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Top Reasons Why Mutual Funds Are Going Down in 2026

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

Can You Actually Lose Money in Mutual Funds?

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

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

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

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

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

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

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

Real Reasons Why People End Up With Mutual Fund Loss

1. Buying High, Selling Low

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

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

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

2. No Investment Horizon in Mind

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

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

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

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

3. Wrong Fund for Your Risk Appetite

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

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

Before picking any scheme, be honest about two things:

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

4. Stopping SIPs When Markets Fall

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

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

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

5. Holding Too Many Funds

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

A practical portfolio for most investors looks like this:

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

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

6. Ignoring Costs

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

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

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

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

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

7. Chasing Last Year’s Returns

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

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

8. Not Researching the Fund

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

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

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

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

Why Are Mutual Funds Downright Now? Market Triggers Explained

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

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

How to Invest in Mutual Funds Through Pocketful

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

Step 1: Create Your Account

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

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

Step 2: Complete Your KYC

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

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

Step 3: Select a Mutual Fund

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

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

Step 4: Start Your SIP or Lump Sum Investment

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

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

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

Conclusion

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

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

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Frequently Asked Questions (FAQs)

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

June 6, 2026

How to Bid for an IPO in India (2026)

Whenever a new company enters the stock market and gets itself listed, it becomes very popular among the investors. Investors generally find the IPO application process confusing; therefore, understanding the IPO bidding process is essential before making any IPO application and increasing the chances of successful allotment.

In today’s blog post, we will give you an overview of IPO bidding, along with the steps on how to bid for an IPO.

What is IPO Bidding?

IPO bidding is a mechanism or process through which an investor applies for shares in an Initial Public Offering (IPO). They place bids by mentioning the quantity of shares to apply for, along with the price. During the IPO, the company provides a price band or price range within which the applicant can apply.

Key Feature of IPO Bidding

The key features of IPO bidding are as follows:

Lot Size: The IPO bidding can be placed in lots or fixed quantities defined by the companies during the IPO. Investors cannot apply for a random number of shares and can only bid in lots, and the minimum bid can be for at least one lot.
ASBA Process: ASBA or an application supported by a blocked amount is the only process through which an investor can apply for an IPO. In this process, the amount is blocked in the investor’s bank account until the completion of the allotment process.
Price Band: In the IPO process, the company announces a minimum and maximum price band, and investors can place bids within that range.
Category of Investors: IPO bidding is divided into different categories of investor groups, such as retail individual investors, non-institutional investors, etc. However, each category of investor has a reserved portion in the IPO.

How Does IPO Bidding Work

The steps of the IPO bidding process are as follows:

Announcement of IPO: Whenever the companies plan to raise funds from the public, they announce an IPO in which details such as market lot, price band, etc. are given.
Placing Bids: Investors can apply for the IPO through their broker’s platform through ASBA. For this, an investor is required to choose the quantity and price at which they want to invest.
Blocking Amount: The amount of the application is blocked in the bank account of the investor through the ASBA process. The amount will be deducted from the account only upon the allotment of shares; otherwise, it will be refunded.
Allotment of Shares: Once the entire allotment process is completed, the successful bidder will get the shares based on the subscription. If the IPO is oversubscribed, shares are allotted on the basis of a lottery system, whereas if the IPO is undersubscribed, every applicant gets the shares.
Listing of Shares: This is the last step in the entire IPO bidding process. Once the allotment is completed, shares are listed on the stock exchanges.

How to Bid for IPO

To bid for an IPO, one can follow the steps mentioned below:

Open a Demat and Trading Account: To apply for an IPO, one is required to have a demat and trading account. Pocketful offers you an opportunity to open a lifetime free demat and trading account and execute zero brokerage delivery trades.
Identify the IPO: Then, the next step is to identify the IPO in which one wishes to invest. The selection of IPO will be based on various parameters such as the objective of the issue, price band, company fundamentals, etc.
Log in to the Mobile Application: After you select the IPO, you need to log in to the mobile application provided by your broker, visit the IPO section and choose the IPO in which you wish to apply.
Enter Details: Once the IPO is selected, you need to select the category of investor, enter the desired quantity or market lot, and choose the bidding price.
Payment: After entering the details, you need to enter the UPI ID and make the payment. Once the payment is made, the amount will be blocked in your bank account through ASBA, commonly known as application supported by blocked amount.

Types of Bid Price in IPO

The two main types of IPO bids are as follows:

Cut-Off Price: This is the price at which the investor agrees to buy the shares at the final issue price, which is decided by the company after the bidding process is completed. This method of bidding is commonly used by retail investors as it increases the chance of their allotment.
Specific Price: In the specific price of bidding, the investor enters a specific price within the price band of the IPO. An investor in the specific price bidding process will receive the shares only when the final issue price decided by the company is equal or less than the bidding price. This method is generally useful for the investor who has strong market analysis.

Factors to Consider before IPO Bidding

The key factors which an investor should consider before IPO bidding are as follows:

Business Model of Company: The company’s business model plays a key role in deciding the company’s performance for IPO. If the company has a long and sustainable business model, it is expected to perform well in the long-run.
Financial Performance: The financial performance of a company, such as profit, revenue, etc., must be evaluated before making any investment in an IPO. One should conduct detailed research about the company’s financials and should opt for companies having consistent and growing profit margins, etc.
Valuation of IPO: Before opting for investing in an IPO, an investor is required to check its valuation with other listed companies of the same industry. An overvalued or expensive IPO may contain a higher risk after listing.
Objective of IPO: One must look for the objective of the company’s issue. The common objective of the company’s IPO issue is business expansion, debt repayment, and meeting the requirements of working capital.

Mistakes to Avoid During IPO Bidding

The key mistakes which an investor should avoid during the IPO bidding process are as follows:

Account Balance: IPO bidding is completed through the ASBA process, in which funds are blocked in your bank account. Therefore, if the investor is applying for an IPO, they must maintain a sufficient balance in their respective bank account.
Short-term Gains: Commonly, there is a certain category of investor who generally invests in an IPO only for the listing gains. However, one must understand that not every IPO delivers strong listing gains. Hence, one must analyse IPO for both long-term and short-term strategies.
Following Rumours: There are certain IPOs which can be overhyped on social media, and any unofficial tips related to such IPOs can cause significant loss for the investors.
Ignoring Market Conditions: If the market conditions are not favourable, then there are high chances that even good IPOs can also perform poorly. Therefore, one should consider broader market conditions before investing.

Conclusion

On a concluding note, bidding for an IPO is a simple process once you understand it. It requires checking the company’s fundamentals, the correct price for bidding, blocking funds using ASBA, etc. However, applying for an IPO using the correct bidding process does not always guarantee profit; an investor should focus on the company’s fundamentals, the objective of the IPO, etc. An investor must avoid common mistakes before applying for an IPO. And it is advisable to consult your investment advisor before making any investment in an IPO.

