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Mutual Funds
A simple, regulated way to build long-term wealth, one disciplined step at a time. We help you choose, start and stay on course.
What a mutual fund is
A mutual fund pools money from many investors and invests it in shares, bonds or both, as set out in the scheme's documents.
A professional fund manager runs the portfolio, and every investor owns units in proportion to what they put in. The value of one unit is called the NAV (net asset value), and it moves up and down with the market every working day.
Mutual funds are regulated by the Securities and Exchange Board of India (SEBI). Finpotters is the trade name of AMFI-registered Mutual Fund Distributors, so we help you select, invest in and review schemes across fund houses.
As mutual fund distributors, we may give incidental advice: suggestions limited to mutual fund schemes, based on your risk profile and your goal.
The main categories
Each category does a different job. Most families use two or three of them together.
SIP, STP and SWP, explained
These are not products. They are ways of moving money into, between or out of mutual funds on a schedule, so discipline does not depend on memory or mood.
How Finpotters helps
From the first conversation to the tenth review, in four steps.
- Understand youYour goals, time horizon, comfort with risk, income and existing investments.
- Shortlist schemesA small, clear set of schemes across fund houses that fit your goal and risk profile, with the reasons written down.
- Set it upKYC, nominations, bank mandates and your SIP, STP or SWP, done with you, step by step.
- Review, not reactPeriodic reviews to check the mix still matches your goals, and calm conversations when markets are noisy.
Regular Plan or Direct Plan: an honest note
Every mutual fund scheme has two versions. Through us, you invest in the Regular Plan. The fund house pays us a commission out of the scheme's expenses, so a Regular Plan has a higher expense ratio than the Direct Plan of the same scheme. Direct Plans pay no distributor commission; you invest in them yourself, directly with the fund house or through an online platform, or with the help of a SEBI-registered Investment Adviser.
What the difference pays for is the service: choosing and combining schemes, paperwork, nominations, reviews, and someone to call when markets fall. You can ask us, at any time, how much commission we receive on any scheme we suggest. See our disclosures.
Tax basics, Tax Year 2026-27
From 1 April 2026 the Income-tax Act, 2025 replaces the 1961 Act. The rates for mutual funds are largely unchanged; section numbers and the name of the year ("Tax Year") have changed. For resident individuals:
| Type of fund | Held for | How gains are taxed |
|---|---|---|
| Equity-oriented (at least 65% in Indian listed shares) | Up to 12 months | 20% (short-term, s.196; old s.111A) |
| Equity-oriented | More than 12 months | 12.5% on gains above ₹1.25 lakh in the year (long-term, s.198; old s.112A). No indexation. |
| Debt funds (more than 65% in debt and money-market instruments) bought on or after 1 April 2023 | Any period | Added to your income and taxed at your slab rate (s.76; old s.50AA) |
| Other funds (for example gold funds, international fund-of-funds) | More than 12 months if listed, 24 months if unlisted | 12.5% without indexation (s.197; old s.112). Shorter periods: slab rate. |
| IDCW (dividend) payouts | Any period | Taxed at your slab rate. Tax is deducted at 10% if one fund house pays you more than ₹10,000 in the tax year. |
Surcharge on gains taxed at the special rates above (20% and 12.5%) is capped at 15%, and 4% health and education cess applies on top. With a SIP, each instalment has its own holding period, so gains on recent instalments may still be short-term. Tax for NRIs works differently; see our NRI guide.
Last reviewed: 29 September 2026, for Tax Year 2026-27 under the Income-tax Act, 2025. This is general information, not tax advice. Please confirm your own case with a chartered accountant.
Be empowered
Simple checks before you invest, whether through us or anyone else.
Before you invest
- Understand the difference between a Mutual Fund Distributor (MFD), an adviser, an agent and an employee.
- Check the name of each financial product before you buy it.
- Ask why this fund, what the alternative funds are, and about returns, charges and any hidden costs.
- Read all documents, and fill in the forms yourself.
- Revisit all disclosures, and know your rights.
Raise the alarm if you notice
- Improper or unsuitable sale of mutual funds
- Not enough transparency when a product is suggested
- Non-disclosure of the grievance redressal mechanism
- Delay or refusal of after-sales service by us
Common questions
What people most often ask us before their first SIP.
How much do I need to start?
Can I lose money in a mutual fund?
Can I stop or pause a SIP?
Is my money safe if the fund house has a problem?
Can NRIs invest through Finpotters?
Mutual fund risk factors
- The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market, including fluctuations in interest rates.
- The past performance of the mutual funds is not necessarily indicative of future performance of the schemes.
- The Mutual Fund is not guaranteeing or assuring any dividend (IDCW) under any of the schemes, and the same is subject to the availability and adequacy of distributable surplus.
- Investors are requested to review the prospectus carefully and obtain expert professional advice with regard to specific legal, tax and financial implications of the investment or participation in the scheme.
- You may also consider alternate products or funds not offered or suggested by us before making the investment decision.
Talk to us about mutual funds
Tell us your goal. We will walk you through a clear shortlist and the reasons behind it.