Process Steps

Action/ Response

GTIS

Why these funds? OR

How have you selected these funds?

Our team of experts have curated these fund portfolios based on detailed assessment of funds across categories. They use inputs from the CRISP research framework from our research team and other qualitative parameters. CRISP stands for Consistency, Risk and Investment style of the Portfolio. Also, the funds have been chosen so that they complement each other. These are suitable for the core component of an investor’s long term wealth creation portfolio and investors can choose based on their risk comfort.

Optional (if users wants to understand more)

We believe there are largely three components of investment portfolio:

Core long-term component: This is the component for which our expert team has created these fund portfolios.

Satellite component: These funds are typically very high risk investments with high return potential.. But can be considered only once core long term portfolio is in place and that too if an investor is comfortable with significant downside. Investors typically chase such categories based on past performance but that’s not the right approach.. Strong 1/3/5 year returns doesn’t necessarily mean one should invest in such funds. Small cap funds, sectoral funds, thematic funds, etc are examples of such funds.

Short term or Liquidity component: These are short term investments, typically where one has say less than three year investment horizon. These should be relatively safer investments with no big ups and downs so that investors can easily withdraw their investments without worrying too much about ups and downs.

Liquid funds, Arbitrage, Income Plus Arbitrage, Short term bond funds, corporate bond funds are some of the examples of such funds.

Group: General Enquiries

Type: Mutual Funds 

Issue: Investment suggestions

Sub Issue: Info given

Status: Resolved

These funds are not the best on returns, so why are you suggesting these funds?

One of the biggest mistakes investors make is to invest based on past performance of funds without understanding the risks, i.e. ups and downs associated with the fund or without understanding whether the fund is suitable for them. Also, the funds with best returns DO change over time - i.e. the funds with highest returns over the past 1/3 years can easily be the worst performers in the next 1/3 years.

Group: General Enquiries

Type: Mutual Funds 

Issue: Investment suggestions

Sub Issue: Info given

Status: Resolved

Why not invest in these funds for the short term ?

These funds should be looked at from a long term perspective because these are equity oriented funds and while they tend to deliver better returns over the long term, they also tend to go through significant short term ups and downs as their underlying investment is predominantly in stocks.

Group: General Enquiries

Type: Mutual Funds 

Issue: Investment suggestions

Sub Issue: Info given

Status: Resolved

Is there a lock-in in these funds?

No, there is no lock-in in these funds but most equity funds will have a small exit load of 1% or so if you withdraw within 1 or 2 years. Except for such a small exit load in the initial year or so, there is no other constraint that stops investors from withdrawing their investment. But the reason these funds should be looked at from a long term perspective is because these are equity oriented funds and while they tend to deliver better returns over the long term, they also tend to go through significant short term ups and downs as their underlying investment is predominantly in stocks.

Group: General Enquiries

Type: Mutual Funds 

Issue: Investment suggestions

Sub Issue: Info given

Status: Resolved

Can I replace one of these funds with another?

These funds are curated by our experts based on various important parameters and the funds chosen also complement each other well. Hence it may be good to stick to these funds. But if you want to replace any of the funds, then it may be appropriate to look at funds from short listed funds we have under respective categories with similar investment styles.

Group: General Enquiries

Type: Mutual Funds 

Issue: Investment suggestions

Sub Issue: Routed to best SIP funds

Status: Resolved

What are the right funds for short term (< 3 years)

For short term investment, equity funds are not suitable since they tend to witness significant ups and downs on a daily basis. Relatively lower risk funds such as Liquid funds, Arbitrage, Income Plus Arbitrage, Short term bond funds, corporate bond funds are the type of funds suitable for such short term investment.

For now you can explore our Best SIPs curated.

Group: General Enquiries

Type: Mutual Funds 

Issue: Investment suggestions

Sub Issue: Routed to best SIP funds

Status: Resolved

Shall I invest via SIP or lump sum?

Equity funds are known for their higher long term return potential but they also come up with significant short term ups and downs. To mitigate risk due to such short term ups and downs, it is better to invest via SIPs. With SIP, since you invest a fixed amount every month, you automatically buy more units of mutual funds when markets are down (lower NAV) and less units when markets go up (higher NAV). This is called averaging and it helps to reduce the short term risk.