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Frequently Asked Questions (FAQs)

What is the cut-off price in an IPO application?
The cut-off price is the price at which an investor agrees to buy a share at the final issue price, which is decided by the company after the IPO bidding process is closed.
What is ASBA in an IPO?
ASBA is often known as Application Supported by Blocked Amount. It is a system in which the IPO amount remains blocked in the investor’s bank account until the shares are allotted to them.
What is the difference between the cut-off and bid price in an IPO?
A bid price is a specific price chosen by an investor within the price band. Whereas the cut-off price is a price which is accepted by the investor after the IPO final price is issued by the company.
What is the price band in an IPO?
A price band is a range of prices that includes a minimum and a maximum price between which an investor can apply for the IPO.
How can I apply for an IPO?
To apply for an IPO, you are required to have a demat and trading account. Pocketful offers you an opportunity to open a lifetime free demat account with zero brokerage on delivery trades. Using Pocketful’s mobile application, you can easily apply for the IPO.

June 5, 2026

How to Check IPO Allotment Status

You applied for an IPO. Now, you are waiting to find out if you got the shares. This is what basically refers to the IPO allotment status. The process of checking is very simple, and you will get all the updates. But the question is, how can you do so? Well, if you are new to trading and investing, read this to know the details.

What is IPO Allotment?

IPO allotment is the process by which shares of a company going public are distributed among investors. It is given on a certain basis to the people who actually applied for the shares during the subscription window.

Once the IPO subscription period closes, the registrar collects all valid applications. After that, it determines who receives shares and how many.

Now, there are usually two situations that happen:

Oversubscription: This means more investors applied than there are shares available. In this case, the allotment is decided through a computerised lottery or on a proportionate basis.
Undersubscription: The IPO is not fully subscribed, meaning there are more shares available than demand. This means all applicants typically receive the shares they applied for.

The entire allotment process is governed by SEBI’s ICDR Regulations, which ensure a fair, transparent, and randomised distribution of shares.

What is IPO Allotment Status?

IPO allotment status is simply the process of checking whether you are allotted the shares or not. This will help you know the number of shares allotted and their value.

Once the registrar finalises the Basis of Allotment (BOA), the allotment status becomes publicly available. This is where the investors can check it using their PAN number, application number, or DP/Client ID.

When is IPO Allotment Status Declared?

IPO allotment status is usually declared 1 to 2 working days after the IPO subscription closes. The exact timeline will be based on the registrar. But this is an average timeline that you would see for most of the IPOs.

Now, this is how the work is carried on:

Day 1 to 3: IPO subscription window is open.
Day 4 to 5: Application data sent to the registrar for validation.
Day 6: Basis of Allotment finalised; allotment status goes live.
Day 7: Shares credited to the Demat accounts of successful applicants. At the same time, the refunds are initiated for unsuccessful ones.
Day 8 to 9: Listing on stock exchanges.

Different registrars publish allotment results at different times of the day. Bigshare typically updates results around 7 PM, K Fintech around 11 PM, and MUFG Intime (formerly Link Intime) around 11:30 PM on allotment day.

Documents / Details Required to Check IPO Allotment Status

Now, when you are planning to check the allotment status, you will need to have some documents. These include:

PAN Number (most commonly used).
IPO Application Number (found on your ASBA bank receipt or UPI mandate).
DP ID / Client ID (your Demat account details).
Bank Account Number with IFSC (accepted by some registrars).

How to Check IPO Allotment Status: All Methods

There are four primary ways to check your IPO allotment status online. Each method is equally valid.

Method 1: Check IPO Allotment Status on the Registrar’s Website

Visit the official website of the registrar handling your IPO. The common ones in India are:
1. KFintech (formerly Karvy)
2. MUFG Intime (Link Intime)
3. Bigshare Services
4. Cameo Corporate Services
Look for the “IPO Allotment Status” section on the homepage.
Select the IPO name from the dropdown menu.
Choose your preferred search option: PAN Number, Application Number, or DP/Client ID.
Enter the required details carefully.
Click on “Submit” or “Search.”
Your allotment status will be displayed on screen, showing whether shares were allotted, and if so, how many.

Pro tip: If your PAN search returns “application not found,” try searching with your application number instead. Technical delays on registrar portals are common on allotment day due to high traffic.

Method 2: Check IPO Allotment Status on BSE

Visit the BSE official website.
Navigate to the “Investors” section and click on “Application Status / IPO Allotment.”
Select the IPO name from the dropdown list.
Enter your application number or PAN number in the field provided.
Complete the captcha verification if prompted.
Click on “Search.”
Your allotment details will appear on screen.

Method 3: Check IPO Allotment Status on NSE

Visit the NSE IPO verification page.
Select “Equity and SME IPO Bid Details” or “Debt IPO Bid Details” depending on your application type.
Choose the IPO name from the available options.
Enter your PAN number or application number.
Click “Get Data” or “Submit.”
Your bid and allotment information will be displayed.

Method 4: Check IPO Allotment Status on the Pocketful App

Log in to your Pocketful account on the app or web platform.
Navigate to the IPO section from the main menu.
Go to “Applied IPOs” or “IPO Status.”
Select the IPO for which you want to check the allotment.
Your allotment status, number of shares allotted, and refund details will be displayed directly within the app.

Pocketful makes IPO tracking seamless by consolidating your application details, allotment results, and Demat credit updates in one place. You will also receive push notifications and alerts once your allotment status is updated.

What Happens After IPO Allotment?

Once the allotment is finalised, here is what happens next.

If you get the shares allotted, you will be able to find them in your demat account.
If the allotment is not done which means your application is rejected. You will get a refund. This can take 1-2 working days.

Why Was My IPO Not Allotted?

There are several common reasons why an IPO application might not receive allotment:

Reason	What It Means
Oversubscription	More investors applied than the shares available, so allotment was done through a lottery system.
Invalid Application	Incorrect PAN, wrong bank details, or multiple applications using the same PAN can lead to rejection.
Insufficient Funds	The required amount was not available in the bank account for ASBA blocking.
UPI Mandate Not Approved	The UPI mandate was not approved within the given time limit.
Bid Below Cut-Off Price	The bid price was lower than the required cut-off price, making the application invalid in certain categories.

Tips to Improve Your Chances of IPO Allotment

While allotment in oversubscribed IPOs depends on luck in the retail category, here are a few strategies that may help:

Apply through multiple eligible family members to improve overall allotment chances, as each PAN is treated separately.
Apply only for the minimum lot size in the retail category, since smaller applications often have a better allotment probability in oversubscribed IPOs.
Use the ASBA facility through your bank to avoid payment or fund-blocking issues.
Recheck all details carefully before submitting.
Submit the IPO application early to avoid last-minute server issues or delays.

