Online Mutual Fund Investment

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online mutual fund investment

Looking for a way of managing your mutual funds investments? Karvy provides you with an easy way to invest in mutual funds online through its Karvy Nivesh App and Online Investment Platform. Now you can look forward to make mutual funds investment in India anytime, anywhere!

Intelligent Algorithms

Our intelligent algorithms offer you the best suitable plans as per your requirements.

AMFI Registered Distributors

We are registered with the Association of Mutual Funds in India (AMFI) which makes us one of the trustworthy Mutual Fund Distributors.

Switch Old Investments

We also facilitate switching of old physical investments into the digital ones.

Safe & Secure

It's completely safe & secure as we highly focus on maintaining the data privacy.

Variety of Funds

Choose from different types of Equity, Debt, and Balanced Mutual Fund offered by around 35 AMCs.

No Hidden Cost

You only pay for your investments without any handling charges, brokerage or any other kind of hidden costs.

Best Investment Options

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Mutual Fund Investment

Mutual Funds investment - FAQs

Mutual fund is a system for pooling cash by granting units to shareholders and investing funds in securities in line with the goals set out in the bid paper.

Securities investments are distributed across a broad cross-section of industries and sectors and thus the risk is diverse because at the same moment all stocks may not progress in the same direction. Mutual funds award units to shareholders according to the amount of cash they invest. Mutual fund investors are regarded as unit owners.

Investors share the earnings or losses in percentage to their assets. Mutual funds usually come out with a range of plans that are initiated with distinct investment goals from moment to moment. Before collecting money from the public, a mutual fund must be recorded with the Securities and Exchange Board of India (SEBI).

Mutual fund plans are usually categorized based on their composition and investment goal.

By Structure

  • Open-ended Funds: An Open-ended Fund is one that can be subscribed throughout the year. They have no set maturity. At Net Asset Value (NAV) rates, investors can purchase and sell scheme units whatever they want.
  • Close-ended Funds: A Close-ended Fund has a specified maturity span of between 3 and 15 years. The fund is only accessible to subscription for a defined period of time. At the moment of the initial public offering, investors can invest in the scheme and subsequently, if listed, can purchase or sell the scheme units on the stock exchanges.

By Investment Objective

  • Growth Funds: Growth funds are intended to provide medium to long-term equity gratitude. Growth schemes usually invest a bulk of their corpus in equities.
  • Income Funds: Income Funds are intended to provide investors with periodic and constant revenue. Income Funds usually invest in securities of fixed income such as bonds, commercial debentures as well as securities of government.
  • Balanced Funds: The objective of balanced funds is to provide growth as well as regular earnings. Balanced schemes distribute a portion of their earnings on a regular basis and invest in equity and fixed revenue securities in the ratio shown in their offer documents.
  • Money Market Funds: The objective of Money Market Funds is to provide simple liquidity, equity conservation, and mild earnings. In general, Money Market Funds schemes invest in safer short-term tools such as Treasury Bills, Deposit Certificates, Inter-Bank Call Money and Commercial Paper.

Other Equity Related Schemes

  • Tax Saving Schemes: These schemes provide investors with tax rebates under particular sections of the Indian Income Tax Act, as the government provides tax incentives to invest in particular channels.
  • Sectoral Schemes: Sectoral Funds are those that only invest in specific industries such as IT, leisure, pharmaceuticals, FMCG, etc.
  • Index Schemes: Index Funds try to reproduce the efficiency of a specific index such as the BSE Sensex or the NSE S&P CNX 50 index.
  • Growth Option: Under a Growth Plan, the dividend is not paid out and the investor realizes only the investment capital appreciation.
  • Dividend Payout Option: Under a Dividend Payout Option, dividends are paid out to investors. However, the dividend payout amount drops to the NAV of the mutual fund scheme.
  • Dividend re-investment plan: The dividend accumulated from mutual funds is automatically reinvested in open-ended funds to purchase extra units.

Your mutual fund investments earn returns in any of these three ways:

  • Funds receive income in the form of dividends or interest on the securities they own
  • When securities prices rise and a fund sells securities at a higher price, it earns profits
  • If a fund holds securities after their price rises, the Net Asset Value (NAV) of the fund rises and units can then be sold off at a profit

NAV is the measure of performance of an individual scheme of a mutual fund. It is essentially, the market value of the securities held by the scheme. The NAV per unit is the market value of all the securities held by the scheme divided by the number of units. Example, if the market value of securities is INR 200 lakhs, and the mutual fund has issued 10 lakh units of INR 10 each, the NAV of each unit is INR 20. Since the securities' market price shifts every day, the funds' NAV also shifts. It is compulsory for the NAV to be revealed daily or weekly, depending on the sort of scheme.

