Explore Top Equity Funds on MINTIT

Large-cap funds invest primarily in well-established companies with large market capitalizations (think blue-chip stocks). These companies are typically leaders in their industries, known for their stability and reliable track records.

Key Points:

• Lower risk: Large-cap funds offer less volatility compared to mid-cap or small-cap funds.
• Steady returns: They aim for long-term growth and may provide regular dividends.
• Good for: Investors with moderate risk tolerance and long-term investment goals.
• Important: Even large-cap funds carry some market risk. Always research specific funds and understand their performance and strategies before investing.

1. What is a Large Cap Fund?

Large Cap Funds are mutual funds that primarily invest in equity shares of the top 100 companies in India based on market capitalization. These companies are known for their stability, reliable performance, and strong market presence.

2. Where do Large Cap Fund Invests?

Large Cap Funds invest in well-established, blue-chip companies across various sectors of the economy. Think of the biggest names in Indian industries – those are likely where Large Cap Funds put your money.

3. How Can I Invest in a Large Cap Fund?

You can invest in Large Cap Funds through platforms like MINTIT! Here's how

• Browse & Compare: Explore and compare different Large Cap Funds based on performance, risk factors, and expense ratios.
• Select & Invest: Choose the fund that suits your goals and invest either as a lump sum or through systematic investment plans (SIPs).

4. What is the benchmark of a Large Cap Fund?

Large Cap Funds are usually benchmarked against indices like the Nifty 100 Total Return Index or the S&P BSE 100 Total Return Index. These indices track the performance of the top 100 companies in India.

5. What is the average returns on a Large Cap Fund?

Historically, Large Cap Funds have provided average returns of around 12-15% over the long term. However, past performance doesn't guarantee future results.

6. What is the ideal time horizon for a Large Cap Fund?

Large Cap Funds are ideal for investment horizons of 5 years or more. This allows them to ride out market fluctuations and deliver stable growth.

7. Who should invest in a Large Cap Fund?

Large Cap Funds are suitable for investors who:

• Have a moderate risk appetite.
• Seek long-term wealth creation.
• Want a relatively stable investment option.

8. What is the taxation applicable on a Large Cap Fund?

As per the budget released on July 23, 2024:

1. Short-term Capital Gains (STCG): If you sell your equity mutual fund units within one year of purchase, the gains are considered STCG and are taxed at 20%.
2. Long-term Capital Gains (LTCG): If you sell your equity mutual fund units after one year of purchase, the gains are considered LTCG and are taxed at 12.5%. However, LTCG up to ₹1.25 lakh is exempt from tax.

Additional Points to Note:

• Securities Transaction Tax (STT): STT of 0.001% is levied on the sale of equity mutual funds and equity-oriented hybrid mutual funds.
• Dividend Distribution Tax (DDT): DDT has been abolished. Instead, dividends from mutual funds are now taxed in the hands of investors as per their income tax slab.

9. Is there any lock-in period?

No, Large Cap Funds typically don't have a lock-in period. However, some funds might have an exit load if you redeem your investment within a short period.

10. Advantages of a Large Cap fund?

• Stability: Less volatile compared to mid-cap or small-cap funds.
• Consistent Returns: Potential for long-term growth and steady income.
• Professional Management: Your investment is handled by experienced fund managers.

11. Disadvantages of a Large Cap Fund?

• Limited Upside: May not offer explosive growth potential compared to riskier funds.
• Market Risk: Still subject to overall market fluctuations.

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

13. Want to know more about Mutual Funds?

Mutual Fund Explained

Explore some top-rated Large Cap Funds on MINTIT!

Mid-cap funds invest primarily in companies with medium-sized market capitalizations, ranking between the top 101 and 250 companies in India. These companies offer higher growth potential than large caps but also carry more risk.

Key Points:

• Higher risk/reward: Mid-cap funds offer the potential for greater returns but with more volatility compared to large caps.
• Long-term growth focus: They aim for aggressive growth over extended periods.
• Good for: Investors with higher risk tolerance seeking long-term growth potential.
• Important: Mid-cap funds are susceptible to company-specific risks and market swings. Thorough research is crucial.

1. What is a Mid Cap Fund?

Mid Cap Funds are mutual funds that primarily invest in the stocks of companies that rank between 101 and 250 in terms of market capitalization. These companies have high growth potential but also carry more risk than those in large-cap funds.

2. Where does a Mid Cap Fund Invest?

Mid Cap Funds invest in companies across industries that are on a growth trajectory. These companies may be established names in their sectors or emerging leaders with strong potential.

3. How Can I Invest in a Mid Cap Fund?

Just like Large Cap Funds, you can invest in Mid Cap Funds through platforms like MINTIT! Browse, compare, and select the fund that suits your investment strategy.

4. What is the benchmark of a Mid Cap Fund?

Common benchmarks for Mid Cap Funds include the Nifty Midcap 150 Total Return Index or the S&P BSE Midcap 150 Total Return Index. These indices track the performance of medium-sized companies in India.

5. What is an average return on a Mid Cap Fund?

Mid Cap Funds have the potential to deliver higher returns than Large Cap Funds, sometimes upwards of 15-18% over the long term. However, remember that higher potential returns also come with higher risk.

6. What is the ideal time horizon for a Mid Cap Fund?

Mid Cap Funds are best suited for investment horizons of 5-7 years or more. This allows them to navigate market fluctuations and capitalise on their growth potential.

7. Who should invest in a Mid Cap Fund?

Mid Cap Funds are a good fit for investors who:

• Have a higher risk appetite than those seeking large-cap stability
• Are seeking aggressive long-term growth
• Want to diversify their portfolio

8. What is the taxation applicable to a Mid Cap Fund?

As per the budget released on July 23, 2024:

1. Short-term Capital Gains (STCG): If you sell your equity mutual fund units within one year of purchase, the gains are considered STCG and are taxed at 20%.
2. Long-term Capital Gains (LTCG): If you sell your equity mutual fund units after one year of purchase, the gains are considered LTCG and are taxed at 12.5%. However, LTCG up to ₹1.25 lakh is exempt from tax.

