns 18 years old. If your savings are in a Fixed Deposit, it might not grow at a rapid enough rate to keep up with this large figure. You require market-linked growth, which means your investments should grow as the Indian economy flourishes.
What are Children’s Mutual Funds?
These are specific mutual funds and are classified by the market regulator SEBI as ‘Solution Oriented Schemes’. The ‘solution’ here may be financing your child’s major life events such as further studies or his/her marriage.
Unlike ordinary funds, these come with a special rule which will help you cut costs. There is a mandatory ‘lock-in’ period. This means that once you have deposited money, you cannot withdraw it for a period of 5 years or until your child is an adult 18 years.
This lock-in effect is actually an advantage. It prevents you from withdrawing this money for such things as buying a car or going for a holiday vacation. It holds your money inside and lets it grow.
This fund has shown a very good performance and has given investors a return of 23% in the last 3 years. This mutual fund is volatile but powerful as well, in this the fund manager invests large amounts in equities and focuses on high growing sectors like finance and consumption. It is very high risk and is best suitable for long term investment (7+ years).
3 Year Return (CAGR)
5 Year Return (CAGR)
Returns Since Inception (CAGR)
22.77%
27.93%
32.73%
2. ICICI Prudential Child Care Fund (Gift Plan)
It has shown a strong performance with an annual return of 18% in the last 3 years and around 15% in the last 5 years. This is a balanced mutual fund which follows a dynamic asset allocation strategy that jumps between equity and debt to protect you during the market downturn. It is highly risky but it is reliable for long term investment of about 7-10 years.
3 Year Return (CAGR)
5 Year Return (CAGR)
Returns Since Inception (CAGR)
18.33%
15.58%
15.49%
3. HDFC Children’s Gift Fund
This fund has a stable and consistent performance and has delivered 15% returns in a year for the last 3 years and about 16.5% in the last 5 years. This is a highly stable equity fund and here the manager maintains a large cap bias (stable players like HDFC Bank, ICICI bank), this helps in reducing the volatility. This is an aggressive hybrid fund that is highly risky and best suitable for parents that are looking to compound steadily.
3 Year Return (CAGR)
5 Year Return (CAGR)
Returns Since Inception (CAGR)
15.82%
15.92%
15.47%
4. Tata Young Citizens Fund
It has a moderate performance with returns of 13% per annum over the last 3 years and about 14% for the last 5 years. This fund has about 96% exposure to the equity and behaves like a Flexi-Cap fund where investment is done across different companies. This fund is highly risky with no debt cushion and is much riskier than the hybrid options available in the market.
3 Year Return (CAGR)
5 Year Return (CAGR)
Returns Since Inception (CAGR)
13.41%
13.83%
5.61%
5. SBI Children’s Fund – Savings Plan
This fund has given a return of 12% per annum in the last 3 years. You can get maximum stability in this as this is a debt based fund where investments are mainly in bonds which give fixed income with small investments in stocks. Here the risk is between moderate to high and it is best suited to save your capital rather than purely focusing on the growth.
3 Year Return (CAGR)
5 Year Return (CAGR)
Returns Since Inception (CAGR)
12.26%
12.68%
10.63%
6. Aditya Birla Sun Life Bal Bhavishya Yojna
This fund has shown a moderate performance with 15% annual returns in the last 3 years. The fund focuses on growth and operates as a diversified equity fund that has a mix of large cap and mid cap stocks. It is high and is best suitable if you are looking for an equity based portfolio for your child’s future.
3 Year Return (CAGR)
5 Year Return (CAGR)
Returns Since Inception (CAGR)
16.99%
12.67%
13.09%
7. LIC MF Children’s Fund
This fund has given a return of 11% in the last 3 years making it behind the other similar mutual funds. It has low AUM risk and even the size of the fund is small, which can result in liquidity problems or even expense ratio fluctuations. It is a very risky fund although the AUM is low with lower returns but other options in the market.
3 Year Return (CAGR)
5 Year Return (CAGR)
Returns Since Inception (CAGR)
12.45%
10.01%
10.20%
8. UTI Children’s Equity Fund
This has shown a stable performance and has delivered 15% returns in the last 3 years and about 14% in the last 5 years. The fund manager follows a “Growth at Reasonable Price” (GARP) strategy, avoiding overly expensive stocks. This is a high risk based fund which has pure equity funds best suitable for aggressive investors.
Equity (Stocks): A major portion of it is invested in stock of companies. It is the portion that helps multiply your money quickly in a matter of years.
Debt (Bonds): Some portion of the money goes to safe government bonds or to safe businesses. This portion functions as a safety cushion. If your stock goes down, this portion holds your entire money intact.
