Domain 5
Mutual Funds & Beyond
Mutual funds, ETFs, SIPs, ELSS, PPF, NPS and the rest. What they are, how they make or lose money, and how to match each one to the right goal.
- You're here1What a mutual fund actually isMany investors pool their money, a professional manages it, and everyone owns a slice. It is how ordinary people access a diversified portfolio without picking stocks. 2 min read
- 2How a fund makes (or loses) you moneyYour fund rises and falls with the value of what it holds. You gain when those holdings grow, and you can lose when they fall. 2 min read
- 3NAV: what it is, and what it isn'tNet Asset Value is the price of one unit of a fund. A low NAV does not mean a fund is cheap, and this misunderstanding costs beginners. 2 min read
- 4Direct vs regular plans (this one costs you)Every fund comes in two versions. One quietly pays a commission out of your returns for years; the other does not. The difference compounds. 2 min read
- 5Growth vs IDCW optionsWithin a fund, you choose whether gains stay invested and compound, or get paid out to you. For long-term wealth, the choice matters. 2 min read
- 6The expense ratio, and why it mattersThe annual fee a fund charges to run itself. It is small, automatic, and charged whether the fund does well or badly, so it deserves your attention. 2 min read
- 7Exit loads and lock-insTwo things that restrict when you can take your money out. One is a small penalty for leaving early; the other locks it in entirely for a set period. 2 min read
- 8Equity funds: the main typesEquity funds all invest in shares, but they differ in what kind. Knowing the categories tells you the risk and role of each. 2 min read
- 9Large-cap, flexi-cap and the restThe equity categories most beginners choose among, and what each one is really offering in the trade between stability and growth. 2 min read
- 10Debt funds: safer, but not risk-freeDebt funds are the calmer side of investing, but 'calmer' is not 'risk-free'. Two specific risks are worth understanding. 2 min read
- 11Liquid funds for your emergency moneyA type of debt fund built for safety and quick access. It is one option some people use for part of their emergency or short-term money. 2 min read
- 12Hybrid funds: a bit of bothFunds that blend equity and debt in one product, aiming to smooth the ride. A single fund that is already part-diversified across asset classes. 2 min read
- 13Index funds and how they track a marketA fund that simply copies an index, holding the same companies in the same proportions. Low cost, broad, and refreshingly boring. 2 min read
- 14ETFs: index funds that trade like sharesAn index fund's close cousin, but bought and sold on the exchange like a stock, at live prices, through a demat account. 2 min read
- 15ELSS: saving tax and investing togetherAn equity fund that also earns you a tax deduction, with the shortest lock-in of any 80C option. A rare two-in-one, under the old regime. 2 min read
- 16What an SIP is, mechanicallyUnder the hood, an SIP is a standing instruction: on a fixed date, a fixed amount is invested for you, buying units at that day's price. 2 min read
- 17Step-up SIPs: growing with your salaryA small upgrade to a normal SIP: increase the amount a little each year. Over a career, the effect on your final corpus is enormous. 2 min read
- 18How to read a fund factsheetEvery fund publishes a one-page summary. Knowing the handful of things to actually look at turns it from intimidating to useful. 2 min read
- 19Making sense of fund ratingsStar ratings are a useful starting filter, but they look backward. Yesterday's five- star fund is not guaranteed to be tomorrow's. 2 min read
- 20Comparing two funds properlyDo not compare funds on last year's return alone. A fair comparison looks at several things, on a like-for-like basis. 2 min read
- 21How many funds do you actually need?Fewer than most people hold. A handful of well-chosen funds diversifies you fully; piling on more just creates overlap and confusion. 2 min read
- 22When, and when not, to sell a fundSelling for the right reason strengthens a portfolio; selling for the wrong one wrecks it. The difference is worth learning cold. 2 min read
- 23Taxation of equity fundsHow your equity fund gains are taxed depends on how long you held them. Holding beyond a year lowers the rate and unlocks an exemption. 2 min read
- 24Taxation of debt fundsDebt funds lost their old tax advantage. For units bought after April 2023, gains are taxed at your income-tax slab, whatever the holding period. 2 min read
- 25PPF: the quiet long-term workhorseA government-backed, tax-free, long-horizon savings scheme. Low drama, low risk, and a dependable anchor for long-term goals. 2 min read
- 26NPS: building a retirement corpusA low-cost, market-linked retirement account, with tax breaks (including one that survives the new regime) and access mostly at 60. 2 min read
- 27Sukanya Samriddhi and small savingsA family of government-backed schemes for specific goals, offering safety and steady, often tax-advantaged returns. 2 min read
- 28Fixed deposits vs debt fundsTwo ways to hold steadier money. Since debt funds lost their tax edge, the choice now turns on certainty, liquidity, and flexibility. 2 min read
- 29Sovereign gold bondsA government way to own gold that also paid interest. Note one important update: fresh issues have stopped, so new buyers use the secondary market. 2 min read
- 30Choosing the right vehicle for each goalEvery vehicle in this domain has a job. The skill is matching each goal to the vehicle whose nature fits its horizon and purpose. 2 min read