Additional Points to Note:

• Securities Transaction Tax (STT): STT of 0.001% is levied on the sale of equity mutual funds and equity-oriented hybrid mutual funds.
• Dividend Distribution Tax (DDT): DDT has been abolished. Instead, dividends from mutual funds are now taxed in the hands of investors as per their income tax slab.

9. Is there any lock-in period?

No, Mid Cap Funds generally don't have lock-in periods. However, it's recommended to hold them for at least a year for tax efficiency.

10. Advantages of a Mid Cap Fund?

• High growth potential: Can outperform large-cap funds in bull markets.
• Diversification: Adds a different risk/return profile to your portfolio.

11. Disadvantages of a Mid Cap Fund?

• Higher volatility: More susceptible to market swings compared to large-cap funds.
• Company-specific risk: Performance can be significantly affected by individual company issues.

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

13. Want to know more about Mutual Funds?

Mutual Fund Explained

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Small-cap funds invest primarily in companies with relatively small market capitalizations, usually ranking between top 251 to 500 companies in India. They seek to uncover emerging companies with very high growth potential but carry significant risks.

Key Points:

• Highest risk/reward: Potential for explosive returns but with substantial volatility and risk of loss.
• Discovery focus: Aim to identify future market leaders in their early growth stages.
• Good for: Investors with a very high-risk tolerance and a long investment horizon.
• Important: Small-cap funds demand extensive analysis and are not suitable for short-term goals.

1. What is a Small Cap Fund?

Small Cap Funds are mutual funds that primarily invest in stocks of companies ranking below the top 250 in terms of market capitalization. These companies are typically smaller, less established, but offer the potential for very high growth.

2. Where does a Small Cap Fund Invest?

Small Cap Funds invest in a diverse range of smaller companies that may be undiscovered gems or up-and-coming players in various industries. These companies have the potential to become future market leaders.

3. How Can I Invest in a Small Cap Fund?

You can invest in Small Cap Funds through platforms like MINTIT. We make it easy to discover, compare, and invest in various small-cap options based on your goals.

4. What is the benchmark for a Small Cap Fund?

Popular benchmarks for Small Cap Funds include the Nifty Smallcap 250 Total Return Index or the S&P BSE Smallcap 250 Total Return Index. These indices reflect the performance of small-sized companies in India.

5. What is an average return on a Small Cap Fund?

Small Cap Funds have the potential to generate the highest returns among equity funds, but this comes with the highest risk. Historically, some funds have delivered 20%+ returns over extended periods.

6. What is the ideal time horizon for a Small Cap Fund?

Small Cap Funds demand patience. An investment horizon of 7 years or longer is ideal for them to overcome volatility and truly unlock their growth potential.

7. Who should invest in a Small Cap Fund?

Small Cap Funds are best for investors who:

• Have a very high-risk tolerance
• Seek significant long-term growth potential
• Want aggressive portfolio diversification with a small portion of their investment

8. What is the taxation applicable to a Small Cap Fund?

As per the budget released on July 23, 2024:

1. Short-term Capital Gains (STCG): If you sell your equity mutual fund units within one year of purchase, the gains are considered STCG and are taxed at 20%.
2. Long-term Capital Gains (LTCG): If you sell your equity mutual fund units after one year of purchase, the gains are considered LTCG and are taxed at 12.5%. However, LTCG up to ₹1.25 lakh is exempt from tax.

Additional Points to Note:

• Securities Transaction Tax (STT): STT of 0.001% is levied on the sale of equity mutual funds and equity-oriented hybrid mutual funds.
• Dividend Distribution Tax (DDT): DDT has been abolished. Instead, dividends from mutual funds are now taxed in the hands of investors as per their income tax slab.

9. Is there any lock-in period?

No, Small Cap Funds don't have mandatory lock-in periods. However, a long investment horizon is essential for realising their true potential.

10. Advantages of a Small Cap Fund?

• Explosive growth potential: Can deliver substantial long-term returns if you pick the right companies.
• Significant diversification: Adds a unique dimension to your portfolio with exposure to smaller companies.

11. Disadvantages of a Small Cap Fund?

• Very high risk: These funds are highly volatile and prone to significant short-term losses.
• Research-intensive: Picking the right small-cap companies requires more analysis than large and Mid-cap stocks.

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

13. Want to know more about Mutual Funds?

Mutual Fund Explained

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Flexi-cap funds have the flexibility to invest across companies of all sizes – large-cap, mid-cap, and small-cap. They adapt their portfolio based on market conditions and opportunities, aiming for a balance of growth and stability.

Key Points:

• Adaptable approach: Fund managers shift allocation to capitalise on opportunities across the market spectrum.
• Diversification: Offer exposure to various market segments in a single fund.
• Good for: Investors wanting a single-fund solution with some level of professional market timing.
• Important: Performance can still be impacted by overall market trends and fund manager decisions.

1. What is a Flexi Cap Fund?

Flexi Cap Funds are a type of equity mutual fund that have the flexibility to invest across companies of different market capitalizations - large-cap, mid-cap, and small-cap. They don't have fixed allocation percentages for each category.

2. Where does a Flexi Cap Fund Invest?

Flexi Cap Funds invest in a dynamic mix of stocks across the market spectrum. The fund manager actively shifts the portfolio based on market conditions and where they see the best growth opportunities.

3. How Can I Invest in a Flexi Cap Fund?

Like other types of funds, you can invest in Flexi Cap Funds through platforms like MINTIT! Browse, compare, and start investing in flexi-cap options that fit your needs.