In the event of open-ended funds, there is no lock-in period. However, a minimum lock-in duration of 3 years from the date of allocation is applicable for tax saving funds such as ELSS. This means that the investor can not redeem or withdraw the amount invested for a period of 3 years after investing in the Scheme.

At the moment of redemption/transfer of units between schemes of mutual funds, the non-refundable premium paid to the Asset Management Company is called the exit load. At the time of such redemption/transfer, it is deducted from the NAV(selling price).

An NFO or a New Fund Offer represents a fresh investment opportunity for investors. An NFO could be the offer for a new mutual fund scheme that the company is launching, and alternatively, the NFO could also be the launch of additional units of existing close-ended funds available for investment.

  • Professional Management: Your money is managed after many strong studies and in-depth study by qualified fund managers using who are specialists in their sector.
  • Constant surveillance: For greatest yields, your investments are continuously tracked.
  • Research: Before investing, a survey is done. Market circumstances, worldwide trends, forecasts of industry development, future sector, company profile, finance, development opportunities... it's all taken into account.
  • Liquidity: Open-ended mutual funds are priced daily and ready to purchase back investor units at all times. This implies investors can sell their mutual fund stocks at any time without having to worry about discovering a buyer at the correct cost.
  • Diversification: Mutual funds strive to minimize danger by investing in a variety of companies across a wide range of industries and sectors through diversification. You can attain diversification through Mutual Funds that would otherwise not have been feasible.
  • Tax Efficiency: The investor's dividends are tax-free. Investments over 12 months are also eligible for long-term capital gains that are presently tax-free. There is no TDS for resident Indians on unit redemption under the 1961 Indian Income Tax Act.
  • Transparency: Prices are stated daily for open-ended mutual funds. Regular reports are accessible on the significance of your investment.
  • Regulated industry: SEBI registers mutual funds and operates under rigid laws intended to safeguard investors' interests.
  • Hassle free Paperless Investment
  • Choose from a wide range of Mutual Fund schemes
  • Portfolio Tracking
  • Financial Tools like SIP Calculator to aid decision making
  • One click Switch/Redeem option

You need to provide your PAN and Bank A/c details via cancelled cheque leaf, bank statement or front page of the bank account passbook. No additional documents are required.

Yes. You can complete your KYC registration within 10 minutes on Karvy OIA Platform.

Karvy OIA holders can make the following transactions as well:

  • New Fund Offer (NFO)
  • SIP Insure
  • Additional Purchase
  • National Pension Scheme (NPS)
  • Instant Redemption
  • Loan against Mutual Fund Units
  • Switch/Redeem Funds
  • Systematic Transfer Plan (STP) and Systematic Withdrawal Plan (SWP)
  • Offline to Online

Payment modes available in Karvy OIA are:

  • Net Banking
  • Debit Card
  • UPI
  • NACH Mandate

The National Payments Corporation of India (NPCI) provides a service called "National Automated Clearing House (NACH)" that involves both debit and credit to banks, economic organizations, corporations and government. It will be called NACH. NACH seeks to facilitate, electronically using the NPCI system, large quantity, low-value debit/credit deals of a repetitive existence. It allows the company to automatically debit your bank account for the amount of SIP you have invested in, so that you do not miss any SIP ever.

You can update your bank details at the time of registration, or else, once you have registered you can add them from My Profile section.

You can add upto 5 bank accounts.

Yes. You can Add/Edit your nominee details from the My Profile section in your Karvy OIA.

Karvy OIA provides you one click redemption facility.

The taxation of the mutual fund depends on the type of fund and the holding period. Here is the tax rate for various mutual funds in India:

Equity-based Mutual funds

  • Long-term capital gain (LTCG) tax on equity plans is tax-free up to Rs 1 lakh profit. However, you have to pay a tax at a rate of 10 percent on the additional investment benefits for the earnings above Rs 1 lakh.
  • You must pay a flat tax of 15 percent on profits for short-term equity-based mutual funds (where the holding duration is less than 12 months).
  • Long-term (holding duration higher than 12 months) is a stronger option since there is no tax up to a capital gain of Rs 1 lakh. Rs 1 lakh gain is a large sum for an average Indian businessman.

