FAQ

What is Mutual Fund?

A mutual fund is an investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets.

Why should I invest in Mutual Funds?

There are many reasons to invest in mutual fund

  • It is managed by professionals and the whole process is transparent and very cost effective
  • Enough diversification to reduce volatility
  • One can start with as little as 500/- per month
  • Money doesn't get locked in
  • ELSS is a class of mutual fund which gives tax benefits of RS.1,50,000/- under IT section 80C. In this case, lock-in period is only 3 years which is far better than 15 years in PPF.
  • Investment as per the choice of an investor like short, medium or long term.

Do I get a tax benefit by investing in Mutual Funds?

As of now, Equity mutual fund investment after one year is tax-free. And one can get indexation benefit on debt schemes.

Can I invest in Mutual Funds without a Demat account?

Yes. In India, it is not compulsory to have a Demat account for mutual fund investment. It's better to have a folio account because it's easy to manage and you don't incurr any transaction charges. Moreover redemption from folio account is very easy process. 

Is it safe to invest in Mutual Funds for beginners?

Of course, mutual fund investment is safe for beginners but it is always recommended to invest as per individual risk profiling. There are more than 5000 schemes in mutual fund industry which are influenced by many factors, so it is advisable to take professional advice to get an optimum return.

When should I not invest in Mutual Funds?

We do not recommend to invest in Mutual Funds in the below scenarios : 

  • If you are expecting returns of 25–40% each year for next 5–10 years.
  • If you want to make a quick profit & expect double digit returns in few weeks or months. 
  • If you are not patient & can’t continue your investments every month for minimum 3 to 5 years. 
  • If you are a short term trader & expect the same returns. 

These days, why everyone is talking about Mutual Fund investments in India?

These days mutual fund industry is emerging as a superior asset class with tax benefits and good returns. From past few months, mutual fund industry is witnessing historical money inflow as well new investors. Since investors are getting good returns, mutual fund investment is growing exponentially through word of mouth. Even after implementation of LTCG, Mutual Fund is offering better returns than other asset classes. 

How can I invest in mutual funds for my child who’s still minor?

Yes, Minor investment is possible in a mutual fund. In case of a minor, KYC of a guardian is necessary before investing.

Can I use my wife’s bank account to do Mutual Fund investment in my name?

As per statutory regulation, you may only invest from your own bank account. You are not allowed to invest in any third party’s bank account even if the account belongs to your wife, family or friend.

What is One Time Mandate?

OTM, or 'One Time Mandate' is a one-time registration process that will allow you to invest in a mutual fund by a simple, convenient and paperless manner. Simply put, it is an authorization to your bank account to debit money up to a certain limit in a day. At MFUNDZ your mandate is registering with BSE LTD. so, the investor should not make repeated mandate with different mutual funds in case of more than one SIP. As BSE LTD. is the most trusted company so investor need not worry about giving a mandate to any unknown company. 

How is Mfundz different from other Mutual Fund advisory companies?

Mfundz helps you select best mutual fund by historically proven and probably world's first data-driven process which suggests best mutual fund according to investor's risk profiling as well as equity market risk-reward positioning. Using our investment tracking tools, we monitor our investor's portfolio and suggest a change if any needed on regular basis.

  • We have an easy process for Investors to sign up and complete profile by providing relevant information needed for mutual fund investment
  • Since we want to avoid any future difficulties for Investors, we take all necessary documents one time. In most of the cases, we accept digitally scanned documents and it’s very easy onboarding process
  • Upload required documents by scan or taking a photo from your mobile. Easy to do
  • Once you submit complete information and we verify each application manually to ensure it’s as per statutory requirements of SEBI. On submission, you will receive an account opening letter from BSE(world's most trusted and oldest stock exchange)
  • Take a print, sign it and send back by scan, or taking a photo. Or you can upload this from your Investor Dashboard
  • Once we receive your account opening letter, your account will be activated within 10 minutes and you’ll be ready to invest from anywhere and anytime for a lifetime

How Mfundz invests my money? Do I get any proof?

We are associated with BSE; all your transactions will be processed by Bombay Stock Exchange mutual fund platform which follows the highest level of security practices. We do not hold any money at our end.

Your investment goes directly to reputed mutual fund house via BSE platform. Every Mutual fund house will create unique folio number for the investor after receiving money, it normally takes a working day to process investment details. An investor can track investments in Mfundz.com dashboard. Mutual fund house also informs investor by email about each investment.

