Mutual Fund News
Follow the latest from the mutual fund industry — new fund offers, NAV movements, SIP flow data from AMFI, fund manager changes, and category performance trends. India's mutual fund industry manages over Rs 60 lakh crore in assets, and this section helps you stay current on which fund houses are growing, how different categories are performing, and what regulatory changes (like SEBI recategorisation or expense ratio caps) mean for your investments. Useful for both existing investors reviewing their portfolio and new investors researching where to start.
Frequently Asked Questions
How do I pick the right mutual fund?
Start by defining your goal and time horizon — equity funds for 5+ year goals, hybrid for 3-5 years, debt for under 3 years. Within each category, compare funds on 3 and 5-year rolling returns (not just trailing returns), expense ratio, fund manager track record, and AUM size. Avoid chasing last year's topper — consistency matters more than one great year. Index funds are a strong default choice for most investors who want simplicity and low costs.
What is the difference between regular and direct mutual fund plans?
Direct plans are purchased directly from the AMC without a distributor, so they have a lower expense ratio — typically 0.5% to 1% less per year than regular plans. Over a 15-20 year horizon, this difference compounds into lakhs of rupees in additional returns. Regular plans include a distributor commission baked into the expense ratio. If you are comfortable managing your investments online, direct plans through platforms like AMC websites or MF Utility offer better value.
Should I invest via SIP or lumpsum in mutual funds?
SIP works best for salaried investors who want to invest regularly and benefit from rupee cost averaging during volatile markets. Lumpsum suits those who have a large amount available and want to deploy it when valuations are reasonable. Studies show lumpsum outperforms SIP about two-thirds of the time because markets trend upward, but SIP is easier psychologically and avoids the pressure of timing the market perfectly.