Many investors prefer to buy mutual funds because they are managed by professional fund managers who optimise your portfolio for maximum returns and minimum risk. Further, mutual funds allow investors to access expert management at nominal costs and can be easily redeemed when required.

No, SIP and Mutual Funds are not the same. Rather, SIP or Systematic Investment Plan is a route through which you can invest in mutual funds in a staggered manner, and at frequent intervals. It is an option to lumpsum investment, which requires you to invest your entire corpus in one go.

Most mutual funds offer you the option of SIP and lumpsum investments. You can start with a minimum investment possible of Rs. 100, via SIP and Rs. 1,000 in the lump sum mode.

Returns can be earned through dividends and capital gains. You may receive dividends when the AMC makes a profit and has surplus cash. The amount of dividends you receive will be proportional to the units you hold. Capital gain is the profit earned when you sell your units at a price greater than the purchase price.

Average returns depend on the number of years of investment and the type of fund you invest in.

Mutual funds are an investment vehicle and, as such, they do not pay interest like bank deposits, which are a type of security. Rather, mutual funds offer investors returns in the form of dividends and capital gains, in addition to providing attractive tax benefits.

If you have invested in an open-ended mutual fund, then you can withdraw your corpus anytime. However, close-ended funds and schemes like ELSS do not allow such withdrawals.

You can buy and sell mutual funds through the fund’s website, an online trading platform or a broker for the fund. If you are investing in ETFs or index funds, you can also buy and sell your units on the index wherein the fund is listed.

Investing in mutual funds on Edelweiss Mutual Fund is a convenient and paperless process which will take only a few minutes, as long as you have the relevant KYC documents in place.