Invest Smarter with Mutual Funds
Grow your wealth steadily with expert-managed portfolios. Start investing with as little as ₹100 through SIPs and benefit from professional fund management.
What is a Mutual Fund?
A mutual fund is an investment vehicle that collects money from multiple investors and invests it in a diversified portfolio such as stocks, bonds, government securities, and other financial instruments.
These funds are managed by professional fund managers who make investment decisions on behalf of investors. Mutual funds allow individuals to begin investing with small amounts while benefiting from diversification and expert management.
Instead of tracking markets daily or picking individual stocks, you can simply invest and let professionals handle the portfolio management.
Why Invest in Mutual Funds?
Low Entry Barrier
Investors can start with small contributions through SIPs. Many funds allow investments starting from as low as ₹100.
Professional Management
Qualified fund managers analyse markets, financial data, and company performance to make informed investment decisions.
Diversification
A single mutual fund invests across various companies and sectors, helping reduce risk compared to individual stocks.
Higher Returns Potential
Over the long term, mutual funds—especially equity-oriented funds—have historically delivered higher returns compared to savings accounts.
Liquidity
Investors can redeem their mutual fund units easily, except in schemes with lock-in periods such as ELSS.
Passive Investing
No need to monitor markets daily or make frequent trading decisions. Let professionals handle it for you.
Types of Mutual Funds
Equity Funds
Equity funds invest primarily in the shares of companies. These funds aim for long-term capital growth.
Suitable for:
Long-term investors, individuals looking to grow wealth, and those comfortable with market fluctuations.
Expected return:
Typically higher, but dependent on market performance.
Debt Funds
Debt funds invest in fixed-income instruments such as government bonds, corporate bonds, certificates of deposit, and other debt securities.
Suitable for:
Conservative investors, short-term goals, and individuals seeking stability.
Expected return:
Moderate and relatively stable.
Hybrid Funds
Hybrid funds invest in a mix of equity and debt instruments. The combination provides both growth potential and stability.
Suitable for:
New investors and those who want balanced risk and returns.
Expected return:
Balanced growth with moderate stability.
How Mutual Funds Work
An investor selects a mutual fund and invests either through SIP or lump sum.
The fund manager pools the money of all investors.
The pooled amount is invested in a diversified range of financial instruments.
The value of the investments grows or falls based on market performance.
Investors earn returns through capital appreciation, dividends, or interest.
Investors can redeem their units at the prevailing NAV (Net Asset Value) whenever they need to exit the investment.
SIP vs Lump Sum
SIP (Systematic Investment Plan)
- ✓Investing a fixed amount every month
- ✓Ideal for salaried individuals or beginners
- ✓Provides the benefit of rupee-cost averaging
- ✓Builds discipline and habit of saving
Example: A monthly SIP of ₹2,000 for 15 years may potentially grow into ₹10–12 lakh depending on the fund's performance.
Lump Sum Investment
- ✓Investing a large amount at once
- ✓Suitable for those with surplus funds available
- ✓Can be a good option if market valuations are attractive
- ✓Allows immediate capital deployment
Flexibility: You can combine both SIP and lump sum to optimize your investment strategy.
Illustrative Examples
Example 1:
Investing ₹1,000 per month for 10 years may grow to approximately ₹2–2.5 lakh depending on market conditions.
Example 2:
Investing ₹5,000 per month for 20 years may create a corpus of ₹50–60 lakh, assuming consistent market performance.
Example 3:
Investing ₹1,00,000 in a debt fund for one year may yield around ₹6,000–8,000 in returns, depending on interest rate conditions.
⚠️ Disclaimer:
These are illustrative examples only. Actual returns may vary based on market performance, fund selection, and investment period. Past performance is not indicative of future results.
Who Should Invest in Mutual Funds?
Individuals aiming to build long-term wealth
Salaried professionals with regular income
Parents planning for children's education
Investors seeking higher returns than fixed deposits
First-time investors who prefer professional management
Anyone looking to diversify their investment portfolio
Understanding Risks
Market volatility may cause fluctuations in value
Returns are not guaranteed
Short-term losses are possible
Choosing unsuitable funds may affect performance
How to Manage Risk: These risks can be managed through long-term investing, diversification across different fund types, and selecting well-performing funds aligned with your risk profile.
Why Choose Stockstrail for Mutual Funds?
AMFI-Registered
Licensed mutual fund distributor ensuring compliance and transparency.
Transparent Guidance
Recommendations based on your financial goals and risk tolerance.
Expert Selection
Assistance in choosing from 100+ mutual fund schemes across all categories.
SIP Planning
Customized SIP amounts tailored to your financial objectives and budget.
Paperless Process
Simple, quick, and entirely online investment process.
Ongoing Support
Portfolio reviews, rebalancing, and continuous support.
How to Start Investing in 6 Simple Steps
Share your basic details and complete KYC verification
Discuss your financial goals with Stockstrail experts
Choose between SIP (monthly) or lump sum investment
Receive personalized fund recommendations
Complete a simple online investment process
Track and manage your portfolio anytime on the platform