What is the minimum amount to start a mutual fund SIP?
Most mutual fund SIPs start from ₹500 per month in equity funds, and as low as ₹100/month in some schemes. There is no upper limit. Finvastra recommends starting with ₹5,000–₹10,000/month for meaningful long-term wealth creation in Hyderabad.
What is the difference between regular and direct mutual fund plans?
Regular plans are distributed through AMFI-registered distributors who provide advisory, goal planning, and ongoing portfolio management. Direct plans are for investors who approach AMCs independently without professional support. For most investors, working with an AMFI-registered distributor like Finvastra (ARN-351631) adds significant value through expert fund selection, goal mapping, tax optimisation, and behavioural guidance.
Should I invest in ELSS or PPF for tax saving?
ELSS has a 3-year lock-in vs PPF's 15 years, and historically delivers 12–14% CAGR vs PPF's ~7.1%. For investors with a moderate to aggressive risk appetite, ELSS is generally a better Section 80C option. PPF suits risk-averse investors who want guaranteed returns.
What exit load applies when I redeem mutual funds?
Most equity mutual funds charge 1% exit load if redeemed within 12 months. After 12 months most open-ended equity funds have nil exit load. Liquid and overnight funds typically have no exit load. ELSS has a mandatory 3-year lock-in per SIP instalment.
How is LTCG tax calculated on mutual funds?
Long-term capital gains (LTCG) from equity mutual funds held over 12 months are taxed at 12.5% on gains above ₹1.25 lakh per financial year. Short-term capital gains (STCG) for holdings under 12 months are taxed at 20%.
Which is the best mutual fund for beginners?
For beginners in Hyderabad, Finvastra typically recommends a diversified equity fund (Flexi Cap or Large Cap) for long-term goals, and a Liquid Fund for the emergency corpus. The 'best' fund depends on your goal, horizon, and risk appetite — book a free consultation for personalised advice.
What is NAV and how does it work?
NAV (Net Asset Value) is the per-unit market value of a mutual fund scheme, calculated at the end of each business day. When you invest, you receive units at the applicable NAV. Returns are determined by the change in NAV over the holding period.
How do I track my mutual fund returns?
You can track mutual fund returns via your AMC account, platforms like MFCentral or MFU, CAMS/Karvy statements, or through the Finvastra advisory review. XIRR is the most accurate return metric for SIP investments and accounts for the timing of each instalment.
Can I switch from one mutual fund to another?
Yes, you can switch between schemes within the same AMC. A switch is treated as a redemption (triggering capital gains tax) and a fresh purchase. Switching across AMCs requires redemption and re-investment. Finvastra advisors help plan tax-efficient switches.
How does Finvastra select mutual funds for clients?
Finvastra evaluates funds on 5-year risk-adjusted returns (Sharpe ratio), rolling return consistency, fund manager track record, AUM stability, and category fit. As AMFI-registered distributors (ARN-351631), we evaluate across all fund houses — our selection is based entirely on performance credentials and goal alignment, without bias towards any single AMC.