4. What is the benchmark of a Flexi Cap Fund?

Flexi-cap funds are often benchmarked against broader indices like the NIFTY 500 Total Return Index or S&P BSE 500 Total Return Index , as these indices capture companies across the market capitalization spectrum.

5. What is an average return on a Flexi Cap Fund?

Flexi Cap Funds returns typically fall between those of Large Cap and Mid Cap Funds. They aim to provide a balance of stability and growth potential, with historical returns in the 12-15%+ range over the long term.

6. What is the ideal time horizon for a Flexi Cap Fund?

Ideally, aim for a minimum investment horizon of 5 years or more with Flexi Cap Funds. This gives them enough time to adapt to market cycles and deliver their intended results.

7. Who should invest in a Flexi Cap Fund?

Flexi Cap Funds are well-suited for investors who:

• Want a single fund to provide diversified exposure across market segments
• Prefer to leave market timing decisions to a professional fund manager
• Have a moderate to higher risk tolerance

8. What is the taxation applicable to a Flexi Cap Fund?

As per the budget released on July 23, 2024:

1. Short-term Capital Gains (STCG): If you sell your equity mutual fund units within one year of purchase, the gains are considered STCG and are taxed at 20%.
2. Long-term Capital Gains (LTCG): If you sell your equity mutual fund units after one year of purchase, the gains are considered LTCG and are taxed at 12.5%. However, LTCG up to ₹1.25 lakh is exempt from tax.

Additional Points to Note:

• Securities Transaction Tax (STT): STT of 0.001% is levied on the sale of equity mutual funds and equity-oriented hybrid mutual funds.
• Dividend Distribution Tax (DDT): DDT has been abolished. Instead, dividends from mutual funds are now taxed in the hands of investors as per their income tax slab.

9. Is there any lock-in period?

No, Flexi Cap Funds generally don't have any lock-in periods. However, it's recommended to maintain your investment for the suggested time horizon.

10. Advantages of a Flexi Cap Fund?

• Adaptability: Can capitalise on opportunities across market segments regardless of size.
• Professional management: The fund manager handles the complexities of market timing for you.
• Diversification: Offers built-in diversification within a single fund.

11. Disadvantages of a Flexi Cap Fund?

• May underperform in certain cycles: Might not always match the top returns of purely mid-cap or small-cap funds during their best periods.
• Dependence on fund manager: Performance can be influenced by the fund manager's decisions.

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

13. Want to know more about Mutual Funds?

Mutual Fund Explained

Ready to add the flexibility of Flexi Cap Funds to your portfolio?
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Multi-cap funds invest in a mix of large-cap, mid-cap, and small-cap stocks. They offer broad-market exposure with varying levels of risk and return potential.

Key points:

• All-in-one diversification: Provide exposure to a wide range of companies across market sizes.
• Balanced potential: Aim for a combination of stability from large caps and growth potential from smaller caps.
• Good: Investors seeking diversified market exposure through a single fund.
• Important: Returns might not match the peak performance of pure mid-cap or small-cap funds.

1. What is a Multi Cap Fund?

Multi Cap Funds are a type of equity mutual fund that invest in stocks of companies across various market capitalizations – large-cap, mid-cap, and small-cap in percentage defined for the category. This defined at least 25% of its assets to large-cap stocks, 25% to mid-cap stocks, and another 25% to small-cap stocks.

2. Where does a Multi Cap Fund Invest?

Multi Cap Funds spread their investments across a diverse range of companies with varying sizes. They include well-established giants, promising mid-sized companies, and emerging small-cap players with high growth potential.

3. How Can I Invest in a Multi Cap Fund?

Like other mutual funds, you can invest in Multi Cap Funds through platforms like MINTIT. We make it simple to understand, compare, and invest in the right multi-cap options.

4. What is the benchmark of a Multi Cap Fund?

Multi Cap Funds are often benchmarked against broader indices like the Nifty 500 Multicap 50:25:25 Total Return Index or the S&P BSE 500, which represent companies of different sizes across the market.

5. What is an average return on a Multi Cap Fund?

Multi Cap Funds aim for long-term growth that may fall between pure Large Cap and Mid Cap Funds. They have the potential to offer a good balance of risk and return, with historical averages in the 12-15%+ range over extended periods.

6. What is the ideal time horizon for a Multi Cap Fund?

A minimum investment horizon of 5 years or more is suitable for Multi Cap Funds. This longer time frame allows them to ride out market fluctuations and deliver on their growth potential.

7. Who should invest in a Multi Cap Fund?

Multi Cap Funds are a good choice for investors who:

• Seek broad market exposure through a single fund
• Have a moderate risk tolerance
• Want a diversified investment with long-term growth prospects

8. What is the taxation applicable to a Multi Cap Fund?

As per the budget released on July 23, 2024:

1. Short-term Capital Gains (STCG): If you sell your equity mutual fund units within one year of purchase, the gains are considered STCG and are taxed at 20%.
2. Long-term Capital Gains (LTCG): If you sell your equity mutual fund units after one year of purchase, the gains are considered LTCG and are taxed at 12.5%. However, LTCG up to ₹1.25 lakh is exempt from tax.

Additional Points to Note:

• Securities Transaction Tax (STT): STT of 0.001% is levied on the sale of equity mutual funds and equity-oriented hybrid mutual funds.
• Dividend Distribution Tax (DDT): DDT has been abolished. Instead, dividends from mutual funds are now taxed in the hands of investors as per their income tax slab.

9. Is there any lock-in period?

No, Multi Cap Funds typically don't have mandatory lock-in periods. However, a long-term investment approach is recommended for maximum benefits.