Aggressive and Conservative Plans
Aggressive Plans: In these plans, the portfolio is mainly invested in the stock market (approximately 65% to 80%). It is suitable for the child if he/she is very young, as you will have more than 10 years to grow the savings. Higher growth is associated with higher risk, and time helps to overcome the risk.
Conservative Plans: Money is mostly invested in secure bonds and a comparatively lower amount in stocks. This is ideal for your child if he or she is 15 years old already and the money is needed immediately. There is less point in risking the money if the target is achieved.
Advantages of Children’s Mutual Fund Plans
Replacing Your Future Self With Your Bigger Present Self
Compounding is simple arithmetic where your interest earns even more interest. By investing Rs.10,000 every month for 15 years at a 12% return, you can walk away with about Rs.50 Lakhs. The total amount that the principal put in was only Rs.18 Lakhs. The rest was house money, the money that your money made for you. Time is the best ingredient for this magic formula.
Lock-in Induced Discipline
We always tend to dip into our savings for short-term requirements. The 5-year lock-in in these funds rules that out. It legally assures that the money intended for your child’s college fees is not touched. We are told how the enforced discipline is the reason many parents opt for this over open-ended funds.
Education at High-Rate
The rate of inflation in education is well known to be on the order of 10% to 12%. Traditional savings like PPF give around 7.1%. The PPF’s actual purchasing power is falling relatively as the cost of education is rising.
Tax Benefits
You pay taxes your gains are taxed favorably even as you invest with your post-tax income. In case you sell the fund after a year, profit exceeding Rs.1.25 Lakh is at 12.5%. This is much lower than the 30% tax you might pay on Fixed Deposit interest if you are in the highest tax bracket.
Things to Consider Before Investing in Children’s Mutual Fund Plans
Assessing Time Horizon
The investment choice depends entirely on how many years remain until you need the money. If your child is 0 to 5 years old, you have a long horizon and should choose aggressive funds rich in stocks for maximum growth. If the child is 10 to 12 years old, a balanced approach is safer. However, if the child is over 15, you have very little time to recover from market crashes, so you must avoid risky equity funds and stick to safer debt funds or conservative plans.
Risk
Think about whether you can bear what happens when the investment value goes down temporarily. The stock market fluctuates and goes down and up. In the end, it goes up. However, for a short period, it can be alarming. If you tend to panic, select a fund that holds a larger amount of debts such as HDFC Children’s Fund.
Minimizing Costs
Every mutual fund incurs an expense ratio. Always select the Direct Plan while making an investment. This is possible through apps like Zerodha or Groww. The Direct Plan incurs lower expense ratios (approximately 0.8% to 1%) in contrast to the Regular Plan (approximately 2%). The difference of 1% in 15 years results in a massive difference.
Regulatory and Tax Implications
Opening the Account
These funds are opened in the name of the Minor Child. You will be the Guardian. You cannot add a joint holder. The investment belongs to the child. You need the child’s birth certificate and your own KYC documents (PAN/Aadhaar) to open the account. The money can come from your bank account or the child’s bank account.
Clubbing of Income
Income earned by a minor is added to the parent’s income for tax purposes (“Clubbing”). You get a small exemption of Rs.1,500 per child per year. However, you only pay tax on mutual funds when you sell. If you hold until the child turns 18, you defer the tax liability.
Child Turning 18 (Minor to Major)
When the child turns 18, the account freezes. You must submit a “Minor to Major” application. The child (now adult) needs their own PAN card, bank account, and KYC. The control of the money legally shifts to the child.
Future security is the best gift you can give a child. When you plan now, you help make sure that money won’t stand in the way of your child’s education or career.
A child mutual fund gives you the discipline of a lock-in and the benefit of market-linked gains. The same effect can be noticed in funds like the SBI Magnum Children’s Benefit Fund which has proved that one can significantly beat inflation with right strategy. Keep that in mind, start early. Even if you can’t start big, start now. Small sacrifices now will build a mountain for you child to stand on tomorrow.
S.NO.
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Can the invested amount be withdrawn before the lock in period is over?
No, the lock-in period is a mandatory factor in these funds. You cannot withdraw the money before the lock in period or until the child turns 18.
Who pays the tax on the gains?
As long as the child is a minor the parent (guardian) pays the tax on the gains. The income is clubbed with the parent who earns more. Once the child turns 18 they become responsible for the tax on any future gains.
What documents are required before opening the minor account?
A child’s birth certificate or passport is the primary document that is required as this is the age proof, also PAN card and Aadhar card of the parents or guardian is required.
Can I invest the money on my name or is it mandatory to do the investment on a child’s name?
You can invest in either of them as it is totally your choice and there is no tax benefit if you do it on a child’s name due to the clubbing provision.
What happens if I die?
If the guardian passes away a new guardian (usually the other parent or a court-appointed legal guardian) must be registered with the fund house.
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