IPO: An Initial Public Offering is the process by which a company goes public. It offers shares to the people and raises capital.
ASBA: Application Supported by Blocked Amount is a payment system. In this, the IPO amount remains blocked in your bank account until allotment is completed.
Basis of Allotment: An official document released by the registrar. This shows how IPO shares were distributed among different investor categories.
Cut-Off Price: The final issue price at which shares are allotted to retail investors who apply at the cut-off option.
Lot Size: The minimum number of shares an investor must apply for in an IPO application.

Conclusion

Checking your IPO allotment status is simple. But it is only when you know where to look. You can use the registrar’s portal, BSE, NSE, or your broker’s platform, all of which provide real-time results after the allotment is declared. But if you are a beginner, looking for investing support, use Pocketful, where you can open a lifetime free demat account and trade without paying any brokerage on delivery based trades.

Frequently Asked Questions (FAQs)

What is IPO allotment status?
IPO allotment status refers to the outcome of your IPO application. It confirms whether you have been allotted shares or not.
How to check IPO allotment status?
You can check IPO allotment status through four main channels. These are the IPO registrar’s official website, the BSE website, the NSE website, or directly through your broker’s platform. You will need your PAN number, application number, or DP/Client ID to proceed.
When is IPO allotment status declared?
IPO allotment status is typically declared 1 to 2 working days after the IPO subscription period closes. The exact date is announced in the IPO prospectus. It is also available on the registrar’s website.
What happens if I do not get IPO allotment?
If you do not receive an allotment, the funds blocked in your account through ASBA will be automatically unblocked within 2 to 3 working days. No manual action is required from your end.
Can I check IPO allotment status using my Demat account details?
Yes. Most registrar portals and broker platforms allow you to check allotment status using your DP ID and Client ID, which together form your Demat account number, in addition to PAN and application number.

June 5, 2026

How to Open an LLP Demat Account in India: Documents & Process

Limited Liability Partnerships (LLPs) are quite common in India. They offer flexibility along with limited liability protection. As more LLPs explore market investments, opening a dedicated Demat account becomes essential.

A Demat account allows an LLP to hold and trade securities. This includes the options like stocks, bonds, ETFs, and mutual funds in electronic form. It helps maintain transparency, simplifies tracking, and keeps business investments separate from personal finances.

This guide covers the complete process of opening an LLP Demat account with Pocketful, along with the required documents.

Why Does An LLP Need A Demat Account

An LLP can invest in financial markets, but the ownership of those investments must sit with the firm, not the partners. This is where a Demat account becomes essential. It ensures that every transaction, holding, and return is recorded under the LLP’s name, keeping financials clean and compliant.

A dedicated Demat account allows the LLP to:

Hold shares, bonds, ETFs, and government securities directly in the firm’s name.
Participate in IPOs, rights issues, and other corporate actions without dependency on individuals.
Invest surplus fund in the market.
Ensure better tracking and management.
Track personal and business investments separately.
Allows for simplification of audits and taxation.
Build a structured investment portfolio aligned with the LLP’s financial goals.

Without a separate Demat account, managing investments at the firm level becomes unclear and difficult to track over time.

Eligibility To Open An LLP Demat Account

Before opening a Demat account, the LLP must meet a few basic regulatory conditions. These ensure that the entity is valid, traceable, and compliant from a financial and legal standpoint.

The LLP should:

Be registered under the Limited Liability Partnership Act, 2008
Have an active PAN issued in the name of the LLP
Be compliant with MCA filings, including annual returns and financial statements
Have a valid registered address with supporting proof

In addition to firm-level eligibility, all designated partners must complete their individual KYC. This is a mandatory step, as partners are responsible for operating and authorising transactions on behalf of the LLP.

Read Also: What is Corporate Demat Account?

Documents Required To Open An LLP Demat Account

When you apply for the LLP demat account, having proper documents is a must to avoid delays. These are at low levels, which are shared below.

Firm Level Documents

Document	Details
LLP PAN Card	Used for tax identification and must match the LLP name exactly
Certificate Of Incorporation	Proof of legal existence issued at the time of registration
LLP Agreement	Defines partner roles, responsibilities, and contribution structure
Address Proof	Bank statement or utility bill not older than 3 months
Financials	Last 2 years, audited balance sheet or CA-certified net worth certificate
Board Resolution	Authorises account opening and clearly names authorised signatories
List Of Designated Partners	On LLP letterhead with names and details
List Of Authorised Signatories	Required if different from designated partners
Contribution Pattern	Shows the capital contribution of each partner

Partner Level Documents

Document	Details
PAN Card	Mandatory for identity verification
Aadhaar Card	Used for KYC and address validation
Photograph	Recent passport-size photo
Signature	Scanned or physical as required for verification

Tip: Ensure all documents are self-attested. Firm documents should also carry the LLP seal where applicable.

Steps To Open An LLP Demat Account

Opening a Demat account for an LLP has some additional steps. The process is structured. All you need to do is ensure that the verification completes in time. The steps to follow are:

Step 1: Contact The Broker Or Depository Participant

Begin by reaching out to the broker or depository participant for a non-individual account opening request. LLP Demat accounts usually require a separate onboarding process, so direct coordination with the support or onboarding team is generally needed.

Step 2: Prepare And Verify Documents

Collect all firm and partner documents. Ensure that this is as per the checklist. Ensure names, addresses, and signatures match across all records to avoid delays during verification.

Step 3: Submit The Application

Fill out the account opening form and submit it along with supporting documents. This may be done digitally or through an assisted process, depending on the case.

Step 4: Complete In-Person Verification

IPV is mandatory for LLP accounts. This can be done through a video call or physical verification. The authorised signatory must be present with the original documents.

Step 5: Complete Partner KYC

Each designated partner must complete individual KYC. This includes PAN verification, Aadhaar validation, and identity confirmation as per regulatory requirements.

Step 6: Account Activation

Once all checks are completed, the account is activated. Login credentials and trading access are shared, allowing the LLP to start investing.

Tips To Avoid Rejection

Most LLP Demat account applications get delayed due to small errors. A careful review before submission can help you avoid rejection and speed up approval. Some of the tips to follow are:

Ensure the LLP name is correct on all the documents, like PAN, incorporation certificate, and bank records.
Ensure the details of the partners are correct.
Check the names and rest details before applying.
Draft the Board Resolution clearly.
Have authorised signatories and their roles defined.
Ensure proofs are the latest and no longer than 3-6 months old.
Submit clear, readable document scans without cuts or blur.
Sign and stamp all required documents properly before submission.
Complete KYC for all designated partners without leaving any pending steps.

Conclusion

Opening a Demat account for an LLP is more about getting the basics right than dealing with a complex process. Once your documents are in order and partner KYC is complete, the rest moves smoothly.

With Pocketful, the process is guided and structured, making it easier for LLPs to start investing without confusion. From equities to ETFs and beyond, your firm can build and manage its portfolio with clarity and control.