10. Advantages of a Multi Cap Fund?

• All-in-one diversification: Provide exposure to companies of all sizes in a single investment.
• Adapts to market conditions: The fund manager can shift the portfolio to capitalise on opportunities across different market segments.
• Balances risk and return: Aims for a combination of stability and growth potential.

11. Disadvantages of a Multi Cap Fund?

• May not be the top performer: Might not always match the explosive returns of focused mid-cap or small-cap funds during bull markets.
• The fund manager's decisions and market timing can influence fund manager dependence: Performance.

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

13. Want to know more about Mutual Funds?

Mutual Fund Explained

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Sectoral funds focus their investments on a single sector of the economy, such as banking, technology, or infrastructure. They offer targeted exposure to the growth potential of specific industries.

Key Points:

• Sector-specific focus: Performance is closely tied to the chosen sector's health and outlook.
• High risk/reward: Can outperform significantly during sector booms but carry substantial risk if the sector faces downturns.
• Good for: Investors with strong convictions about a specific sector and a high-risk tolerance.
• Important: Require specialised knowledge and understanding of the chosen sector.

1. What is a Sectoral Fund?

Sectoral Funds are a type of equity mutual fund that focus their investments on a specific sector or industry of the economy. Examples include banking funds, technology funds, infrastructure funds, etc.

2. Where does a Sectoral Fund Invest?

Sectoral Funds invest predominantly in stocks of companies operating within their chosen sector. For instance, a technology fund would invest heavily in IT companies, software developers, and technology-related businesses.

3. How Can I Invest in a Sectoral Fund?

As with other mutual funds, you can invest in Sectoral Funds through platforms like MINTIT. Here, you can explore funds focused on different sectors, compare their performance, and invest with ease.

4. What is the benchmark of a Sectoral Fund?

Sectoral Funds are typically benchmarked against sector-specific indices that track the performance of companies in that particular industry. For example, a banking and financial services fund might use the Nifty Financial Services TRI as its benchmark.

5. What is an average return on a Sectoral Fund?

Sectoral Fund returns are highly dependent on the performance of their chosen sector. They can deliver significantly higher returns than broader market funds when their sector is booming but also carry much higher risk during sector downturns.

6. What is the ideal time horizon for a Sectoral Fund?

Sectoral Funds are best suited for investors with knowledge of specific industries and a longer investment horizon of at least 5-7 years. This allows them to ride out sector-specific volatility.

7. Who should invest in a Sectoral Fund?

Sectoral Funds are suitable for investors who:

• Have a high-risk tolerance
• Possess knowledge or strong opinions about the prospects of a specific sector
• Seek to aggressively capitalise on sector-specific growth opportunities

8. What is the taxation applicable to a Sectoral Fund?

As per the budget released on July 23, 2024:

1. Short-term Capital Gains (STCG): If you sell your equity mutual fund units within one year of purchase, the gains are considered STCG and are taxed at 20%.
2. Long-term Capital Gains (LTCG): If you sell your equity mutual fund units after one year of purchase, the gains are considered LTCG and are taxed at 12.5%. However, LTCG up to ₹1.25 lakh is exempt from tax.

Additional Points to Note:

• Securities Transaction Tax (STT): STT of 0.001% is levied on the sale of equity mutual funds and equity-oriented hybrid mutual funds.
• Dividend Distribution Tax (DDT): DDT has been abolished. Instead, dividends from mutual funds are now taxed in the hands of investors as per their income tax slab.

9. Is there any lock-in period?

No, Sectoral Funds typically don't have lock-in periods. However, their focused nature demands a long-term investment approach to truly benefit from sector trends.

10. Advantages of a Sectoral Fund?

• High growth potential during sector booms: Can significantly outperform broader market funds when the chosen sector does well.
• Specialised exposure: Allows you to target specific industries you believe in.

11. Disadvantages of a Sectoral Fund?

• Very high risk: Vulnerable to sharp losses during sector downturns.
• Concentration risk: Performance is heavily tied to a single sector, not the overall market.
• Requires sector knowledge: Choosing the right sectoral fund demands informed decision-making.

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

13. Want to know more about Mutual Funds?

Mutual Fund Explained

Interested in the focused approach of Sectoral Funds?
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Thematic funds invest in companies aligned with a long-term theme or trend, like renewable energy, digital disruption, or healthcare innovation. They target sectors poised for long-term growth due to structural shifts in the economy.

Key Points:

• Focus on emerging trends: Capitalise on potential large-scale transformations in the market.
• High risk/reward: Can deliver significant gains if the theme succeeds but can also underperform if the trend falters.
• Good for: Investors with strong beliefs in specific long-term trends and a high-risk tolerance.
• Important: Success depends on the theme playing out favourably, which may not always occur.

1. What is a Thematic Fund?

Thematic Funds are a type of equity mutual fund that focus on investing in companies aligned with a specific theme or long-term trend. Examples include funds focused on technology disruption, renewable energy, electric vehicles, or healthcare innovation.

2. Where does a Thematic Fund Invest?

Thematic Funds invest in a range of companies linked to their chosen theme. This could include businesses directly involved in the theme, and those benefiting from the trend or providing supporting infrastructure.

3. How Can I Invest in a Thematic Fund?

Like other mutual funds, you can invest in Thematic Funds through platforms like MINTIT. We help you discover, compare and invest in thematic options that resonate with your investment goals.

4. What is the benchmark of a Thematic Fund?

Due to their specialised nature, Thematic Funds may use custom benchmarks or broader market indices depending on their specific focus.

5. What is an average return on a Thematic Fund?

Returns on Thematic Funds hinge on the success of their chosen theme. They have the potential for high growth if the theme plays out favourably but also carry substantial risk if the trend doesn't materialise as expected.

6. What is the ideal time horizon for a Thematic Fund?

Thematic Funds require a very long-term investment horizon, typically upwards of 7-10 years. This is because they bet on emerging trends that take time to mature and deliver results.