Debt-based mutual funds

  • The long-term capital gain tax is equivalent to 20 percent after indexing for the debt mutual funds.
  • Indexation is a way to reduce capital gains by inflation factoring between the years the fund was purchased and the year it was marketed. The longer the holding period, the greater the indexing advantages. In general, indexing enables you to save tax on debt mutual funds profits and increase your income.
  • The profit will be added to your revenue for short-term capital gains (STCG) on debt assets (where the holding duration is less than 36 months) and is subject to taxation as per your income slab. Therefore, you have to pay tax up to 30% if you are in the largest income-tax slab.

Tax Saving Equity Funds

  • In addition to capital appreciation, Equity Linked Saving Schemes (ELSS) is used for tax savings. It is an effective tax-saving tool under chapter 80C of the 1961 Income-Tax Act. By investing in ELSS, you can claim a tax deduction up to Rs 1.5 lakh and save taxes up to Rs 45k. For these funds, however, there is a 3-year lock-in period.
  • Similar to equity funds, LTCG tax will apply after 3 years. Capital gains up to Rs 1 lakh are therefore tax-free. However, earnings above Rs 1 lakh are taxable at 10%.

Balanced (Hybrid) Funds

  • Similar to equity-based mutual funds, balanced funds are handled and therefore have the same framework of mutual fund taxation. This is because the balanced funds are equity-based hybrid funds investing in equities at least 65% of their wealth. This percentage allocation may vary depending on the fund's goal.
  • The long-term capital gain tax on the balanced mutual fund is tax-free up to a Rs 1 lakh gain. The earnings above Rs 1 lakh are taxed at 10%. The tax on short-term capital profit on the balanced funds is equivalent to 15% of the earnings.

Systematic Investment Plans (SIPs)

  • With either an equity fund, debt fund or a balanced fund, you can begin a SIP. Gains from SIPs are taxed according to the type of mutual fund and holding period.
  • Each SIP is regarded here as a new investment and is taxed independently. For instance, if you invest Rs 5,000 in equity funds monthly, then all monthly payments are regarded as a distinct investment. This simplifies the duration of holding.
  • Assume that in January 2017 you purchased your first equity-based SIP and subsequently SIPs in the months ahead. Then by the end of January 2018, as long-investment, only the first investment will be considered. The other SIP is for a duration of fewer than 12 months, so if you redeemed all of them in January 2018, you will have to pay STCG Rest Tax SIPs.
  • In brief, each SIP is treated as a distinct asset and its holding period is calculated to identify the taxation appropriately.

SIP - FAQs

A SIP is a simple and comfortable way to spend set amounts in a mutual fund scheme of your decision on a regular basis. SIPs are the bulk of our investors ' preferred investment selection whose goal is long-term wealth development. Out of our 5 clients actively investing in Mutual Funds, 3 tend to invest in Equity Mutual Funds for the development of long-term wealth and each second client chooses to invest through SIP.

Few of the benefits are mentioned below:

Disciplined investment method - by having you invest periodically, it inculcates saving practice & discipline in investments. A rigorous strategy to investment, like most stuff in our lives, helps to achieve our objectives, i.e. in this situation building long-term assets.

Easy on pockets - Investment through a SIP could be achieved at a level as small as Rs.500 per month.

No need to think about timing the market - In a SIP, investments are made at periodic intervals–regardless of the peaks and lows of the market. So, you get more units when the markets are low and fewer units when the markets are at a high. This enables to average expenses and to keep a unit's price down. Since it's not simple to timeline the market or decide what the correct moment or business standard is, you should continue investing in Equity Mutual Funds frequently through the SIP.

More time is invested in the market-with lower quantities to spend through SIPs, you can begin saving soon. This provides the amount invested more time on the market, increasing the likelihood of greater yields.

SIP Insure is a Mutual Fund scheme by selective AMCs that offer Insurance Cover as part of the investment to investors.

Yes. You can choose to invest in SIP Insure from Invest tab in your Karvy OIA.

There is no minimum number of installments for any SIP. You can choose to invest for as long as you want. However, you can choose your SIP to be monthly, quarterly, half-yearly or annually.

  • Login to your Karvy OIA
  • Click on Invest tab
  • Choose from the Top Mutual Funds or Pick your own Scheme.
  • Click Invest for the scheme of your choice.
  • Choose SIP.