If you are planning to put your business funds to work, this is the first step. Get started with Pocketful and set up your LLP Demat account today.

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1	Top 10 Demat Account in India
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3	Demat Account: Fees & Charges
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5	Features and Benefits of Demat Account
6	Types of Demat Accounts in India
7	How to Use a Demat Account?
8	How to Buy Shares through a Demat Account?
9	Joint Demat Account
10	BSDA – What is a Basic Service Demat Account?

Frequently Asked Questions (FAQs)

Can An LLP Open A Demat Account In India?
Yes, an LLP is treated as a separate legal entity and can open a Demat account in its own name. The account must be linked to the LLP’s PAN, and all designated partners are required to complete KYC as part of the process.
How Many Partners Need To Complete KYC?
All designated partners must complete individual KYC. These partners are responsible for authorising and operating the account, even if only a few are assigned as signatories in the Board Resolution.
Is A Board Resolution Mandatory For Opening The Account?
Yes, a Board Resolution is a mandatory document. It formally authorises the LLP to open a Demat account and clearly defines who can operate it on behalf of the firm.
What If The LLP Does Not Have Financial Statements?
If the LLP is newly formed and does not have audited financials, a net worth certificate issued by a Chartered Accountant can be submitted instead.
Can An LLP Trade In F And O Segments?
Yes, once the account is activated, an LLP can trade in equity delivery, intraday, and derivatives. This depends on the segments enabled and regulatory requirements.

June 4, 2026

Forex vs Stock Market: Key Differences

When comparing the forex vs stock market, the real question is not just returns but how each market works for you. Forex is the largest and most liquid market and operates on longer hours.

Stocks, on the other hand, are tied to company performance. These are often preferred for steady growth. So, which market is best for trading?

Forex are usually good for short-term opportunities but stocks are for long-term wealth building. Understanding the difference between forex and stock market is not optional. It is the first step to choosing the right strategy instead of chasing quick profits.

Difference Between Forex And Stock Market

When you look at forex vs stocks, the confusion usually comes from one thing. Both look similar on the surface, but they behave very differently once you start trading. So instead of just listing points, let’s break the difference between forex and stock market in a way that actually helps you decide.

Forex Vs Stock Market Quick Comparison

Factor	Forex Market	Stock Market
What You Trade	Currency pairs which include INR pairs like USD-INR or EUR-INR, and Cross pairs like EUR-USD, GBP-USD, ot USD-JPY	Company shares
Core Idea	Exchange value between currencies	Ownership in businesses
Market Timing	INR pairs: 9AM-5PM ISTCross: 9AM-7:30PM IST	9:15AM-3:30PM IST
Liquidity	Extremely high	High in large caps, lower in others
Volatility	Fast and frequent	Slower, event-driven
Leverage	Up to 1:20 (RBI limits)	1:5 intraday (SEBI)
Best Use	Short-term trading	Both trading and investing
Regulation	RBI/SEBI, no speculative abroad	SEBI fully regulated

1. Meaning And Core Idea

Forex trading is about exchanging currencies in pairs like USD/INR or EUR/USD. When you take a position, you are betting on the relative strength of one economy against another. There is no asset ownership here, only price movement.

Stock trading works differently. You buy shares of a company and become a partial owner. Your returns depend on how that business performs over time, along with market sentiment.

This makes the difference between forex and stock market very clear. Forex is macro-driven, while stocks are business-driven.

2. Regulations And Conditions

Forex trading in India is tightly controlled by Reserve Bank of India and Securities and Exchange Board of India. You can only trade specific currency pairs on recognised exchanges, and international speculative trading is restricted. This limits exposure but also reduces misuse.

Stock markets are fully regulated by Securities and Exchange Board of India, with a broader and more transparent framework. Investors have access to a wide range of companies without such restrictions.

So in forex vs stocks, stocks offer easier access, while forex comes with tighter boundaries.

3. Timings And Asset Options

Forex trading offers extended hours because currency markets operate globally. In India, you can trade INR pairs during the day and cross pairs into the evening. This flexibility allows you to participate even outside standard market hours.

Stock markets operate within fixed timings, typically 9:15 AM to 3:30 PM IST. While this limits flexibility, it also creates discipline. It reduces the need for constant monitoring.

In terms of options, forex mainly focuses on currency pairs. Stocks offer a wider universe, including companies across sectors, indices, and ETFs.

4. Risk And Volatility

Forex markets react quickly to global economic changes. There are impact of small things such as interest rates, inflation data, or geopolitical events. This results in frequent price movements. This can create opportunities but also increase the chance of sudden losses.

Stock prices are influenced by company performance mainly. Other factors that impact are the earnings reports and industry trends. While volatility exists, especially in smaller stocks, large-cap stocks tend to move in a more stable and predictable manner.

In the forex vs stock market comparison, forex demands faster decisions, while stocks allow more time to analyse.

5. Liquidity And Leverage

Forex is the most liquid market globally. This means trades can be executed quickly without major price changes. This is especially true for major currency pairs, where volumes are consistently high.

Stocks vary in liquidity. Large-cap stocks are easy to trade, but smaller stocks may have lower volumes, which can impact entry and exit prices.

Forex also offers higher leverage compared to stocks. This allows traders to take larger positions with less capital, but it also increases the risk of amplified losses.

6. Trading Strategies

Forex trading is primarily used for short-term strategies. Traders focus on intraday, scalping, and swing trading to capture small but frequent price movements. This requires active monitoring and quick execution.

Stock trading is more flexible. You can trade short-term or invest long-term based on company fundamentals. Many investors use stocks for wealth creation through compounding over time.

This is a key distinction in forex vs stocks. Forex is suited for active trading, while stocks support both trading and long-term investing.

Which Market Is Best For Trading

The forex vs stocks decision becomes clear when you match each market with how it actually works in practice. Here is a clean breakdown without overcomplication.

Stocks Are Better When

Long-term wealth creation is a priority along with trading
Returns should not depend entirely on perfect timing
Fewer, well-planned trades are preferred over frequent activity
Lower risk is important due to limited leverage
Limited time is available to track markets daily
Investment is based on real businesses and earnings growth

Forex Is Better When

Focus is on short-term trading and quick price movements
Fast decision-making and active participation are comfortable
Markets can be tracked consistently for longer hours
High leverage and its risks are clearly understood
Frequent trades and intraday strategies are preferred
No reliance on long-term holding or compounding

Final Answer

Stocks suit most traders because they combine growth, flexibility, and controlled risk
Forex suits a smaller group of traders who are comfortable with speed, discipline, and high-risk execution

How To Invest In Stock Market

The process for trading and investing in the stock market is simple. The difference depends on your goals, risk appetite, and investment horizon.

Step 1. Open A Trading & Demat Account

Open a trading and Demat account with a broker like Pocketful. This gives access to invest and trade in the stock market.

