As I am new to this finance field ,I have many small doubts and all regarding Mutual fund .it would be great if you help me out in this. TIA
1.What is lumps in mutual fund?
2.I have started monthly SIP on mutual fund recently with lock period of 3 years.Is it possible to start SIP without lock period? 3.Is it possible that I can go for NON-SIP kind of mutual fund with no lock period and with lock period?
4.Say If I can dump some money at a time , Is there any minimum and maximum type of restriction?
5.Are there any mutual funds with lock period of 10years or more the that 15,20 years?
1.What is lumps in mutual fund?
[Answer]: Lumps sum mean you buy MF units in one go.
2.I have started monthly SIP on mutual fund recently with lock period of 3 years.Is it possible to start SIP without lock period?
[Answer]: The lock in only for Tax saving MF and close ended schemes. It seems someone miss-sold you a MF. Can you let us know what MF you had invested?
3.Is it possible that I can go for NON-SIP kind of mutual fund with no lock period and with lock period?
[Answer]: yes. You can do lump sum investment in any of open ended schemes.
4.Say If I can dump some money at a time , Is there any minimum and maximum type of restriction?
[Answer]: each MF AMC has different rules but on average it varies between Rs 1000 to Rs 5000 for minimum. For maximum you need to check with MF AMC.
5.Are there any mutual funds with lock period of 10years or more the that 15,20 years?
[Answer]: Why do you want such a long lock in period?
As, Naveen pointed out, the lock-in is only for ELSS fund. However, I don’t think there is any misselling here. If your objective is to save tax via MFs, then ELSS is the only option.
Yes, you can start SIPs in any open-ended schemes. You have the flexibility to start and stop your SIPs anytime you want.
No, MFs don’t have such long-dated lock-in, usually, the restriction is only for ELSS funds, which is a maximum of 3 years.
@Karthik, I am planning to invest in MF particularly, L&T Emerging Direct. Two questions, 1) I noticed two categories, Equity - Diversified Dividend and Equity - Diversified Growth. Which one should I choose? 2) SIP or lump sum investment - Which is more profitable?
Dividend Option: Pays out in frequent intervals from the profit it earns
Growth Option: Profit get reinvested
if you are looking for short term returns go for Dividend.
if you are a looking for a longtime horizon go for Growth Option.
My advise would be to choose Growth Option as it has a compounding benefit.
Q2:
SIP or Lumpsum:
it s a most frequent question everyone posts, for a beginner it advisable to go for SIP as it disciplines your investment and you dont have to watch out for the market ups and downs.
Once you understand the market and gain experience you will get to your own judgement
and you will be able to take a call. For now stick on to SIP.