SIP

Mutual Funds — Investment Vehicles: Complete 101 Guide Last updated: March 2026 What are Mutual Funds? Mutual funds pool money from multiple investors to invest in securities (stocks, bonds, money market instruments) managed by professional fund managers. Key Entities Entity Role AMC Asset Management Company Trustee Investor protection Custodian Safekeeping of assets RTA Transaction processing Types of Mutual Funds By Asset Class Type Risk Example Equity High Smallcap, Largecap Debt Low Corporate bonds, Gilt Hybrid Medium Balanced funds Money Market Low Liquid funds By Structure Open-ended: Buy/sell anytime Closed-ended: Fixed tenure Interval: Limited trading periods How to Invest SIP vs Lump Sum Mode Benefit SIP Rupee cost averaging Lump Sum Market timing SEBI Regulations Total Expense Ratio (TER) caps Risk profiling requirement Standard terminology Investor grievance mechanism Consumer Rights Transparent fee structure Portfolio disclosure Redemption within 3 business days SEBI grievance portal access