What it is

A mutual fund pools money from many investors and invests it according to a stated objective. You hold units rather than the underlying shares or bonds, and the value of a unit — the NAV — is published every business day.

It is the most accessible of the three structures we distribute. There is no meaningful entry barrier, and in an open-ended scheme you can add or withdraw money on any business day.

Who regulates it

Mutual funds are regulated by SEBI under the SEBI (Mutual Funds) Regulations, 1996. Every scheme must file an offer document with SEBI, follow prescribed limits on where and how much it can invest, and disclose its portfolio periodically.

AMFI is the industry body. It issues the ARN that a distributor must hold, publishes daily NAV data, and enforces a code of conduct on distributors. Nidhish Investments distributes mutual funds under ARN-364347.

How it works

You invest through a SIP, a one-time lumpsum, or both.
The AMC pools your money with other investors and a fund manager invests it as described in the Scheme Information Document.
You are allotted units at the applicable NAV. Your holding is tracked against your PAN and folio.
In an open-ended scheme you can redeem on any business day. Proceeds are typically credited within a few working days.
ELSS schemes carry a statutory three-year lock-in. Some schemes apply an exit load if you redeem early.

What it invests in

The category is broad, and SEBI's scheme categorisation rules define what each type may hold:

Equity — large cap, mid cap, small cap, flexi cap, sectoral and thematic schemes.
Debt — liquid, ultra-short, short duration, corporate bond, banking and PSU, and gilt schemes.
Hybrid — aggressive hybrid, balanced advantage, conservative hybrid and multi-asset schemes.
Passive — index funds and ETFs tracking equity or debt indices.
Commodity and international — gold and silver ETFs, and schemes investing overseas within RBI limits.

Past performance

On past performance

We deliberately do not publish return figures on this website. Performance changes daily, and how a distributor may present it is governed by regulation. Use the official sources listed alongside, and always read the offer document before investing.

Who it suits

Anyone starting to build a corpus, at almost any income level.
Investors who want daily liquidity and the ability to pause or stop contributions.
Families saving towards dated goals such as education, a home or retirement.
Investors who prefer a tightly regulated structure with capped risk-taking by the manager.

Risks to understand

Returns are market-linked and not assured. Equity schemes can fall sharply over short periods.
Debt schemes carry credit risk and interest-rate risk, and are not risk-free.
Exit loads and taxation reduce realised returns. Taxation depends on scheme type and holding period, and changes from time to time.
A scheme's past record tells you nothing reliable about its future.

Taxation of mutual funds in India varies by scheme type and holding period and is revised periodically. Please consult your own tax professional rather than relying on general information.