Payment modes available in Karvy OIA are:

  • Net Banking
  • Debit Card
  • UPI
  • NACH Mandate

How can do SIP by choosing payment mode net banking?

To automate the process through Net Banking, investors need to add the Unique Registration Number (URN) as biller for their respective bank. The URN will be received in your email after the first payment is made through Net Banking. The process of adding biller is different for each bank in case of SIP transactions.

The National Payments Corporation of India (NPCI) provides a service called "National Automated Clearing House (NACH)" that involves both debit and credit to banks, economic organizations, corporations and government. It will be called NACH. NACH seeks to facilitate, electronically using the NPCI system, large quantity, low-value debit/credit deals of a repetitive existence. It allows the company to automatically debit your bank account for the amount of SIP you have invested in, so that you do not miss any SIP ever.

You can only make the first SIP payment with Debit Card/UPI. For automating the SIP amount, it is mandatory to have your NACH approved from your bank.

If you are investing in SIP using Net Banking, you need to delete the URN from your Biller list. Along with that you need to send us a SIP Stop Letter mentioning the Fund Name, your PAN and your Signature.

ELSS - FAQs

Equity Linked Saving Schemes (ELSS) are tax savings schemes provided by mutual funds in India and are the only tools to save tax that invest in equity stocks. These funds can be open or closed ended and offer dividend and growth options. ELSS may be subscribed by individuals, Hindu Undivided Families (HUFs) and businesses.

An ELSS fund should definitely be included in each tax payer's tax savings list. In addition to investing in tax savings instruments, tax savings should also have the potential for long-term wealth creation. Only ELSS provides this opportunity for wealth development among all the tax saving tools. Although the ELSS fund has a 3-year lock-in period, this does not mean that the investor will necessarily have to redeem his holdings after 3 years. It could occur that the equity markets could be down at that stage of moment and therefore the ELSS fund's NAV could also be small. One might allow it to stay much longer in the Fund. One should believe of redemption only if he or she is in genuine need of resources or if the peer group has been underperformed by the ELSS, where the fund holder has invested.

An investor in the highest income tax slab can save maximum up to Rs. 45,000 as taxes by investing a maximum of Rs.1.5 lakh under Section 80C of the Income Tax Act, in the year of investment.

Returns are ELSS ' biggest advantage over fixed maturity tax saving tools such as PPFs, NSCs, and bank fixed deposits. Equity investment has always been the finest asset class to achieve long-term yields in India, although the risk components are greater. There are also more lock-in times than ELSS systems for other tax saving tools. For instance, NSC has 6 years lock-in, while PPF has 15 years lock-in.

Yes. Login to your Karvy OIA with your PAN and password > Go to Invest > Choose from the ELSS plans > Click on Invest for the chosen ELSS.

Yes, ELSS funds are offering SIP facility. Ideally, in the month of April itself, a salaried investor should start his SIP in an ELSS fund so that he gets the benefit of rupee cost average and at the end of the financial year he need not worry about the cash flow problem.

NRI - FAQs

A Non-Resident Indian (NRI) is an Indian citizen or a foreign citizen of Indian origin who has stayed abroad for 182 days or more or under circumstances indicating an intention to stay abroad for an unknown duration. Those who remain overseas for company trips, medical therapy, research or other reasons that do not show an intention to remain there indefinitely are not regarded NRIs.

Non-resident (External) Rupee (NRE) account is a rupee account with free repatriation of money. It can be opened by either remitting money from overseas or maintaining local resources in NRE / FCNR accounts that can be remitted overseas. It is possible to use deposits for all lawful reasons. The account balance is repatriable free of charge. The interest credited to the NRE accounts in the NRI's hands is exempt from tax.

Non-Resident Ordinary Rupee (NRO) account is a rupee account that can be opened either with money transferred from overseas or earned in India. Generally, the amounts in such an account are non-repatriable. However, under multiple directives in effect at the moment of repatriation, money in NRO accounts may be transferred overseas.

Yes. NRIs (excluding the USA and Canada) can invest in mutual in India.

Redemption funds will be received through a par-check payable and payments will be provided in favor of the first investor and the bank account number will also be stated on the check.

Redemption proceeds/repurchase cost and/or dividend or gained revenue (if any) will only be paid in Indian Rupees. The mutual fund will not be responsible for any failure due to changes in return while transferring the rupee amount into US dollar or any other currency.