If an investment is done after 2:45 PM on a regular day, it may take one more day to process details because 3:00 PM is cut off time for all AMC.

What is the safety of my investments if Mfundz shuts down?

Your investments are held directly with Mutual Fund companies and hence there is no risk of losing money in case Mfundz shuts down. Mfundz facilitates your investments from your bank account to the mutual fund’s bank through BSE platform.

We offer you redeem option from your investor dashboard. And you can also redeem money directly from the Mutual fund house.

By the way, we are here to help you grow your money and we don’t see ourselves shutting down.

If I am not KYC verified, Does Mfundz help me to register my CKYC?

In 2017 government of India has made compulsory registration of CKYC for Bank, Mutual fund and Insurance industry. If you’re yet to be done, obviously, we will help you.

In such case, we will send you prefilled CKYC form to your email. You need to take a print, sign at mentioned places with supporting documents and send it back to our office address. Once we receive, we will send it to authorized CKYC department. On an average, it’s 10 working day process.

How Mfundz selects mutual fund scheme for me?

At Mfundz we don’t go with generalized investment approach. First, we understand investor’s mindset by asking questions, suggest tailored investment plan for each investor.

Our extensive research will suggest asset allocation as per equity market risk-reward scenario. It is our proprietary process of analysis of historical valuations as well as economic conditions and interest rate.

Finally, Mfundz' data-driven process selects fund by analyzing AUM, Fund Manager's past ability of outperformance, different ratios, consistency of performance and many more data.

How will I get my money back when I need?

Return on investment grows with the time you stay invested. So, it’s always recommended to stay invested as much as you can.

Still, if you want to redeem for some reason, you can redeem investment from Mfundz dashboard yourself or by calling our helpdesk. We first try to understand your need and suggest you right option.

Redeemed money will directly credit to your bank account associated with your Investor Profile. It normally takes 3 working days.

What is Exit Load?

Exit load is a charge levied by the mutual fund house if investor redeems within a certain time period. These charges vary from one scheme to other. We will guide you when you start investment so that you can take an informed decision.

How secure is Mfundz platform?

Our website operates under SSL so all your data is securely sent to the server under 128-bit encryption mode. We use highly secure server environment to avoid any security lapses.

All your transactions happen through BSE’s platform so we don’t save any of your debit card or credit card or bank account details at our end. Moreover, for every transaction, you will get an intimation through SMS and email from the fund house. So, you’ll always be informed about your investment activities.

What alternative options do you offer to me for Mutual Fund investments?

As of now we offer you both Investment options DIY – Do It Yourself or VIP (Value Investment Planning) Option

Under DIY, you can use following products

Wealth Creation– If your goal is to grow your wealth, you should opt for this tool.

Tax Saving – If you want to invest in ELSS funds, you should choose this tool.

Smart Saving – To earn out of your idle cash, you should choose this option.

If you know which fund you want to invest into, you can simply go to your dashboard and select invest option and proceed forward with investing. 

What is Value Investment Planning (VIP)?

Value Investment Planning is our subscription-based professional portfolio management service. Under this service, our financial expert team manages your investments. 

Is value investment only for lump-sum investment?

Value investment is must for Lump-sum investment. If SIP is of more than 3 years, value investing can generate more returns than traditional SIP. For SIP of less than 3 years, value investing can provide better stability against the downside of the market.

Does Mfundz try to find top and bottom of the market?

Certainly not, we only follow valuations. So, it’s not appropriate to consider that we apply switch when the market turns and vice versa. Investment does not generate positive risk-free returns at higher valuations and thus we suggest a switch from equity to debt fund.

How do you decide valuations at Mfundz?

From historical data research; we have created matrix of border (Broader) index PE, PB, Dividend Yield and Interest Rate. So, we consider all important parameters to generate valuations of the overall equity market.

How much benefits can I expect if I opt for value investing?

Due to regulatory limitations, we can not promise about definite returns in the mutual fund industry. But our assurance is; if we could not deliver 12% CAGR over a 3-year period, we promise to return our advisory fees.

I am new to investing in Mutual Funds and have some questions. Who should I speak with?

You can –

Call us - +91 70 4343 5353 (Monday to Friday except for holidays – 10 AM to 6 PM)

Email us - invest@Mfundz.com (During weekdays we revert within 24 hrs.)

Chat with us - (Monday to Friday except for holidays – 10 AM to 5 PM)

Chatbot (Facebook Messenger) - https://goo.gl/fvMse7