7. Who should invest in a Thematic Fund?

Thematic Funds are best suited for investors who:

• Have a very high-risk tolerance.
• Have strong conviction about the long-term potential of a specific theme.
• Want to gain exposure to emerging trends and potential disruptors.

8. What is the taxation applicable to a Thematic Fund?

As per the budget released on July 23, 2024:

1. Short-term Capital Gains (STCG): If you sell your equity mutual fund units within one year of purchase, the gains are considered STCG and are taxed at 20%.
2. Long-term Capital Gains (LTCG): If you sell your equity mutual fund units after one year of purchase, the gains are considered LTCG and are taxed at 12.5%. However, LTCG up to ₹1.25 lakh is exempt from tax.

Additional Points to Note:

• Securities Transaction Tax (STT): STT of 0.001% is levied on the sale of equity mutual funds and equity-oriented hybrid mutual funds.
• Dividend Distribution Tax (DDT): DDT has been abolished. Instead, dividends from mutual funds are now taxed in the hands of investors as per their income tax slab.

9. Is there any lock-in period?

No, Thematic Funds usually don't have lock-in periods. However, their long-term nature and focus on evolving trends make them unsuitable for short-term investment.

10. Advantages of a Thematic Fund?

• Access to emerging trends: Provides a way to invest in potentially transformative themes early on.
• Potential for high returns: Can deliver significant gains if the chosen theme takes off.

11. Disadvantages of a Thematic Fund?

• Very high risk: Performance is subject to the success of the theme, which may not always play out as predicted.
• Requires specialised knowledge: Choosing the right Thematic Fund demands understanding the trend and its potential.

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

13. Want to know more about Mutual Funds?

Mutual Fund Explained

Are you intrigued by the long-term focus of Thematic Funds?
MINTIT can help you explore options that align with your vision of the future.

Large & Mid Cap funds invest in a mix of large-cap and mid-cap stocks. They seek to combine the stability of large companies with the growth potential of mid-sized companies.

Key Points:

• Blending benefits: Offer a balance of stability from large-caps and growth potential from mid-caps.
• Moderate risk: Less volatile than pure mid-cap funds while offering higher returns potential than pure large-caps.
• Good for: Investors seeking a balance of risk and return with a long-term investment horizon.
• Important: Mid-cap exposure introduces some volatility to the overall portfolio.

1. What is a Large & Mid Cap Fund?

Large & Mid Cap Funds are a type of equity mutual fund that primarily invest in a mix of large-cap and mid-cap stocks. They offer a combination of stability from large-caps and growth potential from mid-caps.

2. Where does a Large & Mid Cap Fund Invest?

Large & Mid Cap Funds allocate their investments across well-established, large-cap companies and promising mid-cap companies with the potential for growth. The exact percentage split between the two categories can vary between funds.

3. How Can I Invest in a Large & Mid Cap Fund?

You can invest in Large & Mid Cap Funds through platforms like MINTIT, where it's easy to understand their strategies, compare their performance, and invest in those that match your goals.

4. What is the benchmark of a Large & Mid Cap Fund?

Large & Mid Cap Funds are often benchmarked against indices that combine large and mid-cap stocks, such as the NIFTY Large Midcap 250 Total Return Index or S&P BSE 250 Large MidCap Total Return Index.

5. What is an average return on a Large & Mid Cap Fund?

Large & Mid Cap Funds aim for returns that fall between pure large-cap and mid-cap funds. They offer a blend of stability and growth, with historical returns in the range of 12-15%+ over the long term.

6. What is the ideal time horizon for a Large & Mid Cap Fund?

An investment horizon of at least 5-7 years is recommended for Large & Mid Cap Funds. This allows them time to overcome short-term volatility and deliver their intended growth potential.

7. Who should invest in a Large & Mid Cap Fund?

Large & Mid Cap Funds are well-suited for investors who:

• Seek a balance between the stability of large-caps and the growth potential of mid-caps.
• Have a moderate to higher risk tolerance.
• Want to diversify your stock portfolio with one fund.

8. What is the taxation applicable to a Large & Mid Cap Fund?

As per the budget released on July 23, 2024:

1. Short-term Capital Gains (STCG): If you sell your equity mutual fund units within one year of purchase, the gains are considered STCG and are taxed at 20%.
2. Long-term Capital Gains (LTCG): If you sell your equity mutual fund units after one year of purchase, the gains are considered LTCG and are taxed at 12.5%. However, LTCG up to ₹1.25 lakh is exempt from tax.

Additional Points to Note:

• Securities Transaction Tax (STT): STT of 0.001% is levied on the sale of equity mutual funds and equity-oriented hybrid mutual funds.
• Dividend Distribution Tax (DDT): DDT has been abolished. Instead, dividends from mutual funds are now taxed in the hands of investors as per their income tax slab.

9. Is there any lock-in period?

No, Large & Mid Cap Funds usually don't have lock-in periods. However, they are best held for their suggested time horizon to maximise their potential.

10. Advantages of a Large & Mid Cap Fund?

• Combined benefits: Offer stability from large-caps and growth potential from mid-caps.
• Moderate risk: Provide a less volatile experience compared to pure mid-cap funds.
• Diversification within a fund: Exposure to both large and mid-sized companies.

11. Disadvantages of a Large & Mid Cap Fund?

• May not deliver top returns: Might lag behind pure mid-cap or small-cap funds during their strongest bull runs.
• Mid-cap volatility: The mid-cap component can still introduce some volatility to the portfolio.

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

13. Want to know more about Mutual Funds?

Mutual Fund Explained

Is a Large & Mid Cap Fund the right mix for you?
MINTIT can help you discover the top options and make informed investment decisions!

