A mutual fund is a financial instrument that collects money from several investors like you, and invests it in various investment options like shares, bonds, etc. This fund is managed by experts.

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A mutual fund company collects money from many investors, and invests it in various options like shares, bonds, etc. This fund is managed by professionals who understand the market well, and try to achieve growth by making strategic investments. Investors get units of the mutual fund according to the amount they have invested.

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Fund managers are experts who have their pulse on the market and decide on the right pick of stocks, debentures, debt instruments, government securities among others to maximize gains on your investment.

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AMC or Asset Management Company is the company that runs and manages mutual funds.

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Depending on where your money is invested, mutual funds can be classified into three types: Equity, Debt and Hybrid. Equity mutual funds invest in shares of companies listed on the stock exchange. Debt mutual funds invest in bonds of reputed companies and government bonds. Hybrid mutual funds invest in both, shares and bonds.

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A Systematic Investment Plan (SIP) is a convenient method of investing in mutual funds. Under this plan, an investor contributes a fixed amount towards the mutual fund scheme at regular intervals, and gets units at the prevailing NAV.

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NAV can be calculated as follows:-
(Assets of the fund less Liabilities of the fund) / Number of units outstanding for that fund.

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Arbitrage fund is a type of mutual fund that leverages the price differential in the cash and derivatives market to generate returns.

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Theoretically, the price of a stock is in the Futures Market is higher than the price in the Cash Market. The difference between the price of the stock in the Cash and Futures Market in the income of the arbitrage fund.

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An arbitrage mutual fund scheme purchases stock in the Cash Market and simultaneous sells that stock in the Futures Market.

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A nomination is at folio level and all units in the folio will be transferred to the nominee(s). If an investor makes a further investment in the same folio, the nomination is applicable to the new units also.

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No. Nomination made in your existing mutual fund folios will not be automatically updated for new folios created for fresh mutual fund purchases made by you. For all new folios, you will be required to make a separate nomination request.

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In mutual funds, you can nominate up to three individuals until August 31, 2025. From September 1, 2025, the limit is increased to ten nominees, according to updated SEBI guidelines. You can also specify the percentage share each nominee will receive, or the investment will be divided equally if no percentages are specified.

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Yes. You are permitted to nominate a minor. However, if you nominate a minor, you must provide the name and address of the minor’s guardian in the nomination request.

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Yes. A non-resident Indian can be a nominee subject to the exchange controls in force, from time to time.

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Investors in the Category of “Individuals” are permitted to make a nomination for their mutual fund units. Non-individuals including society, trust, body corporate, partnership firm, Karta of Hindu Undivided Family and a holder of Power of Attorney are not allowed to nominate.

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Nomination causes all rights and/or amount(s) payable in respect of your Mutual Fund Holdings to vest in and be transferred to your nominee upon your death. If your legal heir is different from your nominee, your legal heir cannot dispute this action as transfer by the respective AMC(s) in favour of a Nominee acts as valid discharge by the AMC(s) against the legal heir of the deceased holder.

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Yes. You can cancel / change your existing nomination at any time before you redeem your mutual fund units.

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No nominee can be registered under on behalf of minor account.

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An investor can nominate person(s) called nominee(s) to whom his/her Mutual fund Units will
be transferred on his/ her demise. The units will get transferred to the nominee in case of Single holding or Joint holding in the following manner:-
Single holding of units in the folio: The Mutual Funds units will get transferred in the name of the registered nominee on the demise of the Single (primary) holder.
Joint Holding or more than one unit holder in a folio: The Mutual Funds units will get transferred in the name of the registered nominee on the demise of both the joint holder(s).

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