However, if an investor has lump sum money to invest and is willing to invest it for a long term like over 5 years, then making a lump sum investment should also be fine. The only thing an investor needs to remember is that he / she  should not panic if the market goes down. One should stay invested for the long term to benefit from the power of equity investing.

Group: General Enquiries

Type: Mutual Funds 

Issue: Investment suggestions

Sub Issue: Info given

Status: Resolved

Is this the right time to invest?

If you are willing to invest in such funds for a long term like 5 years or more, then any time is a good time to invest. The only thing you need to remember is that you should not panic if the market goes down. You should stay invested for the long term to benefit from the power of equity investing.

However, if you are not comfortable with the short term ups and downs, it is better to invest via SIPs. Any time is a good time to start a SIP. Since you invest a fixed amount every month, you automatically buy more units of mutual funds when markets are down (lower NAV) and less units when markets go up (higher NAV). This is called averaging and it helps to reduce the short term risk.

Group: General Enquiries

Type: Mutual Funds 

Issue: Investment suggestions

Sub Issue: Info given

Status: Resolved

Will my investments be safe?

Mutual funds are subject to market risks, i,e, ups and downs in the market. Equity oriented mutual funds, in particular, tend to see sharper movements. Also, there are no fixed or guaranteed returns in mutual funds but over the long term, they are known to deliver better returns. In terms of regulations, mutual funds are one of the highly regulated investment products in the country. It is regulated by  SEBI, the Securities and Exchange Board of India. SEBI is the regulatory body established by the Government of India to protect the interests of investors in securities and to regulate the securities market.

Additionally, mutual funds are offered by highly reputed groups such as SBI, HDFC, ICICI, Kotak, and other such institutions. 

With regards to getting your money back – the process is designed to be straightforward. When you invest through the PhonePe app, you'll be able to redeem your investments with a few clicks.

When you choose to redeem, the money will be credited back to the same bank account you used to make the investment. As for the timeline, it can vary slightly depending on the type of fund.

<In short explain the cut-off times and redemption timelines- Debt 1 working day, Equity 2 working days>

Group: General Enquiries

Type: Mutual Funds 

Issue: Investment suggestions

Sub Issue: Info given

Status: Resolved

What kind of returns can I expect to earn from these funds

While it's impossible to predict exact future returns for any fund, we can look at historical trends for context. Historically, long-term returns from broader equity markets have been in line with nominal economic growth or GDP growth. However, over the short term, it can be quite volatile. The long-term returns of most equity funds have been in the range of 12-15%. However, it’s important to remember that future returns can be different. India’s long-term nominal growth has been in the range of 10-12% in recent years.

With regards to the funds pack/list, these fund portfolios have been curated by our experts based on detailed assessment of funds across categories. They use inputs from the CRISP research framework from our research team and other qualitative parameters. CRISP stands for Consistency, Risk and Investment style of the Portfolio. Also, the funds have been chosen so that they complement each other. These are suitable for the core component of an investor’s long term wealth creation portfolio and investors can choose based on their risk comfort.

Group: General Enquiries

Type: Mutual Funds 

Issue: Investment suggestions

Sub Issue: Info given

Status: Resolved

Should I never invest in small caps?

Small cap funds are typically suitable for seasoned investors with a high risk appetite who understand the risks involved in small cap investing. Even for such investors, it's advisable to take controlled exposure, say maximum of 20% of their portfolio. For most others, it is better to stick to diversified equity funds which also invest in small cap stocks, but in a measured manner.

However, for those who are comfortable with extreme risk in small cap funds, a staggered investment approach by way of an SIP, makes more sense given that their returns are highly volatile over shorter time periods. Also it is very important that the investments in such funds is made with a very long term horizon like 5+ years.

Group: General Enquiries

Type: Mutual Funds 

Issue: Investment suggestions

Sub Issue: Info given

Status: Resolved

What is CRISP?

