Types of Mutual Funds

Created by Nagadeep M U, Modified on Fri, 13 Mar at 9:30 AM by Nagadeep M U

 

Fund Type:Scenario:Agent communication: Tagging: 
Equity FundsWhat are equity funds?Equity funds allow investment in the stocks of various companies.
These funds are professionally managed by fund managers who carefully select companies to invest in and monitor them on a regular basis.
They can be categorised based on investment strategy and focus.
For example: large-cap equity funds (invest predominantly in larger companies), mid-cap equity funds (invest in mid-sized companies), index funds (invest in stocks that form the stock market index such as Nifty 50 or S&P BSE Sensex), and so on.
 There are also equity funds that offer tax benefits under Section 80C, which are called tax-saving funds or ELSS funds.
Group: General Enquiries
Type: Mutual Funds
Issue type: Introduction to MF
Sub issue: Info given
 Status: Resolved
Benefits of investing in equity funds?As equity funds invest in shares of companies, their performance is linked to the stock market.
They are known to deliver better returns over a longer-term compared to most of the other categories of funds, but they also tend to be more volatile over the short term
Here are some benefits of investing in equity funds on PhonePe:
Professionally managed funds: Your money is managed by experienced fund managers who research thousands of companies in detail before investing your money.
Diversified fund portfolio: Fund managers invest their money in companies across different business sectors.
 This helps diversify investments and minimizes the risk in cases where a company or sector underperforms.
Group: General Enquiries
Type: Mutual Funds
Issue type: Enquiry on benefits
Sub issue: Info given
 Status: Resolved
Debt FundsWhat are debt funds?Debt funds are funds that allow investment in fixed-income securities like government securities, debentures, corporate bonds, and other money-market instruments
 They do not invest in the stock market, they offer reduced risk and are considered a relatively safe investment.
Group: General Enquiries
Type: Mutual Funds
Issue type: Introduction to MF
Sub issue: Info given
 Status: Resolved
Benefits of investing in debt funds?Higher returns: Debt funds have the potential to deliver better returns than investments in fixed deposits or savings accounts.
Safer investments: These funds are not exposed to stock market risks as your money is invested in debt securities issued by the government, large banks, and big companies, amongst others
They also provide stability to an investment portfolio.
Instant withdrawal: With open-ended debt funds, can withdraw money anytime as there is no lock-in period.
 Better savings: Investors can choose a convenient way of investment and accumulate their savings over a period of time.
Group: General Enquiries
Type: Mutual Funds
Issue type: Enquiry on benefits
Sub issue: Info given
 Status: Resolved
Hybrid FundsWhat are Hybrid funds?Hybrid funds are a type of funds that allow investment in both equity and debt funds to create a more balanced and diversified portfolio.
 Hybrid funds have the potential to offer higher returns over a long-term than traditional debt funds, and lower risk than equity funds.
Group: General Enquiries
Type: Mutual Funds
Issue type: Introduction to MF
Sub issue: Info given
 Status: Resolved
Benefits of investing in Hybrid funds?Investments in multiple asset classes: These funds invest in equity as well as debt funds, you can get exposure to both asset classes by investing only in a single fund.
 Diversification: These funds allow investment in both equity and debt funds, and also allow further diversify the portfolio by investing in different asset classes, such as large-cap, multi-cap for equity, and all types of debt funds.
Group: General Enquiries
Type: Mutual Funds
Issue type: Enquiry on benefits
Sub issue: Info given
 Status: Resolved
Super FundsWhat is a Super Fund?Super Funds are your all-in-one funds that invest in the best of mutual funds to optimize the safety and growth of your investment.
Some benefits of investing in Super Funds are:
The best funds, all in one place
You have access to the best debt and equity mutual funds in the market through a single fund, chosen by investment experts so that you do not have to worry about selecting funds individually every time you decide to invest
Funds to suit your investment goals
You can choose among three different funds and invest in one that suits you best. Experienced investment experts decide what percentage of your investment to go into which Fund i.e. debt and equity.
Dynamic fund allocation for growth and safety optimization.
Good to invest as these funds provide all-weather investing by dynamic fund allocation, where your portfolio is balanced based on market movement.
Managed by experts.
 Super Funds are actively managed by experts to take away the hassle of monitoring and rebalancing investment in multiple funds.
Group: General Enquiries
Type: Mutual Funds
Issue type: Introduction to MF
Sub issue: Info given
 Status: Resolved
Investment options available under super funds?There are currently three Super Funds available on PhonePe:
Conservative Super Funds:
A high percentage of investment is allocated towards debt funds to ensure a greater level of safety.
The Super Funds allocates measured investment in equity funds, ranging from 15-45%, depending on the market conditions.
While debt funds give you stable growth, equity funds boost returns in the long term.
Moderate Super Funds:
Investments are evenly distributed between equity and debt funds, with allocation ranging between 35-65% of each.
This helps in achieving a balance between growth and safety.
Aggressive Super Funds:
Higher returns and a higher percentage of investment go into equity funds with some investment in debt funds to control risk.
Investments in equity funds can range from 55% to 85% of your portfolio and the rest will be invested in debt funds.

