MUTUAL FUND GUIDE

[ManojGowda]

I'm completely new to MF
I want to create a SIP(10k) in MF and also frquently invest one time money into it whenever i have money
1. Which is the best app to invest? Should i choose a new age fin companies like Coin or stick to banks?
2. How is the withdrawl? If i decide to withdraw funds, how many days would it take to get credited into my bank account?
3. Are all tax saver equity linked MF have a 5 year lock in period? What if i decide to discontinue in between? What are the charges applicable usually?
4. Is MF brokerage based or fixed charges for investing?

 

[roygarg]

I am a noob too. I just started this year but I can answer your questions to some extent.

1. Which is the best app to invest? Should i choose a new age fin companies like Coin or stick to banks? - There are many apps such as Kuvera, MF Central, Groww. I signed up on Groww because of the ease of the KYC process. Zerodha holds your funds in a Demat account and you lose the flexibility of withdrawing directly from the AMC or through other apps. Never go through banks because as far as I know all they offer are Regular funds that carry commission. Stick to Direct funds that usually have the word "Direct" in the name.

2. How is the withdrawl? If i decide to withdraw funds, how many days would it take to get credited into my bank account? - Depends on the fund type. Read this. https://www.etmoney.com/help/mutual-funds/withdrawal/how-soon-do-i-get-the-money-after-placing-a-withdrawal-request

3. Are all tax saver equity linked MF have a 5 year lock in period? What if i decide to discontinue in between? What are the charges applicable usually? - They are ELSS funds with a 3 year lock in. I dont think you can withdraw before 3 years. Check with others once.

4. Is MF brokerage based or fixed charges for investing? - As mentioned earlier, stick to direct funds to avoid commission charges. There is a fixed amount that is charged for the maintenance of the fund which is known as expense ratio. Also, there is a thing known as exit load if you exit a fund. These are usually very minimal and are specified for each fund (Example below is for Mirae Asset ELSS Tax Saver Fund Direct Growth) Read this. https://groww.in/p/expense-ratio

 

[KLB@96]

For research on MF you can use Value research , they have excellent news letters

 

[sri_cc]

3. Are all tax saver equity linked MF have a 5 year lock in period? What if i decide to discontinue in between? What are the charges applicable usually?

it's 3 years and you can't redeem in between, there are no charges as you won't be able to withdraw at all