CRISP stands for Consistency, Risk vs category peers, and Investment Style of the Portfolio. Essentially, it's a tool that our Research team has developed to help simplify mutual fund investment decisions. It takes complex data about a mutual fund's performance, risk, and how it invests, and turns that into easier-to-understand insights.

In short, with CRISP framework you get an insight into three key things:

i) Performance Consistency: How consistently a fund has performed compared to similar funds over time.

ii) Relative Risk: Whether the fund takes on acceptable levels of risk compared to its peers within its own fund category.

iii) Investment Style: It helps you understand the fund's main investment approach – like whether it focuses on Quality, Value or Momentum stocks – and how consistently it sticks to that style.

This analysis helps in getting a clearer picture of a fund's characteristics. You can find the CRISP analysis for core equity funds on the PhonePe platform.

Group: General Enquiries

Type: Mutual Funds 

Issue: Investment suggestions

Sub Issue: Info given

Status: Resolved

Can I switch between these funds later?

Our team of experts have curated these fund portfolios based on detailed assessment of funds across categories. They use inputs from the CRISP research framework from our research team and other qualitative parameters. CRISP stands for Consistency, Risk and Investment style of the Portfolio. Also, the funds have been chosen so that they complement each other. These are suitable for the core component of an investor’s long term wealth creation portfolio and investors can choose based on their risk comfort.

The reason why our experts created these fund portfolios was for investors who are not sure where to start according to their long term goals and as per their own assessment of risk appetite. Once you have experience with mutual fund investing and if you decide to invest in some other funds at a later stage, you can do so after assessing it on the CRISP parameters and suitability for the investment goal.

Group: General Enquiries

Type: Mutual Funds 

Issue: Investment suggestions

Sub Issue: Info given

Status: Resolved

What should I do if you change funds in these packs/lists?

These funds have been selected for long term goals. Thus it is highly unlikely that the funds on this list will change frequently. These funds are from institutions which have a proven long term track record and well established investment processes and teams.

However, even if at a later point in time, for some reason, you find these funds to not be right for you, either due to them not being part of the curated list or you find these funds not suitable for your goal, you can easily move your money from one fund to another.

Group: General Enquiries

Type: Mutual Funds 

Issue: Investment suggestions

Sub Issue: Info given

Status: Resolved

Why invest in a Regular Plan? OR

You are offering Regular plans only. OR

Expense ratio is higher.

Broadly, there are three mutual fund intermediation business models - (a) mutual fund distribution model where an intermediary offers regular plans and earns a small commission from mutual funds, (b) Registered Investment Advisor (RIA) model where an intermediary offers direct plans and charges an advisory fee from the investor and (c) Execution Only model where intermediaries offer direct plans without any value added services.

We have opted for the first model, i.e. mutual fund distribution model since we believe a large majority of investors need assistance and other value added services while investing in mutual funds. For example, we have recently launched CRISP (Consistency, Risk and Investment Style of the Portfolio) framework to help investors in assessing funds. We also offer research backed curated lists of funds across categories to help investors choose right funds. There’s also educational content we share with the investors to help them make better investment decisions. Likewise we offer call-back services to assist investors in investing and address operational issues. We are also in the process of launching many more new features in the coming months to help investors in investment decision making and effectively managing their mutual funds portfolios.

The second model (b) is where RIAs charge from investors and this fee can vary across RIAs. The platforms using the third model (c) only offer transaction services and they cannot offer any investment assistance / advice to investors.

Investors who need investment assistance and other value added services typically opt for the intermediaries that follow MFD model or RIA model.

Group: General Enquiries

Type: Mutual Funds 

Issue: Investment suggestions

Sub Issue: Info given

Status: Resolved

What is the difference between Mutual Funds and SIP? OR

I want to invest in SIP and not Mutual Funds. How do I do that?

A mutual fund is an investment product which pools money from many investors and invested into different assets like stocks, bonds, gold, etc. Mutual funds are managed by a professional fund manager. An SIP on the other hand, stands for Systematic Investment Plan. It isn't a separate product by itself. It is actually a method or a way to invest in a Mutual Fund. It allows you to invest a fixed amount of money regularly, for example – every month – into a Mutual Fund scheme which you choose.