Step 2. Complete KYC

Complete KYC by submitting PAN, Aadhaar, and bank details. Once verified, your account becomes active and ready for trading.

Step 3. Add Funds

Transfer funds to your trading account. The same capital is used in both markets, but its role changes based on what you choose next.

Step 4. Choose The Market

Choose investing if your focus is long-term wealth creation through quality companies.
Choose trading if your focus is on short-term price movements and market opportunities.

Step 5. Place The Trade

Execute a buy or sell order based on your strategy. Stocks can be held or traded depending on your plan, while currency trades are usually margin-based and shorter in duration.

Step 6. Track And Exit

Monitor your portfolio and positions regularly. Exit based on your financial goals, target price, or risk management strategy.

Read Also: ETF vs Index Fund: Key Differences

Conclusion

The forex vs stocks choice comes down to how returns are generated and how much control you have over time and risk. Stocks allow participation in business growth. Forex depends entirely on price movement.

For most traders, stocks offer a more balanced path with flexibility and long-term potential. Forex fits better when the focus is on short-term trading with active monitoring.

To get started, open your account with Pocketful. Then explore both segments to understand which is better for you. Build your approach and strategies based on your trading style and start building your portfolio.

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Frequently Asked Questions (FAQs)

Which market is better for trading, forex or stocks?
Stocks are better for most traders because they offer both growth and flexibility. Forex is suited for short-term trading with higher risk and faster execution.
Can beginners start with forex trading?
Yes, beginners can do forex trading. But stocks are usually easier to understand and manage. Forex requires strong discipline and quick decision-making.
Is forex trading riskier than stock trading?
Forex can be riskier due to higher leverage and faster price movements. Stocks generally offer more controlled risk in long-term investing.
Is long-term investing possible in forex?
No, forex is mainly used for short-term trading. Currencies do not grow like businesses, so long-term compounding does not apply.
Can both forex and stock trading be done together?
Yes, both can be accessed through a single trading account if the broker supports multiple segments.

June 4, 2026

CMR Green Technologies IPO Allotment Status: Check Latest GMP, Steps to Verify Status

CMR Green Technologies IPO Day 3 Subscription Status

On Day 3, CMR Green Technologies. IPO witnessed a strong investor turnout, closing with an overall subscription of 2.31 times. The QIB category led the demand, The Qualified Institutional Buyers (QIB) 270.46 times subscription Overall, indicating solid institutional participation. Among Non-Institutional Investors (NII), the bNII (above ₹10 lakh) portion was subscribed 187.21 times, while the sNII (less than ₹10 lakh) segment saw 142.42 times subscription. The Retail Individual Investors (RII) category was subscribed 26.90, reflecting healthy retail interest. The Total NII Subscription among second Highest with 172.28, the issue garnered 33,59,866 applications, with total bids amounting to approximately 56,173.51 crore, showcasing strong confidence across investor categories in the company’s growth potential.

Investor Category	Subscription (x)
Qualified Institutional Buyers (QIB)	270.46
Non-Institutional Investors (NII)	172.28
bNII (above ₹10 lakh)	187.21
sNII (less than ₹10 lakh)	142.42
Retail Individual Investors (RII)	26.90
Total Subscriptions	126.96

Total Applications: 33,59,866

Total Bid Amount (₹ Crores): 56,173.51

How to Check CMR Green Technologies IPO Allotment Status?

CMR Green Technologies IPO allotment can be easily checked online in two ways: from the Registrar’s website and from the BSE or NSE website. This IPO will be listed on both the exchanges – BSE and NSE, so the allotment status will be available to all investors on both platforms.

Method 1: Registrar’s website (KFin Technologies Limited)

The most reliable way is to check allotment from the KFin Technologies Limited website.

How to do:

Visit KFin Technologies Limited official website
Select “CMR Green Technologies” from the IPO list
Enter your details PAN number, Application number, or DP/Client ID
Click on Submit
You will see the allotment status on the screen.

Method 2: Check from BSE or NSE’s website

If there is more traffic on the registrar’s website, allotment status can also be checked from BSE or NSE.

How to do:

Visit BSE or NSE’s official website
Select ‘Equity’ segment
Select “CMR Green Technologies IPO” from the IPO list
Enter PAN number and Application number
Click on Search

Objective of the CMR Green Technologies IPO

For CMR Green Technologies IPO, the issue is a 100% Offer for Sale (OFS) with no fresh issue component. Therefore, the company will not receive any proceeds from the IPO. The entire proceeds of approximately ₹630.88 crore will be received by the selling shareholders after deducting applicable expenses and taxes.

Use of IPO Proceeds	Amount (₹ Cr)
Proceeds to be received by selling shareholders through Offer for Sale (OFS)	630.88

CMR Green Technologies – Day 1 Update

The grey market premium (GMP) of the CMR Green Technologies stands at ₹77 as of June 05, 2026 (Day 3). Considering the upper end of the price band at ₹192 per share, the estimated listing price is around ₹269, reflecting a potential gain of approximately 40.10% per share in the grey market.

Date	GMP	Est. Listing Price	Gain
05-06-2026 (Day 3)	₹77	₹269	40.10%

Disclaimer: The above GMP (Grey Market Premium) is just unofficial market information, which is not officially confirmed. These figures are shared for informational purposes only and investment decisions based on these should be based on the investor’s own research and discretion. We do not conduct, recommend or support any kind of transaction in the grey market.

CMR Green Technologies IPO – Key Details

Particulars	Details
IPO Opening Date	June 03, 2026
IPO Closing Date	June 05, 2026
Issue Price Band	₹182 to ₹192 per share
Total Issue Size	3,28,58,323 shares (aggregating up to ₹631 Cr)
Listing Platform	BSE, NSE
Registrar	KFin Technologies Limited
CMR Green Technologies	CMR Green Technologies

Important Dates for CMR Green Technologies IPO Allotment

Event	Date
Tentative Allotment	June 8, 2026
Refunds Initiation	June 9, 2026
Credit of Shares to Demat	June 9, 2026
Listing Date	June 10, 2026

Overview Of CMR Green Technologies

CMR Green Technologies Limited is one of India’s leading non-ferrous metal recycling companies, specializing in recycled aluminium alloys, zinc alloys, and other value-added metal products. The company primarily serves the automotive, engineering, and industrial sectors through its network of manufacturing facilities across India. By converting metal scrap into high-quality recycled products, CMR promotes sustainable manufacturing and supports the circular economy. With growing demand for lightweight automotive components and environmentally friendly materials, the company has established a strong presence in India’s aluminium recycling industry and continues to expand its market position.

