Mutual Funds

What are mutual funds?

A mutual fund is an investment vehicle in which an Asset Management Company (AMC) or fund house pools money from multiple individual and institutional investors who share common investment objectives.

The pooled investments are managed by a professional fund manager, who invests in securities such as stocks and bonds in accordance with the fund’s investment mandate.

Mutual funds offer individual investors an opportunity to access a professionally managed portfolio. They also help diversify investments across multiple financial instruments, depending on the fund’s asset allocation.

Investors receive fund units in proportion to the amount they invest. Consequently, the profits or losses they experience are proportional to their investment.

The primary objective of a fund manager is to generate optimal returns by investing in securities aligned with the fund’s objectives. However, the performance of a mutual fund depends on its underlying assets and the associated market risks.

Who Should Invest in Mutual Funds?

Mutual funds may be suitable for investors seeking exposure to a professionally managed investment portfolio, diversification, and investment options aligned with their financial goals, risk tolerance, and investment horizon.

Categories of Mutual Funds

Mutual funds in India are classified into various categories, including:

• Equity Funds: Large-cap, mid-cap, small-cap, flexi-cap, multi-cap, ELSS, sectoral/thematic, value, and contra funds.
• Debt Funds: Overnight, liquid, short-duration, corporate bond, gilt, and credit-risk funds.
• Hybrid Funds: Conservative hybrid, aggressive hybrid, balanced advantage, multi-asset allocation, arbitrage, and equity savings funds.
• Solution-Oriented Funds: Retirement and children’s funds.
• Other Funds: Index funds, Exchange-Traded Funds (ETFs), and Fund of Funds (FoFs).

Key Features of Mutual Funds

• Minimum Investment: Some mutual fund schemes allow investments through Systematic Investment Plans (SIPs) starting at ₹100–₹500, depending on the scheme.
• Liquidity: Open-ended mutual funds generally allow redemption on business days, with proceeds typically credited within 1–3 working days, subject to the scheme’s terms and applicable settlement timelines.
• Lock-in Period: Equity Linked Savings Schemes (ELSS) have a mandatory three-year lock-in period for each investment.
• Key Risks: Mutual funds are subject to market risk, credit risk (particularly in debt funds), interest-rate risk, and sectoral concentration risk.
• Taxation: Tax treatment depends on the fund category, investment type, and holding period. We would be happy to discuss the applicable tax implications during a personal meeting.

Where Does GTDIS Come In?

Navigating the mutual fund landscape can be challenging. With numerous Asset Management Companies (AMCs) and thousands of mutual fund schemes across multiple categories, selecting the right investments requires careful consideration.

GTDIS helps simplify this process. We help investors identify mutual fund schemes that align with their individual risk profiles, financial goals, growth expectations, and investment time horizons.

Our approach aims to make investment decisions more informed, structured, and aligned with your financial objectives.

Our Fees

Our fees are capped at 2.25% of the invested value and decrease as the fund’s Assets Under Management (AUM) increases in size.

Explore Mutual Fund Types

• Equity Mutual Funds
• Debt Mutual Funds
• Hybrid Mutual Funds