 Note: These funds allow 10% of the portfolio to invest in gold funds for further distribution of investment.
Group: General Enquiries
Type: Mutual funds
Issue type: Investment enquires
Sub issue: Info given
 Status: Resolved
Super FundsBenefit of distributed asset allocation across equity, debt, and gold funds?Distributed asset allocation across asset types such as equity, debt, and gold optimizes the growth and safety of your investment.
These assets grow at different rates and often when one doesn’t do so well, the other tends to do much better.
This is how asset allocation helps in growing your money and also control risk, depending on the Super Funds type you choose.
Allocation across each of the asset types typically depends on the risk profile chosen and the relative attractiveness of each asset class.
 Super Funds on PhonePe offers three Super Funds with different asset allocation strategies to suit the investment goals.
Group: General Enquiries
Type: Mutual funds
Issue type: Introduction to MF
Sub issue: Info given
 Status: Resolved
Who manages Super Funds?Super funds are managed by experienced and professional fund managers from the Mutual Fund companies that provide these funds.Group: General Enquiries
Type: Mutual funds
Issue type: Introduction to MF
Sub issue: Info given
 Status: Resolved
Liquid FundsWhat are Liquid Funds?Liquid funds are a type of debt funds that allow investment in government securities, top banks, and other debt securities.
 It is considered to be one of the safest investment options for savings.
Group: General Enquiries
Type: Mutual Funds
Issue type: Introduction to MF
Sub issue: Info given
 Status: Resolved
Benefits of investing in Liquid Funds?Higher returns: You will earn higher returns when you invest in liquid funds, as compared to the returns you earn from your savings account.
Safe investments: You’re not exposed to the stock market risks as your money is invested in securities issued by the government, larger banks, and big companies, amongst others.
Anytime withdrawal: You can withdraw your money anytime as there is no lock-in period. You can withdraw your money even on weekends and public holidays.
Instant redemption: Your money will be credited into your bank account within minutes after you redeem your investment. You can instantly redeem up to 90% of your holding amount or up to ₹50,000 per day, whichever is lower.
 Better savings: You can choose a convenient way to invest your extra money and accumulate your savings over a period of time. 
Issue type: Enquiry on benefits
Sub issue: Info given
Group: General Enquiries
Type: Mutual Funds
 Status: Resolved
Liquid Funds lock-in period?These funds are not bound by any lock-in period.
 Can instantly redeem up to 90% of your holding amount or up to ₹50,000 per day, whichever is lower.
Group: General Enquiries
Type: Mutual Funds
Issue type: Enquiry on Lock-in period
Sub issue: Info given
 Status: Resolved
ELSS/Tax Saving FundsWhat are ELSS/tax saving funds?Tax Saving Funds, also known as Equity Linked Savings Scheme (ELSS), are equity mutual funds that allow you to enjoy tax benefits as defined under section 80C of the Income Tax Act.
 These funds have the lowest lock-in period of 3 years when compared to other tax saving options, such as fixed deposit (5 years), National Saving Certificate (NSC) (5-10 years), and Public Provident Fund (PPF) (15 years)
Group: General Enquiries
Type: Mutual Funds
Issue type: Introduction to MF
Sub issue: Info given
 Status: Resolved
Benefits of investing in tax-saving funds?If you are yet to make investments to save tax, we recommend that you get started with tax-saving funds
Here are some benefits of investing in tax saving funds on PhonePe:
Save up to ₹46,800: You could save up to ₹46,800 in tax per financial year, depending on your tax bracket.
Create wealth: When you invest in tax saving funds, you earn higher returns in the long term when compared to other tax saving options such as a bank fixed deposit (FD), National Saving Certificate (NSC) or Public Provident Fund (PPF).
Lowest lock-in period:
Tax saving funds have the lowest lock-in period of 3 years as compared to:
Bank FD: 5 years
NSC - 5 to 10 years
PPF - 15 years
Note: Lock-in period refers to the period of time during which you can’t sell the units you’ve invested in.
Professionally managed funds: Fund managers do the research for you and carefully choose companies to invest your money in, and also continuously monitor your investments.
Diversified investment portfolio: Fund managers will invest your money in companies across business sectors to diversify your investment and minimise the risk, if a company or sector doesn’t perform well.
 For example, if you invest just ₹1,000, you can purchase shares of as many as 40 top companies across different business sectors. So, even if a company doesn’t perform well in the stock market, you’re protected from the risk of loss
Group: General Enquiries
Type: Mutual Funds
Issue type: Enquiry on benefits
Sub issue: Info given
 Status: Resolved
Risks of investing in tax-saving funds?As tax-saving funds are primarily equity funds that invest in shares of companies, their performance is linked to the stock market. However, it’s much safer to invest in tax-saving funds than to directly invest in a company’s stocks for the below-mentioned reasons.
Professionally managed funds: Money is managed by experienced fund managers who research thousands of companies in detail before investing your money.
 Diversified fund portfolio: Fund managers will invest money in companies across business sectors to diversify your investment and minimise the risk of a company or sector doesn’t perform well
Group: General Enquiries
Type: Mutual Funds
Issue type: Enquiry on Funds security
Sub issue: Info given
 Status: Resolved
Tax benefits can I claim under Section 80C if I invest in tax-saving funds?Section 80C allows a maximum deduction of ₹1,50,000 from taxable income. However, the total tax saving depends on your tax bracket.
 Note: The government has imposed a cess of 4% for FY 2019-20 and FY 2020-21.
Group: General Enquiries
Type: Mutual Funds
Issue type: Enquiry on Tax payments
Sub issue: Info given
 Status: Resolved
Last date to claim deduction under Section 80C for a financial year?Can claim deduction under Section 80C on the last working day or before March 31st for a financial yearGroup: General Enquiries
Type: Mutual Funds
Issue type: Enquiry on Tax payments
Sub issue: Info given
 Status: Resolved
BSE MIN SIPWhat changes will be implemented for investors with Min SIP going LIVE?For applicable users, the SIP would be booked under their folio and will reflect in their account statements. Alongside, they will benefit from lower Min Investment value for SIPs.Group: General Enquiries
Type: Mutual funds
Issue type: SIP Enquiry
Sub issue: What is SIP
 Status: Resolved
Does it affect older SIPs?Any SIP set-up before the go-live will work as is in the older construct. Any new SIP set-up will be registered at BSE under their folio. (for applicable users under rollout plan only).Group: General Enquiries
Type: Mutual funds
Issue type: SIP Enquiry
Sub issue: What is SIP
 Status: Resolved

