• Mutual funds are managed by Asset Management Companies (AMCs) in India. They provide a variety of funds to meet the demands of various investors and are governed by the Securities and Exchange Board of India (SEBI).
• Net asset value, or NAV, of a mutual fund is the market value of all securities held by the fund, divided by the number of units held, less any liabilities. It represents the overall performance of the fund and is calculated daily.
• SIP (Systematic Investment Plan): In India, SIP is a well-liked method of investing in mutual funds. It enables investors to make regular, set contributions to a mutual fund (monthly or quarterly). SIPs can be a good strategy to build wealth over time and assist with rupee cost averaging.
• SIP (Systematic Investment Plan): In India, SIP is a well-liked method of investing in mutual funds. It enables investors to make regular, set contributions to a mutual fund (monthly or quarterly). SIPs can be a good strategy to build wealth over time and assist with rupee cost averaging.

Before purchasing mutual funds, investors must go through the KYC (Know Your Customer) process, which entails submitting the necessary identification along with address evidence to the AMC or its authorised intermediaries.

• Expense Ratio: The operational costs, management fees, as well as additional costs associated with mutual funds are covered by the expense ratio. It has an immediate influence on investor returns and is represented as a percentage of the average assets under management (AUM) of the fund.
• Risk and Returns: The risk and possible returns for different mutual funds differ. For instance, compared to debt funds, which are often less risky but give lower returns, equity funds are riskier but have the potential for larger returns.
• Taxation: Depending on the type of investment and the holding period, mutual funds in India are taxed. While debt funds may have distinct tax effects, equity funds that have been held for more than a year are eligible for long-term capital gains tax benefits.
• Redemption: At the current NAV, investors may redeem their mutual fund units. The funds are credited to the investor’s designated bank account after the redemption procedure, which usually takes a few business days.
• Regulatory Framework: SEBI, which establishes rules and regulations to ensure transparency, investor protection, and ethical business practises in the mutual fund sector, oversees mutual funds in India.