A mutual fund is an investment vehicle that pools money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. Professional fund managers manage these investments to achieve specific financial goals.

Mutual funds collect money from investors and invest it in a variety of securities based on the fund’s objectives. The returns generated from these investments are distributed among the investors proportionally, based on the number of units they hold.

Mutual funds can be broadly categorized into equity funds, debt funds, hybrid funds, and specialty funds like international funds and sectoral/thematic funds. Each type has its own risk and return characteristics.

Benefits include professional management, diversification, liquidity, affordability, and the potential for higher returns compared to traditional savings instruments. They also offer flexibility with a range of investment options tailored to various risk appetites.

A SIP allows you to invest a fixed amount of money regularly (e.g., monthly) in a mutual fund. It helps in averaging the purchase cost over time and instills a disciplined savings habit.

Risks vary depending on the type of mutual fund. Equity funds carry market risk, debt funds face interest rate and credit risks, and hybrid funds combine these risks. However, diversification within the fund helps to mitigate risk.

Selecting the right mutual fund depends on your financial goals, risk tolerance, investment horizon, and market conditions. It’s advisable to consult with a financial advisor or use online tools to match your profile with suitable funds.

NAV is the per-unit value of a mutual fund, calculated by dividing the total value of the fund’s assets by the number of outstanding units. NAV is calculated at the end of each trading day.

You can track your mutual fund’s performance through the our Andriod app/ web portal. Regular statements are also provided by us.

Yes, most mutual funds offer liquidity, allowing you to redeem your units at any time. However, certain funds, like close-ended funds or those with lock-in periods (e.g., ELSS), may have restrictions.

Taxation varies depending on the type of fund and holding period. Equity funds held for more than one year qualify for long-term capital gains tax, while debt funds have different tax rules. Dividends are also taxed in the hands of the investor.

While mutual funds carry risk, they are regulated by the SEBI authorities to ensure transparency and protect investors. The level of safety depends on the type of fund and your investment choice.

You can start investing in mutual funds by opening an account with Prospera Investments. You’ll need to complete the KYC (Know Your Customer) process, select your funds, and decide on your investment amount.