ABOUT MUTUAL FUNDS :- Mutual funds are large amounts of pooled money managed by fund managers who use their investment management skills to invest it in various financial instruments. And as an investor you own units, which basically represent the portion of the fund that you hold, based on the amount invested by you.

Advantages of Mutual Funds:-

•   Diversification
•   Automatic reinvestment
•   Flexible investment tenure
•   Risk reduction
•   Tax savings
•   Manages inflation
•   Safe & transparent
•   Minimal paperwork
•   Liquidity
•   Affordability

COLLECTION OF MUTUAL FUNDS:-

•   Large Cap Mutual Funds
•   Mid Cap Mf
•   Small Cap Mf
•   Hybrid
•   Multicap
•   Sector Focused
•   Tax Savingt

TAX BENEFITS OF MUTUAL FUNDS:- Tax-saving mutual funds (ELSS): Equity Linked Savings Schemes (ELSS) are a type of mutual fund that provides tax benefits under Section 80C of the Income Tax Act. Investors can claim deductions up to ₹1.5 lakh per financial year. ELSS funds have a lock-in period of three years.

Nature Of Income/Profit	Equity Funds Mutual Funds	Non - Equity Funds Mutual Funds
Time period for holding to classify as LTCG	1 Year	3 years
Short Term Capital Gain (STCG)	15% + 4% cess = 15.60%	As per the tax rate of the investor. For investors in the highest tax slab = 30% + 4% cess = 31.20%
Long Term Capital Gain (LTCG)	If in total the LTCG exceeds Rs 1 Lakh in FY, tax = 10% + 4% cess = 10.40%	20%
Dividend Distribution Tax(DDT)	10% + 12% surcharge + 4% cess = 11.648%	25%+ 12% surcharge +4% cess = 29.120%

Systematic Investment Plan (SIP) :- Systematic Investment Plan (SIP) is a popular investment strategy that allows investors to contribute a fixed amount of money at regular intervals (usually monthly) into mutual funds or other investment vehicles. SIP is a disciplined approach to investing and offers several benefits:

•   Discipline and Regular Investing
•   Rupee Cost Averaging
•   Compounding
•   Diversification
•   Long-Term Focus
•   Convenience
•   Automatic payment
•   Tax benefit