So, when you say you want to invest in an SIP, you are actually using the SIP method to invest in a Mutual Fund. It's a popular way to invest for the long term because it helps build discipline and also reduces the impact of short term ups and downs in the market.

Group: General Enquiries

Type: Mutual Funds 

Issue: Investment suggestions

Sub Issue: Info given

Status: Resolved

What is the difference between CAGR, XIRR and IRR?

Think of CAGR as the average annual rate at which your lump-sum/one-time investment grew to achieve its current value. For example – If you invested ₹100 and it grew to ₹121 after 2 years, the CAGR is 10% per year. (Year 1: ₹100 to ₹110; Year 2: ₹110 to ₹121). You will typically come across this in case of Bank FDs, Post office deposits or other fixed income investments.

XIRR is also the annualised rate of returns, but in case of your investments in certain investments such as Mutual Funds, stocks, etc. wherein you have multiple investments (SIP, Lumpsump, etc.) and withdrawals on different dates. For example: If you invest ₹1000 via a monthly SIP for 2 years, XIRR considers that each monthly SIP of ₹1000 was invested for a different length of time to give you a single, overall annualized return for your specific investment pattern over the course of 2 years.

<If they ask about IRR may explain the following>

IRR (Internal Rate of Return) and XIRR are essentially the same. Just that IRR is a more simpler version of XIRR. It is used in cases where the investment occurs periodically. However, in the real world, people invest and withdraw money as per their requirements which usually happens at different points in time and hence XIRR helps you calculate the actual annualised returns over your entire investment journey.

Group: General Enquiries

Type: Mutual Funds 

Issue: Investment suggestions

Sub Issue: Info given

Status: Resolved

Why do XIRR and Total returns appear different?

XIRR and Total Returns can look different because Total Return, or more commonly referred to as Absolute Return, is the simple overall growth of your investment. FOr example, if you invested a total of ₹10,000 and it's now worth ₹12,000, your total/absolute return is ₹2,000, or 20%. This doesn't factor in how long it took or the timing of individual investments.

How it is different from XIRR. When calculating XIRR, we annualize your returns as returns are time-sensitive. In the previous example, you earning Rs. 2,000 is true. But it actually matters to you whether you earn it in 1 year or 2 years or 5 years and the time taken by each of your investments to grow over your investment period.

So, Total/Absolute Returns tells you the overall gain on your initial investment, while XIRR gives you a more precise, personalized annualized return reflecting the timing of all your transactions.

Group: General Enquiries

Type: Mutual Funds 

Issue: Investment suggestions

Sub Issue: Info given

Status: Resolved

How much commission do you get if I invest on PhonePe?

Depending on the scheme where you invest, the Mutual Fund company pays anywhere from 0.1% - 1% over a period of 1 year. That helps us provide you services such as research for shortlisting the right set of funds in various categories, maintaining the platform, ensuring smooth transactions and help you provide you the support for anything related to your on our platform.

Group: General Enquiries

Type: Mutual Funds 

Issue: Investment suggestions

Sub Issue: Info given

Status: Resolved

What is the difference between Aggressive and Moderately Aggressive?

The two portfolios are created by our research team to help with long-term wealth creation, but they are designed for investors with different comfort levels when it comes to risk. The main difference lies in the risk appetite they are suited for.

Aggressive portfolios are generally designed for investors who are willing and able to take on higher risk with the potential for higher returns. These portfolios might have a larger allocation to investments like equities, which can be more volatile. Moderately Aggressive portfolios aim for a balance. They still seek growth but typically take on less risk than a fully aggressive portfolio. This means a more balanced mix of equities with debt which is a relatively more stable asset class.

Your personal risk appetite depends on factors such as your age, financial stability, ability to save and invest and how comfortable you are with seeing your investment value fluctuate for potentially higher long-term growth. However, please note that currently we are not doing risk profiling of our investors, but our team is working on bringing the risk profiler feature in our app in the near future.

