The primary types of mutual funds are:

• Equity Funds: Invest in stocks and aim for capital appreciation.
• Debt Funds:Invest in bonds and other fixed-income securities for stable returns.
• Hybrid Funds:Combine equity and debt investments to balance risk and return.
• Index Funds:Track a specific index like the Nifty 50 or Sensex.
• Sector Funds:Focus on specific sectors like technology or healthcare or manufacturing.
• Tax-Saving Funds (ELSS):Offer tax benefits under Section 80C of the Income Tax Act.

Equity Linked Savings Scheme (ELSS) is a type of mutual fund that invests primarily in equities and equity-related instruments. It offers tax benefits under Section 80C of the Income Tax Act and has a lock-in period of three years.

You can start investing in mutual funds by:

• Determining your investment goals and risk tolerance.
• Choosing the type of mutual fund that suits your needs.
• Completing the Know Your Customer (KYC) process.
• Selecting a mutual fund distributor or an online investment platform.
• Investing either through a lump sum or a Systematic Investment Plan (SIP) or other similar plans.

A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly (daily, weekly, monthly, quarterly, etc.) in a mutual fund scheme. It helps in disciplined investing, averaging out the cost of purchase, and mitigating the impact of market volatility.

The documents typically required for investing in mutual funds include: ( Subject to change ) KYC is mandatory for making any investment.

1. Proof of Identity (PAN Card, Aadhaar Card, Passport, etc.)
2. Proof of Address (Aadhaar Card, Voter ID, Utility Bill, etc.)
3. Passport-sized photographs
4. Bank account details (Cancelled cheque or bank statement)
5. Documents as required

Risks generally associated with mutual funds include market risk, interest rate risk, credit risk, inflation risk and other risks. The level of risk varies depending on the type of mutual fund. Equity funds are generally riskier compared to debt funds.

Common fees and charges include:

• Expense Ratio: The annual fee charged by the fund for managing your investments.
• Exit Load: A fee charged if you redeem your investment before a specified period (Varies from scheme to scheme).
• Transaction Fees: Charges for buying or selling mutual fund units.

The expense ratio is the annual fee expressed as a percentage of the fund's average assets under management (AUM). It covers management fees, administrative costs, and other operating expenses.

Taxation on mutual funds depends on the type of fund, the holding period, and the investor's taxable slab rate: (Subject to change)

• Short-term capital gains (STCG) tax
• Long-term capital gains (LTCG) tax

Yes, you can switch between mutual fund schemes, typically within the same fund house. However, switching may attract exit loads and tax implications, depending on the holding period and the type of funds. For AMC to AMC switch, you need to redeem your investment and purchase fresh units in the new AMC of your choice.

You can track the performance of your mutual fund investments through:

1. Fund fact sheets and performance reports provided by the fund house.
2. Online investment platforms and apps.

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully before investing.