Frequently Asked Questions (FAQs)

What is the opening and closing date of CMR Green Technologies IPO ?
CMR Green Technologies IPO is open on 03 June 2026 and will close on 05 June 2026.
What is the price band of the CMR Green Technologies IPO ?
Its price band is fixed from ₹182 to ₹192 per share.
What is the GMP (Grey Market Premium) of CMR Green Technologies IPO today?
The GMP on 05 June 2026 is ₹77, which leads to a possible listing price of ₹269.
What is the total issue size of CMR Green Technologies IPO?
The total issue size of the CMR Green Technologies IPO is ₹630.88 crore, The IPO is entirely an Offer for Sale (OFS) of 3.29 crore equity shares by existing shareholders, and therefore, the company will not receive any proceeds from the issue.
What is the expected listing date of CMR Green Technologies?
This IPO is expected to be listed on BSE and NSE on June 10, 2026.

June 3, 2026

Oldest Mutual Funds in Indial Funds in India

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

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

Which Is the Oldest Mutual Fund in India?

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

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

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

A Brief History of Mutual Funds in India

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

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

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

The industry evolved in four broad phases:

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

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

Read Also: Best SIP Mutual Funds in India

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

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

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

Overview of Oldest Mutual Fund Schemes in India

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

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

Key highlights:

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

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

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

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

Key highlights:

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

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

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

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

Key highlights:

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

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

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

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

Key highlights:

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

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

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

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

Key highlights:

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

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

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

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

Key highlights:

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

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

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

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

Key highlights:

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

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

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

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

Key highlights:

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

What Makes These Old Mutual Funds Still Relevant?

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

Here’s what decades of operation actually mean:

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

Key Things to Check Before Investing

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

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

Benefits of Investing in Old Mutual Funds in India

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

Limitations to Keep in Mind

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

How to Invest in Mutual Funds Through Pocketful

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

Step 1: Create Your Account

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

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

Step 2: Complete Your KYC

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

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

Step 3: Select a Mutual Fund

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

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

Step 4: Start Your SIP or Lump Sum Investment

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

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

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

Conclusion

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

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

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

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Frequently Asked Question (FAQs)

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

June 3, 2026

Best Value Oriented Mutual Funds in India 2026

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

Understanding Value Investing

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

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

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

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

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

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

1. ICICI Prudential Value Discovery Fund

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

2. HSBC Value Fund

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

3. Nippon India Value Fund

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

4. HDFC Value Fund

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

5. Tata Value Fund

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

6. Bandhan Value Fund

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

7. Aditya Birla Sun Life Value Fund

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

8. Kotak Contra Fund

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

9. Templeton India Value Fund

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

10. JM Value Fund

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

Why Invest in Value Oriented Mutual Funds in 2026?

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

Features of Value Oriented Mutual Funds

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

Advantages of Investing in Value Funds

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

Risks Associated with Value Mutual Funds

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

Factors to Consider Before Investing in Value Mutual Funds

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

Taxation of Value Oriented Mutual Funds in India

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

Conclusion

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

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

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Frequently Asked Questions (FAQs)

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

June 3, 2026

Best Aggressive Hybrid Mutual Funds in India 2026

Traditional investors generally look for investment options that can provide them with better returns than a fixed deposit. An aggressive hybrid mutual fund can be a suitable choice for them as it balances the risk and return in the portfolio.

In today’s blog post, we will give you an overview of aggressive mutual funds, along with the best aggressive hybrid mutual funds to invest in India in 2026.

What are Aggressive Hybrid Mutual Funds?

An aggressive hybrid mutual fund is a category of mutual fund that invests primarily in equity and debt securities. Based on the guidelines issued by the Securities and Exchange Board of India (SEBI), the aggressive hybrid funds usually invest around 65% to 80% of their assets in equity and related instruments, whereas the remaining 20% to 35% will be invested in debt instruments. This helps an investor in managing growth and stability in their investment portfolio.

Best Aggressive Hybrid Mutual Funds to Invest in India 2026

The list of the best aggressive hybrid mutual funds to invest in India 2026 is as follows:

Scheme Name	AUM (Cr.)	1 Year	3 Years	5 Years
SBI Equity Hybrid Reg Gr	83,353.48	4.26	13.75	11.34
ICICI Pru Equity & Debt Gr	50,367.73	3.13	16.7	16.89
Mirae Asset Aggressive Hybrid Reg Gr	9,363.48	3.28	12.16	10.68
Kotak Aggressive Hybrid Fund Reg Gr	8,641.94	4.76	13.77	12.29
HSBC Aggressive Hybrid Fund Reg Gr	5,423.98	6.59	13.92	10.9
Edelweiss Aggr Hybrid Reg Gr	3,627.22	1.85	14.58	13.62
Quant Aggressive Hybrid Fund Gr Reg Plan	2,024.48	9.93	14.69	13.73
Bandhan Aggr Hyb Fund Reg Gr	1,919.11	7.1	14.44	12.27
Bank of India Mid & Small Cap Equity & Debt Reg Gr	1,481.51	8.65	20.11	16.78
Navi Aggressive Hybrid Reg Gr	110.85	4.36	11.39	10.47

(Data as of 24th May 2026)

Advantages of Investing in Aggressive Hybrid Funds

The key advantages of investing in aggressive hybrid funds are as follows:

Balanced Approach: Investment in aggressive hybrid funds offers the advantage of risk and return. Equity allocation in the portfolio allows an investor to take advantage of high equity returns, whereas debt in the portfolio provides stability during market downturns.
Diversification: The hybrid aggressive fund provides the benefit of diversification of the portfolio across different asset classes. It reduces the overall risk in the portfolio because poor performance in one asset class may be balanced by the other.
Professional Management: As a professional fund manager manages the mutual fund, they actively decide the allocation between the equity and debt depending upon the market conditions.
Monthly Investments: One can easily invest a small amount through monthly investments in hybrid aggressive funds. SIPs provide the benefit of rupee cost averaging and reduce the impact of market volatility.

Features of Aggressive Hybrid Mutual Funds

The key features of aggressive hybrid mutual funds are as follows:

Equity for Growth: Equity allocation in the portfolio allows an investor to capture the growth of equity in their portfolio. This helps in increasing the returns in the portfolio.
Stability: The debt component in the portfolio of hybrid aggressive mutual funds provides stability in the portfolio and reduces the volatility during market fluctuations.
Capital Gains: The gains arising from investment in hybrid aggressive mutual funds are not taxed based on the investor’s income slab. They are taxed based on the capital gain rules laid down by the income tax authorities.
Flexibility: Aggressive hybrid mutual funds come with flexible investment options such as lump sum and SIPs. Hence, one can choose an investment mode depending on their needs.
Liquidity: There is no lock-in period while investing in hybrid aggressive mutual funds. Hence, one can easily withdraw their funds based on their need.

