Question 1

Is Mutual Fund Profitable?

Accepted Answer

Mutual funds are a type of investment where the investors pool their money and invest in stocks, bonds, and other securities. They can be profitable if you choose the right fund and also if you are invested in it for the long term.

Question 2

How to choose a mutual fund that suits your financial objective?

Accepted Answer

The first and foremost step is to decide on how much risk you are willing to take and investment tenure. Once you decide this, you can easily select the best mutual fund for you. At Groww, you can select from different categories of mutual funds such as high return, tax saving, top companies, and much more.

Question 3

Can I Withdraw Mutual Fund Anytime?

Accepted Answer

Mutual fund investors can withdraw their funds anytime they want to if they have invested in open-ended funds. You cannot do the same if it's an ELSS mutual fund.

Question 4

How to Invest in Mutual funds on Groww?

Accepted Answer

You can either use the website or download Groww mobile app to start investing in mutual funds on Groww.

Question 5

How much time does it take to start investing in MF on Groww?

Accepted Answer

The account opening process is completely free and paperless at Groww. If you have all the necessary details in place, it takes just 2 minutes.

Question 6

What is the commission charged by Groww on Mutual funds investment?

Accepted Answer

Groww charges a 0% commission on MF investment. You can freely choose from over 5000+ direct mutual funds and start your investing journey anytime.

Question 7

Are mutual funds taxable? If yes, then what are the charges on withdrawals?

Accepted Answer

Yes. For tax purposes, mutual funds are segregated into equity-oriented and debt-oriented. If the investment made in equity-oriented Mutual Funds is for less than 12 months, you have to pay 15% tax on returns. For any duration exceeding that, you will have to pay 10% on gains exceeding ₹1 lakh. Furthermore, if a fund's exposure to stocks is less than 65%, capital gains will be as per your tax slab if the holding period is less than 36 months. If the holding period exceeds 3 years, capital gains are taxed at 20% after the indexation benefit.

Question 8

How are returns earned in mutual funds?

Accepted Answer

Mutual funds offer returns to their investors’ returns in two forms - dividends and capital gains. Dividends are paid out when the company makes profits (if any). If the company has performed really well and is left with surplus cash, it may decide to share the same with investors in the form of dividends. Thus, dividends are rolled out to investors proportional to the number of mutual fund units held by them. A capital gain is the profit earned by investors in case the selling price of the security held by them is greater than the purchase price. Both dividends and capital gains from mutual funds are taxable.

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