6 Replies to “What is mutual fund?Is invested amount is safe in it?What documents required to buy it?”

  1. mutual funds are having different options.if u invest tax benefit fund i.e. ELLS. but this is a locked amount for at least 3 yrs. u cant withdraw it before 3 yrs.

  2. MF are having tax benefit, its called ELSS scheme and u need to have a PAN card to invest, if u invest for more than 1 year your amount is not taxed, its a tax free after a year, for further advice mail me

  3. You can choose balanced fund or debt fund to get a stable income and also risk free in nature.

    these will give low income when comapred to equity schemes.

    the most important thing is PAN is basic requirement for the investment in mutual fund.

    you need not to pay the tax if the investment in mutual fund is more than one year. else a STT has to be paid if it is within one year. don’t worry it is very less and it is only on the gain.

  4. Some companies collect money from public and invest the money in shares, equities, debantures etc, as the investor gets a handsome amount as return. Public who want to invest in Mutual Funds, have to pay the amont payable by instalments like premiums of Insurance companies.
    It is obviously has tax exemption. Pay slip, residential proof etc are required.
    You can buy ICICI Prudential. Thanks.

  5. Mutual Fund is a pool of funds where, the funds collected from individual investors will be invested in stocks, bonds, government securities etc. based on the type of fund.

    These funds will be managed by experts in the field. There are various types of funds with various risk levels. Like the gilt funds are less riskier compared to sector funds etc.

    If you want to save tax, then you have to invest in ELSS (i.e Equity Linked Savings Scheme) Which generally tax gain funds.

    Documents Required:
    1. PAN Card (It’s Mandatory)
    2. Any Address Proof (Voter ID/ Bank Pass book/ Driving Licence/Ration Card Etc.)

    Types of Funds
    This will vary according to your needs, requirements and risk taking ability.

    You can contact any mutual fund house for advice. They will send an advisor to you.. almost for free…

  6. Mutual funds are nothing but investment companies. They collect money from public and invest on our behalf and they charge some small % of amount for maintaining the fund. They offer different types of investments like 100% shares, 100% Govt. Securities or 50% shares & 50% Govt. Securities. Like this they offer many plans. We have to chose one of the option depending upon the risk we can take. Shares are always risky and at the same time one can expect good returns. Some times you may get loss also. So if you want to take risk for gains, then you have to select shares investment option. If you want only profits and no losses at all, then you have to select govt. Securities option. In which you can only expect only profits around 6% to 8% appriciation.

    To open a account in any mutual fund, you require a bank account, and PAN number if you are going to invest more than Rs.50,000/-. When you take back/withdraw the amount from the Mutual fund, you have to pay Income tax depending upon gains you made. If your income including the gains from the mutual fund is more than the exempted limit, then only you have to pay income tax.

    If you invest Rs.2 lakhs or more in any mutual fund, then your name and address will go to the Income Tax department.

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