Factors to Consider While Investing in Aggressive Hybrid Funds

There are certain factors that an investor should consider before investing in an aggressive hybrid fund; a few of these factors are mentioned below:

Investment Objective: Before investing in any hybrid aggressive fund, investors are required to identify their financial objective first. Investment in aggressive hybrid funds is often suitable for medium-term goals with a duration of 3-5 years.
Risk Tolerance: As a hybrid aggressive fund invests a certain portion of its portfolio in equity, this carries market risk. Hence, the performance of funds can be volatile in the short-term period. Therefore, only investors who are comfortable with short-term market fluctuations can invest in aggressive hybrid funds.
Asset Allocation: Based on the investment guidelines laid down by the SEBI, the fund can change its equity and debt allocation based on the market conditions. Hence, one should review how the fund balances their portfolio so that the expected returns match their expectation.
Past Performance: One must conduct a detailed analysis of the past performance of the fund over different market cycles. This helps an investor in analysing how a fund performs during different market cycles.

Who Should Invest in Aggressive Hybrid Mutual Funds

Certain types of investors should invest in Aggressive Hybrid Mutual Funds; a few of such investors are as follows:

First-Time Investor: Investors who do not have any experience investing in equity can consider a hybrid aggressive fund as an investment option. The debt portion in the portfolio helps in reducing the overall risk in the portfolio and provides stability during market volatility.
Long Investment Horizon: Investors with an investment horizon of 3 to 5 years can opt for investing in hybrid aggressive category funds. As the fund creates wealth in the long run, it is suitable for an investment horizon of up to 5 years.
Better than FD Returns: Those who are seeking investment options better than fixed deposits can opt for investing in hybrid aggressive funds. These funds potentially earn higher inflation-beating returns.
Balanced Approach: Investors who have a balanced approach to investing and do not want to take high risk can invest in hybrid aggressive funds. Aggressive hybrid funds offer a mix of equity for growth and debt for stability, hence making them suitable for balanced investing.

Conclusion

On a concluding note, investment in an aggressive hybrid mutual fund can be a suitable investment option for those investors who prefer a balance between growth and stability. Investment in this fund offers an opportunity to earn better returns than traditional investment options, such as fixed deposits, etc. The debt allocation in the portfolio of aggressive hybrid mutual funds provides stability in the portfolio in case of market volatility, and equity allocation manages the growth. However, these funds also carry certain risks; therefore, it is advisable to consult your investment advisor before making any investment in an aggressive hybrid fund. For more market insights and investment opportunities, start your mutual fund journey with Pocketful. Explore a wide range of mutual funds through an easy-to-use platform designed for both new and experienced investors.

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Frequently Asked Questions (FAQs)

What are aggressive hybrid mutual funds?
An aggressive hybrid mutual fund is a category of hybrid mutual fund that invests a smaller portion of its portfolio in debt or fixed income securities, whereas the larger portion invests in equity and equity-oriented securities.
Does investment in an aggressive mutual fund provide guaranteed returns?
No, investment in an aggressive mutual fund does not offer guaranteed returns. The portfolio of these funds carries securities returns that are linked to the market.
What is the maximum percentage that aggressive hybrid funds invest in equity?
Based on the regulation laid down by the Securities and Exchange Board of India (SEBI), the aggressive hybrid funds can invest around 65% to 80% in equities, whereas the remaining amount can be invested in debt instruments.
Can I invest through SIP in an aggressive hybrid mutual fund?
Yes, one can invest in an aggressive hybrid mutual fund through SIP and lump sum.
Is there any lock-in period in an aggressive hybrid mutual fund?
No, aggressive hybrid mutual funds do not have any lock-in period. They are open-ended funds; one can invest and withdraw anytime from this fund.

June 2, 2026

What is a Best Currency ETFs in India

Investing in domestic stocks and companies is interesting but have you ever wondered about the world of global investing? In the stock market people also invest in foreign currencies like the US Dollar or Euro. A currency etf is a simple way to do this. These funds let you buy and sell foreign currencies just like regular shares. Today, finding a good currency etf in India is becoming a very hot topic. Why are currency etfs becoming popular among Indian investors? They offer a great way to protect your money from local market drops. They also help you diversify your portfolio easily without needing complex trading accounts. In this blog we will look upon how currency ETFs investments.

Understanding Currency ETFs

A currency exchange traded fund is a special type of investment that tracks the value of a foreign currency. When you buy its shares, you are basically investing in that specific global currency. This means your investment value moves up or down based on the actual exchange rate.

Before that time, only big banks and rich investors could easily trade foreign exchange. The introduction of the first Euro fund changed the game for regular investors completely. It made buying foreign money as simple as buying a share of a company.

They were created to help regular people invest in global currencies safely and easily. Before these funds, trading forex was very risky and hard to understand for a normal person. Now anyone with a brokerage account can take part in the global currency market with full transparency.

How Currency ETFs Work

These funds are usually built in two main ways. Some funds actually hold real cash deposits of the foreign money in a secure bank. Other funds use special financial contracts called futures to track the currency value without holding the physical cash.

The price of the fund moves up and down based on the live exchange rate. If the US Dollar becomes stronger against the Indian Rupee, the price of a US Dollar fund will go up. You can check these prices anytime during normal market hours.

Let us say you buy shares of a Euro fund today. If the Euro gains value over the next month, your shares become more valuable. You can then sell them for a profit just like normal stocks. This gives you a clear and simple way to earn from currency changes.

Types of Currency ETFs

1. Single Currency ETFs

These funds track only one specific foreign currency at a time. For example, you can buy a fund that only follows the US Dollar or the British Pound. This is great if you have a strong belief about one particular country.

2. Multi-Currency ETFs

These funds track a basket of different currencies all at once. They give you wider exposure to the global market instead of relying on just one nation or currency. This helps spread your risk across multiple economies.

3. Developed Market Currency ETFs

These focus entirely on strong and stable currencies from rich countries. Examples include the Euro, the US Dollar, and the Swiss Franc. They are generally considered much safer than funds tracking smaller, developing nations.

Read Also: Best ETFs in India

Benefits of Investing in Currency ETFs

Easy Access to Foreign Currency Markets: You do not need to open complex forex accounts anymore. You can buy these funds directly through your normal stock broker. This saves you a lot of time and documentation.
Lower Investment Cost: Buying foreign money directly can involve high hidden fees. These funds usually have very low expense ratios. This makes them a much cheaper option for you in the long run.
High Liquidity: You can buy or sell your shares at any time during market hours. This means your money is never locked up when you urgently need it. You have full control over your cash flow.
Transparency: These funds publish their holdings and prices every single day. You always know exactly what you own and how much it is worth. There are no secret charges or hidden assets to worry about.