Group: General Enquiries

Type: Mutual Funds 

Issue: Investment suggestions

Sub Issue: Info given

Status: Resolved

Will I get good returns if I invest for a long period?

Although returns are not guaranteed, it is generally suggested to invest for a longer duration, typically more than 5 years, to help mitigate uncertainties that may impact returns. Short-term market movements can be highly volatile, so allowing your investment time to absorb this volatility and recover is important. While long-term investing reduces the risk of negative returns, the potential gains cannot be predicted with certainty.

Group: General Enquiries

Type: Mutual Funds 

Issue: Investment suggestions

Sub Issue: Info given

Status: Resolved

Why does the customer face any risk when investing in mutual funds? OR

What are the risks of investing in mutual funds, and is there a chance of losing money?

Investing in mutual funds always involves some risk, as they are directly tied to market performance. Any rise or fall in the market can impact your portfolio, either in a positive or negative way.

However, the mutual fund industry has a proven track record of more than 3 decades of not having any major financial wrong doings given the tight regulatory framework under which the AMCs have been operating.

With mutual funds you can achieve diversification – an important way of mitigating risk. Also, it is proven that investors are able to mitigate the volatility by a combination of systematic investing AND staying invested for the long term.

Though one needs to understand that, on shorter time-freames, your investment may be affected by market fluctuations, particularly in equity funds.

Group: General Enquiries

Type: Mutual Funds 

Issue: Investment suggestions

Sub Issue: Info given

Status: Resolved

I don't want to take the risk with my money. Can you suggest low-risk funds?

If you are risk-averse regardless of your age, investment, or financial goals, it is generally suggested to invest in debt funds, which are suitable for highly conservative investors. However, please note that the returns from debt funds tend to be lower compared to other types of funds, hence one needs to moderate their expectations accordingly.

Relatively lower risk funds such as Liquid funds, Arbitrage, Income Plus Arbitrage, Short term bond funds, corporate bond funds are the type of funds suitable for more stable returns.

Group: General Enquiries

Type: Mutual Funds 

Issue: Investment suggestions

Sub Issue: Info given

Status: Resolved

As I'm investing for the first time, how much should I invest?

The amount you should invest usually depends on the final corpus you aim to build by the end of your investment goal. If your goal is clearly defined, along with the timeline to achieve it and an expected rate of return, it becomes easier to calculate how much you need to invest regularly. You can use our Wealth calculator to identify how much you need to invest for your particular financial goal.

<If they find the amount too big to start, we can say the following>

Alternatively, you can always begin with a small amount and gradually increase it as you gain a better understanding of the risk involved, your investment goals, and your time horizon. As you become more comfortable and familiar with market behavior, you can choose to invest more.

Group: General Enquiries

Type: Mutual Funds 

Issue: Investment suggestions

Sub Issue: Info given

Status: Resolved

Is it okay if I start investing in Fund XYZ?

Funds are generally chosen based on a person's age, risk appetite, investment duration, and financial goals.

With regards to investment duration, if one is looking to invest for long-term goals, like wealth creation, retirement, etc. i.e. over several years equity-oriented funds is suitable for these purposes. Historically equities have delivered better returns over the long term but they also come with significant ups and downs, i.e. they are volatile in the short term. Thus, if your requirement is to invest for the long term and your age and risk appetite allow for it then our team of experts has curated a few portfolios, to make the choice of funds easier. They are created using our in-house CRISP research framework (which stands for Consistency, Risk, and Investment style) and other qualitative checks. The funds in each of the portfolios are chosen to complement each other to diversify.

For short term investment, equity funds are not suitable since they tend to witness significant ups and downs on a daily basis. Relatively lower risk funds such as Liquid funds, Arbitrage, Income Plus Arbitrage, Short term bond funds, corporate bond funds are the type of funds suitable for such short term investment.

So, the key is to first think about your investment timeframe – are you investing for the long term or the short term? That, along with factors such as your age, risk appetite,etc. will help guide you to make the right choice.

Group: General Enquiries

Type: Mutual Funds 

Issue: Investment suggestions

Sub Issue: Info given

Status: Resolved