Index funds passively track a specific market index, like the Nifty 50 or S&P BSE Sensex, mirroring its composition and performance. They offer a low-cost way to gain broad market exposure.

Key Points:

• Passive investing: Replicate the index rather than trying to outperform it.
• Low fees: Typically have lower expense ratios compared to actively managed funds.
• Good for: Investors seeking long-term, diversified market exposure at a low cost.
• Important: Can't outperform their benchmark but can still experience losses during market downturns.

1. What is an Index Fund?

Index Funds are a type of mutual fund designed to mirror the composition and performance of a specific market index, such as the Nifty 50 or the S&P BSE Sensex. They passively track the index, buying and holding stocks in the same proportions.

2. Where does an Index Fund Invest?

Index Funds invest in the same stocks that make up their chosen benchmark index and in the same ratios. For instance, a Nifty 50 Index Fund would invest in the 50 companies of the Nifty 50, allocating funds according to their weights within the index.

3. How Can I Invest in an Index Fund?

Like other mutual funds, you can invest in Index Funds through platforms like MINTIT. We help you compare different index funds, understand their tracking indices, and invest with ease.

4. What is the benchmark of an Index Fund?

The benchmark of an Index Fund is the specific market index it aims to replicate, such as the Nifty 50, S&P BSE Sensex, or other specialised indices.

5. What is an average return on an Index Fund?

Index Funds closely mirror the returns of their underlying index. They aim to match the market performance, not outperform it. Historically, well-known indices have delivered long-term returns in the 12-15% range.

6. What is the ideal time horizon for an Index Fund?

Index Funds are ideal for long-term investors with a horizon of 5 years or more. This allows them to benefit from the overall market growth trend over time.

7. Who should invest in an Index Fund?

Index Funds are suitable for investors who:

• Seek a low-cost way to gain broad market exposure.
• Prefer a passive investment strategy that doesn't rely on fund manager choices.
• Have a long-term investment horizon.

8. What is the taxation applicable to an Index Fund?

Taxation rules are the same as other equity mutual funds:

As per the budget released on July 23, 2024:

1. Short-term Capital Gains (STCG): If you sell your equity mutual fund units within one year of purchase, the gains are considered STCG and are taxed at 20%.
2. Long-term Capital Gains (LTCG): If you sell your equity mutual fund units after one year of purchase, the gains are considered LTCG and are taxed at 12.5%. However, LTCG up to ₹1.25 lakh is exempt from tax.

Additional Points to Note:

• Securities Transaction Tax (STT): STT of 0.001% is levied on the sale of equity mutual funds and equity-oriented hybrid mutual funds.
• Dividend Distribution Tax (DDT): DDT has been abolished. Instead, dividends from mutual funds are now taxed in the hands of investors as per their income tax slab.

9. Is there any lock-in period?

No, Index Funds typically don't have any lock-in periods.

10. Advantages of an Index Fund?

• Low cost: Have lower expense ratios versus actively managed funds.
• Simple & transparent: Easy to understand, as they simply track an index.
• Matches market performance: Delivers returns in line with the overall market.

11. Disadvantages of an Index Fund?

• Limited upside: Can't outperform the market during bull runs.
• Downside risk: Will also decline along with the market during downturns.

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

13. Want to know more about Mutual Funds?

Mutual Fund Explained

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Equity-Linked Savings Schemes (ELSS) are tax-saving mutual funds offering tax deductions under Section 80C of the Income Tax Act. They primarily invest in equities, offering both tax benefits and growth potential.

Key Points:

• Tax benefits: Investments up to ₹1.5 lakhs per year are eligible for tax deductions.
• Long-term growth potential: Offer the potential for wealth creation along with tax savings.
• Good for: Investors seeking tax benefits and long-term equity growth.
• Important: Carry market risks like other equity funds and have a mandatory 3-year lock-in period.

1. What is an ELSS Fund?

ELSS Funds (Equity Linked Savings Schemes) are a type of equity mutual fund that offer tax benefits under Section 80C of the Income Tax Act, India. You can deduct up to ₹1.5 lakhs of your investment in ELSS funds from your taxable income each year.

2. Where does an ELSS Fund Invest?

ELSS Funds primarily invest in equity and equity-related securities (stocks). They typically have a diversified portfolio, often including large-cap, mid-cap, and small-cap companies for growth potential.

3. How Can I Invest in an ELSS Fund?

You can invest in ELSS Funds through platforms like MINTIT. MINTIT helps you compare different ELSS options, understand their investment strategies, and invest with ease.

4. What is the benchmark of an ELSS Fund?

ELSS Funds can be benchmarked against various market indices, typically broad-based ones like the NIFTY 50 Total Return Index or NIFTY 500 Total Return Index or S&P BSE 500 Total Return Index.

5. What is an average return on an ELSS Fund?

Since ELSS Funds are primarily equity funds, they carry the potential for long-term growth. Historically, top ELSS funds have delivered returns in the 12-15%+ range over extended periods.

6. What is the ideal time horizon for an ELSS Fund?

Due to their equity focus, ELSS Funds are best suited for a minimum investment horizon of 5-7 years. However, the key difference is the mandatory 3-year lock-in period.

7. Who should invest in an ELSS Fund?

ELSS Funds are a great option for investors who:

• Seek tax savings under Section 80C
• Want to invest in equity markets for long-term wealth creation
• Don't mind the mandatory 3-year lock-in period

8. What is the taxation applicable to an ELSS Fund?

Investment in ELSS Funds provides tax deductions. However, the gains are taxed like other equity funds:

As per the budget released on July 23, 2024:

1. Short-term Capital Gains (STCG): If you sell your equity mutual fund units within one year of purchase, the gains are considered STCG and are taxed at 20%.
2. Long-term Capital Gains (LTCG): If you sell your equity mutual fund units after one year of purchase, the gains are considered LTCG and are taxed at 12.5%. However, LTCG up to ₹1.25 lakh is exempt from tax.

