Registration of nomination will facilitate easy transfer of funds to the nominee(s) on the demise of the Investor. However, in the absence of nominee, a claimant would have to produce a host of documents like a Will, Legal heir Certificate, No-objection Certificate from other legal heirs etc. to get the units transferred in his/her name.

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Yes. You can make nomination for your Mutual Fund units purchased.

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You can nominate any individual as your nominee. However, you cannot nominate the following as your nominee with regard to your mutual fund units:
a. A Trust
b. A Society
c. A Body Corporate
d. A Partnership Firm
e. Karta of a Hindu Undivided Family
f. A Power of Attorney Holder

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Mutual fund companies send newsletters and information on their portfolio details to investors on a regular basis. In case you’ve not received the same, you may access the portfolio details on the respective mutual fund website.

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You may choose the right mutual fund on the basis of:

Your Age

Time horizon: The amount of time you plan to remain invested

Risk profile: The amount of risk you are comfortable taking with your investments

Asset allocation: Diversifying your investments to bring down the inherent risk in each asset class

Background of the mutual fund company

The track record of the scheme over a period of time

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Some Mutual Funds provide the investor with an option to shift his investment from one scheme to another within that fund. For this option the fund may levy a switching fee. Switching allows the Investor to alter the allocation of their investment among the schemes in order to meet their changed investment needs, risk profiles or changing circumstances during their lifetime

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Repurchase or redemption price is the price or NAV at which an open-ended scheme purchases or redeems its units from the unitholders. It may include exit load, if applicable.

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The price or NAV a unitholder is charged while investing in an open-ended scheme is called sales price. It may include sales load, if applicable.

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Exit load is a fee charged by the mutual fund houses if investors exit a scheme partially or fully within a certain period from the date of investment, as specified in the Scheme Information Document. Some schemes do not charge an exit fee. Mutual fund charges exit load to discourage investors from redeeming before a certain time period.

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NAV is required to be disclosed by the mutual funds on a regular basis – daily or weekly – depending on the type of scheme.

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Net Asset Value (NAV) refers to the price of one unit of a mutual fund scheme.

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Under a Systematic Withdrawal Plan (SWP), an investor redeems a fixed number of mutual fund units at regular intervals.

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Rupee cost averaging is one method to save regularly and minimize the effect of market volatility on investments. By investing through methods like SIP, you invest a fixed amount in mutual funds at regular intervals. So, you get more units when the NAV is low and fewer units when it is high. Eventually, your average cost per unit is brought down.

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Investing in SIP offers two major benefits: –
1. You can start investing with a small amount, and
2. You can average out your investment, as SIP involves buying units at different points of time and at different NAV levels.

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You can buy units of close-ended mutual funds only when a mutual fund company launches the fund. Once you buy them, you have to hold your investment for a fixed tenure.

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Open-ended funds can be bought and sold at any time; they have no fixed tenure.

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Equity Linked Saving Schemes (ELSS) are tax saving mutual fund schemes that enable you to get tax benefits under Section 80C of the Income Tax Act. Investment in these funds have a lock-in-period of three years.

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Capital protection funds are mutual funds designed to protect your capital. These funds put a major portion of the investment in bonds, and a small portion in shares. Over time, the portion invested in bonds grows to the size of your original investment. So even if the portion invested in shares does not do well, your capital is still protected.

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Liquid funds are mutual funds that offer high liquidity. This means, the units of these funds can be sold immediately, and the invested amount can be redeemed quickly.

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Sectoral mutual funds invest your money in shares of companies of one particular sector. The main objective of these funds is to provide high returns from one particular sector that has the potential to grow.

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