What is the maximum SIP amount? 

The criteria for SIP amount - UPI Autopay SIP - Max up to Rs.100000
 NACH SIP - Any amount.
Group: General Enquiries
Type: Mutual funds
Issue type: SIP Enquiry
Sub issue: What is SIP
 Status: Resolved

When is the 1st instalment payment? 

For UPI Autopay SIP - First SIP payment along with SIP setup.
 NACH SIP - No first payment at the time of SIP.
Group: General Enquiries
Type: Mutual funds
Issue type: SIP Enquiry
Sub issue: What is SIP
 Status: Resolved

What is the SIP gap between the first two instalments? 

For UPI Autopay SIP - First SIP payment along with SIP setup.
 NACH SIP - No first payment at the time of SIP.
Group: General Enquiries
Type: Mutual funds
Issue type: SIP Enquiry
Sub issue: What is SIP
 Status: Resolved

When will the first SIP Payment Happen for UPI Autopay SIP? 

For UPI Autopay SIP - At SIP setup.
 Example: On 14th Dec 2021, a user sets up SIP for 5th of every month for Rs 2000 using SBI bank (UPI autopay enabled), then 1st instalment will go on 14th Dec and 2nd SIP will go on 5th Feb and not 5th Jan as we need minimum 30 days b/w first two SIPs.
Group: General Enquiries
Type: Mutual funds
Issue type: SIP Enquiry
Sub issue: What is SIP
 Status: Resolved

When will the first SIP Payment Happen for NACH SIP? 

If SIP is after T+6 working days from setup date, then the first debit will happen in the same month, else next month.
 If on 6th December, a user sets up a SIP of Rs 3000 for the 15th of the month using a Union bank account (currently not enabled for UPI AutoPay), then 1st debit will happen on 15th December but if the date is 7th of every month, then the first debit will happen on 7th January.
Group: General Enquiries
Type: Mutual funds
Issue type: SIP Enquiry
Sub issue: What is SIP
 Status: Resolved


SOP Added12th March' 2026Nagadeep

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