Additional Points to Note:

• Securities Transaction Tax (STT): STT of 0.001% is levied on the sale of equity mutual funds and equity-oriented hybrid mutual funds.
• Dividend Distribution Tax (DDT): DDT has been abolished. Instead, dividends from mutual funds are now taxed in the hands of investors as per their income tax slab.

9. Is there any lock-in period?

Yes, ELSS Funds have a mandatory lock-in period of 3 years from the date of investment. You cannot withdraw your investment before this period.

10. Advantages of an ELSS Fund?

• Dual benefit: Offer tax savings along with the potential for long-term wealth creation.
• Forced discipline: The lock-in period encourages a long-term investment approach.
• Diversification: Often provide exposure to a mix of different sized companies.

11. Disadvantages of an ELSS Fund?

• Lock-in period: Your investment is locked for the initial 3 years.
• Market risk: As with other equity funds, returns are subject to market fluctuations.

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

13. Want to know more about Mutual Funds?

Mutual Fund Explained

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Focused funds invest in a concentrated portfolio of a limited number of stocks (around 20-30). They aim for high growth by selecting companies with strong potential based on the fund manager's analysis.

Key Points:

• Concentrated bets: Performance hinges on the success of a few carefully chosen stocks.
• High risk/reward: Potential for significant outperformance but also carry high risk due to their limited diversification.
• Good for: Investors with a high-risk tolerance and belief in the fund manager's stock selection skills.
• Important: Require careful evaluation of the fund's strategy and chosen holdings.

1. What is a Focused Fund?

Focused Funds are a type of equity mutual fund that invest in a limited number of stocks, typically around 20-30 companies. They have a highly concentrated portfolio versus diversified funds.

2. Where does a Focused Fund Invest?

Focused Funds invest in a carefully selected group of stocks often linked by a common theme, sector, or investment style. The fund manager aims to identify high-conviction investment ideas.

3. How Can I Invest in a Focused Fund?

You can invest in Focused Funds through platforms like MINTIT. We help you discover, compare, and invest in Focused Fund options that match your investment strategy and risk tolerance.

4. What is the benchmark of a Focused Fund?

Focused Funds can use a variety of benchmarks, often broad market indices like the NIFTY 500 Total Return Index or S&P BSE 500 Total Return Index. However, their concentrated nature means performance comparisons are less straightforward than with diversified funds.

5. What is an average return on a Focused Fund?

Focused Funds have the potential to significantly outperform broader markets when their chosen stocks do well. However, they carry a higher risk as their performance hinges on the success of a few companies.

6. What is the ideal time horizon for a Focused Fund?

Focused Funds suit investors with a long-term investment horizon of 5 years or more. This gives their selected stocks enough time to play out their growth potential.

7. Who should invest in a Focused Fund?

Focused Funds are suitable for investors who:

• Have a high-risk tolerance.
• Seek aggressive growth potential.
• Believe in the specific focus and stock selection of the fund manager.

8. What is the taxation applicable to a Focused Fund?

Taxation rules are the same as other equity mutual funds:

As per the budget released on July 23, 2024:

1. Short-term Capital Gains (STCG): If you sell your equity mutual fund units within one year of purchase, the gains are considered STCG and are taxed at 20%.
2. Long-term Capital Gains (LTCG): If you sell your equity mutual fund units after one year of purchase, the gains are considered LTCG and are taxed at 12.5%. However, LTCG up to ₹1.25 lakh is exempt from tax.

Additional Points to Note:

• Securities Transaction Tax (STT): STT of 0.001% is levied on the sale of equity mutual funds and equity-oriented hybrid mutual funds.
• Dividend Distribution Tax (DDT): DDT has been abolished. Instead, dividends from mutual funds are now taxed in the hands of investors as per their income tax slab.

9. Is there any lock-in period?

No, Focused Funds generally don't have any lock-in periods. However, their higher risk and concentrated nature make them more suitable for longer-term holding.

10. Advantages of a Focused Fund?

• High growth potential: Can deliver substantial returns if the chosen stocks perform exceptionally well.
• Focused expertise: Benefits from the fund manager's in-depth research and conviction on specific companies.

11. Disadvantages of a Focused Fund?

• Very high risk: Performance is heavily dependent on the success of a limited number of stocks.
• Concentration risk: Vulnerable to sharp downturns if any major holdings face difficulties.

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

13. Want to know more about Mutual Funds?

Mutual Fund Explained

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Value funds focus on stocks the fund manager believes are undervalued by the market. They seek companies with strong fundamentals trading below their perceived intrinsic worth.

Key Points:

• Bargain hunting: Look for mispriced opportunities where the market hasn't recognized a company's true value.
• Potential outperformance: Can outperform if the market eventually corrects the undervaluation.
• Good for: Investors with a long-term horizon and belief in the value investing philosophy.
• Important: Requires patience as it can take time for undervalued companies to be recognized.

1. What is a Value Fund?

Value Funds are a type of equity mutual fund that focus on investing in stocks that the fund manager believes are undervalued by the market. They seek companies with strong fundamentals trading at prices below their intrinsic worth.

2. Where does a Value Fund Invest?

Value Funds look for companies that may be temporarily out of favour, overlooked by the market, or facing short-term challenges. They analyse factors like price-to-earnings ratios, price-to-book ratios, and dividend yields to find promising value stocks.

3. How Can I Invest in a Value Fund?

As with other mutual funds, you can invest in Value Funds through platforms like MINTIT, where you can easily compare their performance and investment strategies.

4. What is the benchmark of a Value Fund?

Value Funds can use various benchmarks, but often rely on broader market indices like the NIFTY 500 Total Return Index or S&P BSE 500 Total Return Index. Some might utilise specialised value-focused indices.

