The initial step is to determine your risk tolerance and investment duration. Once you have that clarity, selecting the right mutual fund becomes much easier. On platforms like Groww, you can choose from various categories of mutual funds, including high-return options, tax-saving funds, and investments in leading companies, among others.

Investors in mutual funds can redeem their investments at any time if they are in open-ended funds. However, this flexibility does not apply to ELSS mutual funds, which have a mandatory lock-in period.

You can choose to visit the Groww website or download the Groww mobile app to begin your investment journey in mutual funds.

The account setup on Groww is entirely free and conducted online. If you have all the required information ready, it can be completed in just 2 minutes.

Groww offers a 0% commission on mutual fund investments, allowing you to select from more than 5,000 direct mutual funds and begin your investment journey at any time.

Certainly! Here’s a similar sentence: For tax purposes, mutual funds are classified into equity-oriented and debt-oriented. If your investment in debt-oriented mutual funds is held for less than 36 months, the gains will be taxed according to your income tax slab. However, if the holding period exceeds 3 years, capital gains are taxed at 20% with the benefit of indexation. Additionally, if a fund has less than 65% equity exposure, it will be treated as a debt fund for tax purposes, and short-term capital gains will apply.

Mutual funds provide returns to their investors primarily through two channels: interest income and capital appreciation. Interest income is generated when the fund invests in fixed-income securities, such as bonds, which pay regular interest to investors. On the other hand, capital appreciation occurs when the value of the securities held in the fund increases, allowing investors to profit when they sell their shares at a higher price than their purchase price. Both interest income and capital gains from mutual funds are subject to taxation.