Q. What Are Mutual Funds?

A.   A Mutual Fund is a trust that pools together the savings of a number of investors who share a common financial goal. The fund manager invests this pool of money in securities ranging from shares and debentures to money market instruments or in a mixture of equity and debt, depending upon the objectives of the scheme

Q. What Are The Documents Required For Investing In Mutual Funds?

A. PAN Card and KYC

Q. Who Needs To Provide PAN CARD?

A. The requirement of PAN CARD applies to all holders including Power of Attorney (PoA) holder and Lien Holder

Q. Which Transactions Will The KYC Be Applicable?

A. KYC will be applicable for all transactions.

Q. What Are Entry/ Exit Load?

A. A charge paid when an investor buys/sells a fund. There could be a load at the time of entry or exit, but rarely at both times.

Q. What Is Redemption Price?

A. Redemption price is the price received on selling units of open-ended scheme. If the fund does not levy an exit load, the redemption price will be same as the NAV.

Q. What Is A Switch?

A. Mutual Funds provide the investor with an option to shift his investment from one scheme to another within the same fund house subject to loads.

Q. Will TDS Be Deducted On Dividend Received?

A. No, TDS will not be deducted on Dividend payments for both Resident as well as NRI's.

Q. Can We Invest In Joint Names And How Many?

A. Yes. Currently, you can appoint maximum 3 persons as Joint Holders.

Q. What Are The Eligibility Criteria For Registering A Person As Joint Holder?

A. An individual who is 18 years or above and who has a PAN card can be registered as Joint Holder.

Q. Is it necessary for a minor to have KYC?

A. A minor investor does not require KYC. In such cases, the Guardian has to provide his / her KYC Compliance letter along with the minor's investment application form.

Q. Can I Transact Anytime During The Day?

A. Yes, you can transact at any time of the day. However, in order to get the NAV of the current day you would have to transact before the cut-off time of the scheme. Generally the cut-off time of the scheme is 3.00pm.

Q. Can Non-Resident Indians (NRIs) Invest In Mutual Funds?

A. Yes, non-resident Indians can also invest in mutual funds.

Q. What Is A Systematic Investment Plan?

A. A systematic investment plan is one where an investor contributes a fixed amount every week, every month and every quarter at the then prevailing NAV and the units are credited to his account.

Q. What Is NAV?

A. NAV is the Net Asset Value of the fund.

Q. Do Mutual Fund Investments Attract Wealth Tax?

A. No. Under the Wealth Tax Act, all financial assets, including mutual fund units are exempt totally from Wealth Tax.

Q. If I Gift Mutual Fund Units, Does It Attract Gift Tax?

A. No. With effect from 1^st October 1998, units of a mutual fund gifted by unit holders are no longer chargeable to Gift Tax.

Q. From Where I Can Download The Form To Purchase A New Fund?

A. You can find the Application Form from the respective Mutual Fund House or under the Download Forms option. Click on the required form and chose the 'Save' option from the dialog window.