Risks Associated with Currency ETFs

Exchange Rate Volatility: Currency values can change very quickly. If the foreign money loses value, the price of your fund will also drop. You must be prepared for these rapid market swings.
Geopolitical Risks: Changes in the global scenarios like wars, sudden elections, or trade disputes can severely hurt a country’s money. This political trouble can quickly lower your investment value. You should always watch the global news.
Interest Rate Risk: When a country changes its bank interest rates, its currency value usually shifts. Lower interest rates can make that money less attractive to hold. This will cause the fund price to go down.
Tracking Error Risk: Sometimes a fund does not perfectly match the actual currency value. This happens more often in funds that use futures contracts instead of real cash. You might earn slightly less than the actual currency growth.
Liquidity Risk: While most top funds are easy to sell, some smaller funds might not have enough buyers. This could make it hard to sell your shares at a good price. Always pick funds with high trading volumes.

Read Also: What are International ETFs?

How to Invest in ETFs

Here is a step by step guide on how you can start investing today.

Step 1: You need to open a Demat and trading account. You need a broker that allows international investing from India.
Step 2: Select a Suitable Investment Platform and look for platforms offering zero brokerage and low foreign exchange markup fees. This smart choice will save you a lot of money in the long run.
Step 3: Read about different funds and decide which country’s money you want to hold and do a proper research for these currency ETFs. Look closely into their specific investment goals and potential risks.
Step 4: Compare Key Metrics like AUM, Expense Ratio, Liquidity, Historical Returns and choose funds with high Assets Under Management and low fees. This ensures you can sell your shares easily without paying too much.
Step 5: Place Your Investment Order and use the Liberalized Remittance Scheme to send money safely to your global broker. Then simply search for the fund ticker symbol and click buy.
Step 6: Keep an eye on global news and central bank policy updates so that you can monitor and rebalance your investments. You may need to shift your investments if the global market changes significantly.

Investors cannot invest directly in U.S. markets through direct funds, but they can gain exposure through international mutual funds or ETFs such as the Mirae Asset NYSE FANG+ ETF and Motilal Oswal Nasdaq 100 Fund. These investment options may also offer additional benefits if the USD strengthens against the INR.

Taxation of Currency ETFs in India

Understanding taxes is very important before you start investing. Here is crisp information in pointers regarding tax rules.

Tax Treatment of Domestic ETFs: If you buy a domestic fund with more than 65 percent debt or currency, it is taxed at your regular income slab rate. This rule applies no matter how long you hold the investment.
Taxation of International Currency ETFs: If you buy foreign funds like UUP or FXE, the rules are slightly different. If you hold them for less than 24 months, the profits are added to your income and taxed at your slab rate. If you hold them for more than 24 months, your profits are taxed at a flat 12.5% rate. Please note that there is no longer any indexation benefit for these foreign funds.

Read Also: Best Commodity ETFs in India

Conclusion

Stepping into the global currency market can be an exciting journey for you. It offers a fresh way to balance your portfolio and explore international opportunities. While there are some risks like exchange rate drops, the ease and low cost of these funds make them highly appealing. Make sure you do your proper research and pick the fund that fits your personal goals.

For more market news and insights, download Pocketful, offering users zero brokerage on delivery trades and an easy to use platform designed for both beginners and experienced investors.

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Frequently Asked Questions (FAQs)

What is the minimum amount required to invest in currency funds?
You can often start with very small amounts if your broker allows fractional shares. Many international brokers let you invest with just a few dollars, making it highly accessible.
Are these funds safe for beginners?
Like all investments, they carry some risks due to natural market changes. However, they are much simpler and safer than direct forex trading, making them a very good starting point.
Do I need a special forex account?
No, you do not need a complex forex trading account. You can easily buy these funds through a standard demat and trading account that supports global investing.
What happens if the US Dollar drops in value?
If you own a US Dollar bullish fund, its price will drop when the Dollar loses its value. Your investment directly follows the ups and downs of that specific currency in the global market.
How is the tax calculated if I sell within a year?
If you sell an international currency fund within a year, the profit is treated as a short term capital gain. This amount is simply added to your total income and taxed according to your usual tax slab.

June 2, 2026

Blog

Top Reasons Why Mutual Funds Are Going Down in 2026

Can You Actually Lose Money in Mutual Funds?

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

Real Reasons Why People End Up With Mutual Fund Loss

1. Buying High, Selling Low

2. No Investment Horizon in Mind

3. Wrong Fund for Your Risk Appetite

4. Stopping SIPs When Markets Fall

5. Holding Too Many Funds

6. Ignoring Costs

7. Chasing Last Year’s Returns

8. Not Researching the Fund

Why Are Mutual Funds Downright Now? Market Triggers Explained

How to Invest in Mutual Funds Through Pocketful

Step 1: Create Your Account

Step 2: Complete Your KYC

Step 3: Select a Mutual Fund

Step 4: Start Your SIP or Lump Sum Investment

Conclusion

Frequently Asked Questions (FAQs)

Why are mutual funds going down recently?

Why are all mutual funds going down today?

Is mutual fund loss permanent?

Should I stop my SIP when mutual funds are down?

How can I reduce mutual fund loss?

Are Mutual Funds Safe for Beginners?

How to Bid for an IPO in India (2026)

What is IPO Bidding?

Key Feature of IPO Bidding

How Does IPO Bidding Work

How to Bid for IPO

Types of Bid Price in IPO

Factors to Consider before IPO Bidding

Mistakes to Avoid During IPO Bidding

Conclusion

Frequently Asked Questions (FAQs)

What is the cut-off price in an IPO application?

What is ASBA in an IPO?

What is the difference between the cut-off and bid price in an IPO?

What is the price band in an IPO?

How can I apply for an IPO?

How to Check IPO Allotment Status

What is IPO Allotment?

What is IPO Allotment Status?

When is IPO Allotment Status Declared?

Documents / Details Required to Check IPO Allotment Status

How to Check IPO Allotment Status: All Methods

Method 1: Check IPO Allotment Status on the Registrar’s Website

Method 2: Check IPO Allotment Status on BSE

Method 3: Check IPO Allotment Status on NSE

Method 4: Check IPO Allotment Status on the Pocketful App

What Happens After IPO Allotment?

Why Was My IPO Not Allotted?

Tips to Improve Your Chances of IPO Allotment

Key Terms Related to IPO Allotment Status

Conclusion

Frequently Asked Questions (FAQs)

What is IPO allotment status?

How to check IPO allotment status?

When is IPO allotment status declared?

What happens if I do not get IPO allotment?

Can I check IPO allotment status using my Demat account details?

How to Open an LLP Demat Account in India: Documents & Process

Why Does An LLP Need A Demat Account

Eligibility To Open An LLP Demat Account

Documents Required To Open An LLP Demat Account

Firm Level Documents

Partner Level Documents

Steps To Open An LLP Demat Account

Step 1: Contact The Broker Or Depository Participant

Step 2: Prepare And Verify Documents

Step 3: Submit The Application

Step 4: Complete In-Person Verification

Step 5: Complete Partner KYC

Step 6: Account Activation

Tips To Avoid Rejection

Conclusion

Frequently Asked Questions (FAQs)

Can An LLP Open A Demat Account In India?