Mutual funds pool money from multiple investors and invest it according to a scheme's stated objective. Explore how SIPs, lump-sum investing, scheme characteristics and market risks work before you invest.
Mutual fund distribution through Prospera FinTech's AMFI-registered entities
Investors receive units representing their share in the fund
A simple way to understand the basic structure before looking at individual schemes
Money from multiple investors is pooled into the scheme.
The pooled money is invested according to the scheme's investment objective.
Your investment is represented through units whose value changes with the scheme's assets.
Mutual fund schemes are managed by their respective Asset Management Companies (AMCs). Prospera FinTech distributes mutual fund schemes through its applicable AMFI-registered entities.
They are different investment approaches. The choice depends on how and when you have money available to invest.
A SIP invests a predetermined amount at regular intervals, such as monthly. It can help create a disciplined investing habit and spread investments over time.
Lump-sum investing means putting an available amount into a mutual fund scheme at one time. It may be considered when a substantial amount is already available for investment.
Past returns are only one part of the picture. A scheme should be understood in the context of its characteristics and your investment needs
Understand what the scheme is designed to achieve and where it invests.
Risk varies across categories and schemes. Consider the nature and level of market risk involved.
Consider how long the money can remain invested and whether that matches the scheme.
Check redemption conditions, exit loads, lock-ins and other applicable restrictions.
Review applicable costs, fund expenses and taxes before making an investment decision.
Read the relevant SID, SAI, KIM, addenda and other applicable scheme disclosures.
Explore the available mutual fund platform and review scheme information before proceeding
The type and level of risk can vary significantly across mutual fund categories and schemes
Investment values can rise or fall with market movements.
Changes in interest rates can affect certain debt-oriented investments.
Some investments can be affected if an issuer has difficulty meeting its obligations.
Certain investments may be harder to sell or may have specific liquidity conditions.
A straightforward path from understanding mutual funds to accessing available schemes
Learn how mutual funds, SIPs, lump-sum investing and scheme risks work.
Browse available mutual fund schemes and review their stated features and documents.
Consider objective, risk, horizon, liquidity, costs and other applicable terms.
Complete the applicable transaction and account process through the available platform.
Short answers to the practical questions that come up before investing
A mutual fund pools money from multiple investors and invests it in securities according to the investment objective of the scheme. Investors receive units representing their share in the fund.
A Systematic Investment Plan (SIP) is a method of investing a predetermined amount in a mutual fund scheme at regular intervals, such as monthly. It can help build a disciplined investing habit and spread investments over time, but it does not remove market risk or guarantee returns.
SIP and lump-sum investing are different approaches rather than one being universally better. A SIP can suit regular investing from income, while a lump sum may be considered when an amount is already available for investment. The applicable choice depends on the circumstances of the investment.
Consider the scheme's investment objective and strategy, asset allocation, risk level, investment horizon, liquidity, costs and consistency of performance. Avoid selecting a scheme solely because of recent returns.
Mutual funds are subject to market risks. Depending on the category and scheme, risks can include equity-market, interest-rate, credit and liquidity risks. The level and nature of risk vary across schemes.
Yes. Investors can hold multiple mutual fund schemes. However, having too many schemes can create duplication and make a portfolio harder to monitor. The focus should be on appropriate diversification rather than simply increasing the number of funds.
Generally, open-ended mutual fund units can be redeemed on business days, subject to the scheme's terms and applicable restrictions. Some schemes or options may have exit loads, lock-in periods or other conditions, so the applicable terms should be checked before redemption.
NAV, or Net Asset Value, represents the per-unit value of a mutual fund scheme's assets after accounting for its liabilities. NAV changes as the value of the securities and other assets held by the scheme changes.
Mutual funds offer a wide range of investment options, but every scheme has its own characteristics and risks. The choice of scheme should be considered in relation to the investor's objectives, risk level, investment horizon and liquidity requirements.
Explore available mutual fund options through Prospera FinTech's AMFI-registered distribution entities
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