5. What is an average return on a Value Fund?

Value Funds have the potential to outperform the market when undervalued stocks regain favour. Historically, the returns align with broader equity funds, in the 12-15%+ range over the long term, with the potential for outperformance during favourable cycles.

6. What is the ideal time horizon for a Value Fund?

Value Funds demand patience, with an investment horizon of at least 5-7 years. It takes time for the market to often recognize the true value of the companies the fund invests in.

7. Who should invest in a Value Fund?

Value Funds are suitable for investors who:

• Have a long-term investment horizon.
• Possess a higher risk tolerance, as value stocks can be temporarily volatile.
• Believe in the potential of fundamentally strong companies to recover from undervaluation.

8. What is the taxation applicable to a Value Fund?

Value Funds follow the same tax rules as other equity mutual funds:

As per the budget released on July 23, 2024:

1. Short-term Capital Gains (STCG): If you sell your equity mutual fund units within one year of purchase, the gains are considered STCG and are taxed at 20%.
2. Long-term Capital Gains (LTCG): If you sell your equity mutual fund units after one year of purchase, the gains are considered LTCG and are taxed at 12.5%. However, LTCG up to ₹1.25 lakh is exempt from tax.

Additional Points to Note:

• Securities Transaction Tax (STT): STT of 0.001% is levied on the sale of equity mutual funds and equity-oriented hybrid mutual funds.
• Dividend Distribution Tax (DDT): DDT has been abolished. Instead, dividends from mutual funds are now taxed in the hands of investors as per their income tax slab.

9. Is there any lock-in period?

No, Value Funds typically don't have any lock-in periods. However, their focus on long-term value realisation makes a long investment horizon essential.

10. Advantages of a Value Fund?

• Potential to buy quality stocks at a discount: Can capitalise on mispriced opportunities.
• Outperformance potential: May outperform the broader market when value investing is in favour.

11. Disadvantages of a Value Fund?

• Requires patience: Undervalued stocks might take time to reach their true potential.
• Underperformance during growth cycles: May lag behind high-growth stocks during bull markets.
• Value traps: The risk that companies remain undervalued or even decline further.

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

13. Want to know more about Mutual Funds?

Mutual Fund Explained

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Dividend Yield funds primarily invest in stocks of companies known for paying regular and high dividends. Their focus is consistent returns for investors.

Key Points:

• Income focus: Prioritise steady dividend payouts for a regular income stream.
• Lower volatility: Often involves stable companies, offering some resilience during market downturns.
• Good for: Investors seeking income, especially retirees, and those preferring lower volatility.
• Important: Returns can be limited if market focus shifts away from dividend-paying stocks.

1. What is a Dividend Yield Fund?

Dividend Yield Funds are a type of equity mutual fund that primarily invest in stocks of companies known for paying regular and high dividends. Their focus is on generating income for investors through these dividends.

2. Where does a Dividend Yield Fund Invest?

Dividend Yield Funds invest in mature, stable companies with a track record of consistent dividend payments. These can be across different sectors but often include established companies with strong cash flows.

3. How Can I Invest in a Dividend Yield Fund?

You can invest in Dividend Yield Funds through platforms like MINTIT. We help you compare funds based on their dividend yield, track record, and investment strategies.

4. What is the benchmark of a Dividend Yield Fund?

Dividend Yield Funds can use various benchmarks. Some use broad market indices like the Nifty 500 Total Return Index, while others might utilise specialised indices focused on high dividend-paying companies.

5. What is an average return on a Dividend Yield Fund?

Dividend Yield Funds offer a combination of dividend income and potential capital appreciation. Returns are usually less volatile than pure growth funds and can outperform during uncertain markets.

6. What is the ideal time horizon for a Dividend Yield Fund?

Dividend Yield Funds are typically suitable for investors with a moderate to long-term investment horizon(ideally 5 years or more). This allows for both consistent dividend income and potential growth in the value of your investment.

7. Who should invest in a Dividend Yield Fund?

Dividend Yield Funds are well-suited for investors who:

• Seek a regular income stream from their investments.
• Prefer relatively stable investments with lower volatility.
• Have a long-term investment horizon.

8. What is the taxation applicable to a Dividend Yield Fund?

Dividends received from Dividend Yield Funds are tax-free in the investor's hands. However, capital gains are taxed as per the rules for equity mutual funds:

As per the budget released on July 23, 2024:

1. Short-term Capital Gains (STCG): If you sell your equity mutual fund units within one year of purchase, the gains are considered STCG and are taxed at 20%.
2. Long-term Capital Gains (LTCG): If you sell your equity mutual fund units after one year of purchase, the gains are considered LTCG and are taxed at 12.5%. However, LTCG up to ₹1.25 lakh is exempt from tax.

Additional Points to Note:

• Securities Transaction Tax (STT): STT of 0.001% is levied on the sale of equity mutual funds and equity-oriented hybrid mutual funds.
• Dividend Distribution Tax (DDT): DDT has been abolished. Instead, dividends from mutual funds are now taxed in the hands of investors as per their income tax slab.

9. Is there any lock-in period?

No, Dividend Yield Funds don't typically have lock-in periods.

10. Advantages of a Dividend Yield Fund?

• Regular income source: Provide consistent dividend payouts.
• Lower volatility: Often involve stable companies, offering some protection during market downturns.
• Potential for capital growth: Price of the underlying stocks can still appreciate over time.

11. Disadvantages of a Dividend Yield Fund?

• Limited growth potential: May underperform high-growth stocks during strong bull markets.
• Company-specific risk: Performance can be affected by individual company issues, even in a diversified fund.
• Changes in dividend policy: Companies can reduce or suspend dividends, affecting the fund's income.

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

13. Want to know more about Mutual Funds?

Mutual Fund Explained

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