If in case you apply for redemption before 3 P.M., then you will receive the amount generated by your mutual fund in the next morning. Moreover, according to the SEBI guidelines, it is mandatory for the AMC to provide quick redemption of up to Rs. 50,000.
Yes, ELSS Funds are equity-oriented scheme and is subject to LTCG of 10% on capital gains of more than Rs. 1 lac in a financial year.
No. The units bought of an ELSS mutual fund can only be redeemed after completion of 3 years from the day of buying. Every unit should complete 3 years before it can be redeemed. It can neither be redeemed nor transferred before 3 years.
It depends on your annual income and amount you invest In ELSS Tax Saving Mutual Funds. In the highest tax bracket, a maximum of Rs 45,000 can be saved per financial year.
Yes. SIP amount in Tax Saving ELSS Funds can be increased either one time or periodically.
Under section 80C, tax benefits from ELSS Funds will only be applicable up to Rs 1.5 lac. However, there is no maximum limit for investment in an ELSS Tax saving scheme.
As soon as the investment is made in an ELSS scheme, the mutual fund asset management company sends an account statement which can be used as a proof to claim tax deduction.
Among a range of schemes available in the market, it is quite essential for the investors to understand which scheme is the best one for their investment goal. At MySIPonline we provide the researched analysis of all the large-cap sip plans and better comparison on the basis of your investing needs to let you invest in the best funds. You must avail our services to make your investment journey simplified.
The best performing large cap mutual funds in India aim at providing assured capital growth to the investors and help in accomplishing the long-term investment objectives. The fund has investments in the well-established companies which offer consistent growth and income stability to the investors while ensuring the capital appreciation. The risk appetite is moderate, and thus they are best suited to all types of investors. With a consistent risk profile, the investors avail the benefit of appreciation in the financial status.
Multi cap funds investments
Planning for investment in mutuial funds
As per the norms of SEBI, it is mandatory for a large-cap fund to invest a minimum of 80% corpus in the stocks of companies which are ranked from 1st to 100th in terms of market capitalisation.
Large cap funds are ideal for those investors who wish to invest in a pure equity scheme that offers low volatility. These funds are chosen by a large number of investors as the risk is low but the returns are consistent in medium to long term.
Small cap funds are suitable for the investors who can digest high risk in search for higher returns. Moreover, these funds are not suitable for the investors who are stepping in the finance market with a short term investment perspective as they might end up delivering negative returns.
The minimum investment depends from one scheme to another. In general, for lumpsum investment the minimum investment can range from Rs. 500 to Rs. 5000. Whereas, in case of SIP, the range may vary between Rs. 500 to Rs. 1000. For authentic information, never forget to check the scheme related documents.
Small cap funds invests majorly in the stocks of small caps which are companies that rank 251 and more in the equity market in terms of market capitalization. Whereas, large and mid caps funds invests predominantly in companies that rank 1-100, and 101-250 in the equity market, respectively.
The fund manager of small cap fund targets the best small sized companies having the potential to generate excellent gains in the future. Such companies do not have much resources as the large cap or mid cap companies but have high potential to outperform many big companies.
Small cap funds have more tendency of providing exceptional returns than the other categories of funds. Moreover, they can also be a suitable option for providing diversification to your portfolio.
Small cap funds are one of the riskiest mutual funds. But at the same time rewards are also high. Therefore, an investor who is willing to expose his corpus towards risk for fetching higher returns should invest in small cap funds.
Liquid Mutual Funds is a category of mutual fund that invests in market instruments having short-term maturity period. These funds diversify the assets in the instruments having maturity of up to 91 days.
Liquid Mutual Funds are low risk funds as they park the money in the debt and money market instruments.
Liquid funds provides better inflation-adjusted returns than the savings account. The interest returns provided by the savings account is around 4% whereas the liquid mutual funds are capable of providing 7% to 9% returns. Moreover, the liquid fund provides similar liquidity as the savings account.
Being a low risky fund, liquid funds are suitable for the investors who are not willing to take much risk in the mutual fund market but at the same time want to generate stable returns.
Aggressive hybrid mutual funds were previously known as balanced mutual funds but after SEBI released the norms of re-categorisation in May 2018, the name for equity-oriented hybrid schemes was changed from balanced funds to aggressive hybrid fund. Hybrid funds with almost equal allocation in equity and debt instruments are now called as balanced mutual funds.
As per the norms of SEBI, an aggressive hybrid mutual fund has to invest a minimum of 65% of the corpus in pure equity stocks while the maximum limit is 80%. The rest of the corpus is invested in debt securities.
Multicap Mutual Funds are suitable for the investors who can digest moderately high risk in the mutual fund space. These funds are riskier than the large cap funds as they also invest in the mid cap and small cap stocks which makes them more prone towards risk.
Well, that depends on scheme to scheme. In general, the average returns of midcap funds in the long term ranges between 12%-18%.
Multicap Mutual Funds aim to utilize investment opportunities across the market. These funds invests in a combination of large, mid, and small cap stocks for providing moderate returns to the investors.
Choosing the best multicap fund depends on several factors like your investment horizon, mode of investment, portfolio allocation of a scheme, past performance, market conditions etc. Thus, before investing in any multi cap fund always perform an in-depth analysis of the fund to safeguard yourself from the market risk.
The returns are not guaranteed like the Fixed Deposits. But, the average returns lies in the range of 7% to 9%. For this, you should always analyze the past performance of the fund which will give you some idea about the previous track record of the fund.
Investors who prefer a mix of equity and debt tools in the portfolio can invest in aggressive hybrid mutual funds. It provides risk-adjusted returns as the volatility in equities are neutralised by debt securities.
For better returns, investments in any balanced mutual fund must be held for 3 years. Higher returns can be expected if the investments are held for an even longer duration.
The STCG tax is applied on liquid funds if the investor sell the units before 3 years. The tax will be added to the income of investor and taxed according to the income tax slab. After 3 years, the LTCG tax imposed on the capital gains is 20%.
Liquid funds are the sub-category of debt instruments having no exit load. Moreover, the maturity period of instruments (up to 91 days) in case of liquid mutual funds also differentiates them from other categories of debt funds.
Benchmark is a standard with which a mutual fund competes in terms of growth & performance. Different small cap funds have different benchmark. Thus, read the mutual fund document carefully to know the benchmark.
Yes, small cap funds also gives the privilege of SIP (Systematic Investment Plan) along with lumpsum mode of investment to the investors. The minimum SIP amount vary from scheme to scheme ranging from Rs. 500- Rs. 1000.
Yes, small cap funds are a suitable choice for generating long term capital appreciation. Moreover, in short term these funds can cause double digit losses to the investors. Thus, always maintain a long term investment perspective while investing in small cap mutual funds.
Small cap funds are eligible for two types of taxes- STCG (Short Term Capital Gain) and LTCG (Long Term Capital Gain). STCG is the capital gain generated on the units which are hold for up to 1 year. The STCG tax imposed by the Government of India is 15%. LTCG is the profit generated on the units which are hold for more than one years. The LTCG levied is 10% for the profit above Rs. 1 Lakh.
Large-cap funds possess the least risk in the equity category as the stocks in which such scheme invest are experienced, financially stable, and are leaders of their respective sectors. They are less prone to frequent fluctuations and can resist smaller fluctuations in the market.
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