What is Mutual Fund?

An investment option; where people come together under one company/fund house; which invests money in different market options to earn profit for all. This way risk is been reduced very much in-comparison to investing directly into share markets.

Mutual Funds are completely transparent, professionally managed; provide complete liquidity of money and diversification of investments.

How does a Mutual Fund Works?

Mutual funds are pool of investments of number of investors who want to invest for a common objective, managed by professionals. The total amount thus collected than invested in various securities like shares, debentures and money market instruments. Profit generated through these investments is distributed among investors in proportion to their investments.

What is NAV?

Net Asset Value is the price of per unit declared by the mutual fund company after deducting all the applicable charges.

Is lower NAV of a scheme should be considered to generate better returns?

No, lower NAV does not guarantee better returns. NAV is just a number i.e. the current price to buy a scheme.

What is a NFO (New Fund Offer)?

An NFO or a New Fund Offer is a first time offer launched by the company, which is a new and unique preposition from the current set of schemes available with the company.

Do Mutual Fund schemes invest only in equities?

No, this is not necessary. Mutual funds offer various types of schemes depending on asset classes i.e. Equity, Debt and Gold.

What is SIP?

Systematic Investment Plan or Smart Investment Practice; it’s a way to invest fixed amount of money regularly (on weekly or monthly basis) depending upon your convenience; to sum-up, all the up and downs of Share Market in long term to generate wealth.

SIP Benefits

  1. Easy of investing (Can invest with as low as Rs.500 per month)
  2. Converting the risk into calculated risk or almost no risk.
  3. Adding up profits by covering market volatility.
  4. Adds Compounding effect to money.
  5. Tax Free Returns (if invested in long term, more than 1 year minimum).
  6. Proven track records of growth.
What is the minimum amount I can start investing in Mutual Fund?

You can start investing with as low as Rs.500 only.

Are Mutual Funds long term investment only?

No, you can invest in mutual fund even for 1 day also.

Is there any lock-in period in mutual fund schemes?

There is no lock-in period in the case of open-ended funds. ELSS (Equity Linked Tax Saving Schemes) has lock in period of 3 Years.

What is ELSS or Equity Linked Savings Scheme?

ELSS or Equity Linked Savings Scheme is a tax saving instrument which qualifies under section 80C.

What is the KYC and how to get KYC verified?

KYC is Know Your Customer. In order to bring uniformity in customer due diligence process in the securities market and also to avoid duplication of KYC Process across the intermediaries in the securities market, SEBI has developed a mechanism for centralization of the KYC records; SEBI vide Circular No. MIRSD/SE/Cir-21/2011 dated October 5, 2011, SEBI (KYC Registration Agency) Regulations, 2011 and Circular No. MIRSD/ Cir-26/ 2011 dated December 23, 2011 introduced the concept of KYC Registration Agency (KRA) effective January 01, 2012.

What are the charges in a mutual fund scheme?

We RupeeStop do not charge any fees.

However, Asset Management Company (AMC or Mutual Fund Company) charges fees on the portfolio it manages. The charges include professional fund management and regular operational costs which include investment management, advisory fees, sales/agent commissions and ongoing service fees, legal and audit fees, registrar and transfer agent fees, fund administration expenses, and marketing and selling expenses. All these expenses are a part of ‘total expense ratio’ (TER) which is charged on AUM in percentage terms and get lower down as AUM increases. The net asset value (NAV) of a mutual fund scheme is net of all expenses.

What are exit charges in Mutual Fund?

In most of the schemes there are 1% charges applicable is money is taken out within 12 to 18 months. After the specified period of 12-18 months no charges are applicable for part or full withdrawal.

What is Sale Price and Redemption price?

Sale price is the price you pay when you enter in a mutual fund scheme whereas the redemption or repurchase price is the price at which you sell your units or redeem your units.

How do I decide what the proportion of my debt and equity investments should be like?

There are number of factors which will determine your asset mix like your risk taking capabilities, age, financial position, income stability and liabilities. We at RUPEESTOP will help you to design the best asset allocation based on the above parameters.

How should I begin my mutual funds investment process?

Call us, Mail us. We will meet and share the basics of investing and will draft a financial plan for you.

Where, I can see my investments?

We at RUPEESTOP will provide you online platform where you can View your investments status.

You can also contact us for your investment details, statements and valuation reports will be provided at your doorstep. Also, statements will be sent to you from the respective AMC; in which you have invested in.

How Funds are Selected?

We choose funds by deeply studying its history, companies it is investing in & their performances, its return on short, medium & long term basis, comparison with other similar funds along with other criteria’s and finally on basis of your needs and goals funds are selected.

All the selections of fund are unbiased and are selected completely on our strict parameters.

Why only these Funds?

All the funds go through different selection parameters with back testing, study, suitability & rating of industry. Above all do they match with your goal planning or not.

When funds are changed?

We track funds very closely and stick to our plans, as what we have decided at the time of planning and investing.

We do not suggest any change or switches unless there is Complete change in Portfolio of fund (if its sector change) or change in style of investments of the fund and change of Fund Manager; due to which fund may not match our goals and we may suggest changes.


Can an NRI invest in mutual funds in India?


Can I nominate someone for my investment in Mutual Fund scheme?


Can I get loan on Mutual Funds?

Yes, loans are available against investments in Equity and Debt Mutual funds from all the leading Banks and NBFC on competitive interest rates.

Is Aadhar Mandatory?

Yes, Aadhar is mandatory for investing in a mutual fund scheme.

Who regulate mutual fund?

Securities and Exchange Board of India (SEBI).

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