Mutual Funds

1. Who is a Mutual Fund Distributor?

A mutual fund distributor is an individual or entity facilitating the buying and selling of mutual funds. They also aid investors with various transactions and guide them periodically on the performance of their investments.

Mutual fund distributors make Investors aware of various schemes offered by Mutual Fund Houses and understand the effectiveness of Mutual Fund schemes compared to other investment options such as Bank Fixed Deposits, ULIPs, Equity Shares, and Bonds, etc.

2. What documents do individual investors require to trade in mutual funds?

An Individual investor is an individual who purchases securities for his or her own personal account rather than for an organization. This investor typically trades in much smaller amounts than institutional investors such as mutual funds and pensions. Individual investors require the following documents to trade in mutual funds:

  1. Application form (Investors might need to fill in more than 1 application form to get a mutual fund- one to open a mutual fund account and another one if you decide to opt for a SIP plan within the fund.

  2. KYC form

  3. Passport size photograph

  4. Passport size photograph

  5. Proof of identity (Aadhar card)

  6. Proof of address (Aadhar card)

In addition to this, the investor’s PAN must be verified under the KYC norms of the Indian Govt.

3. What are the different kind of investor and there meaning?

There are two types of mutual fund investors:

  1. Individual Investors - An Individual investor is someone who purchases securities for his or her account rather than for an organization. This investor typically trades in much smaller amounts than institutional investors such as mutual funds and pensions.

  2. Non-individual investors- Non-individual investors invest in mutual funds via organizations such as HUF, PARTNERSHIP FIRM, LLP, TRUST, and PVT.

4. What documents do non-Individual Investors require to trade funds?

A non-individual investor is an investor who invests the amount in a mutual fund via organizations like (HUF, PARTNERSHIP FIRM, LLP, TRUST, PVT, and ETC). Here are the documents required:

  1. Memorandum and Article of Association

  2. PAN verified under KYC norms

  3. Passport size picture

  4. Identity proof

  5. Address proofs

  6. Resolution of the Board of Directors to open an account for investment in Mutual Funds Schemes

  7. List and signature/s of authorized person/s

  8. Deed of declaration of HUF

  9. Bank Statement

  10. Trust deeds (for Trusts)

  11. Power of Attorney (for Trust)

  12. Certificate of registration with SEBI (for FIIs)

  13. Self-certification on letterhead (for banks, institutional investors, regulatory bodies, army organizations, and government bodies)

5. What is a Folio? How is it created?

When you purchase a mutual fund, you are assigned a "folio number” by the mutual fund company (also called AMC or Asset Management Company). This is like an account number with that AMC. You can use the same folio number for any subsequent funds you buy but it is not compulsory to use the same folio number. 

You don't need to worry about getting a folio number, as it is automatically assigned to you when you purchase a mutual fund.

Example: Folio number looks something like 2189379.

A folio number is automatically assigned to you when you purchase a mutual fund and the same account is used for all the transactions you make with the same AMC. This number appears in account statements along with the investor’s other details. The folio number helps the AMC maintain a credible record for every investor.


7. How are transactions done in Mutual Fund?

There are three kinds of transaction services which an investor requires, they are as follow: - (A) Initial Purchase: When an investor opens a folio in an AMC, then he or she does an initial purchase in a fund of their choice, these define as the initial purchase. (B) Switch: When an investor is switching from one fund to another but in the same AMC is known as Switch. (C) Redemption: When an investor wants to redeem his or her investment amount, this transaction is required.

8. How can I see my fund performance?

You can ask your distributor for a detailed report about the performance of your funds at any time. You can also check online by typing your fund’s name on Google and check out the current net value asset of your investment.


1. What is insurance?

Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients' risks to make payments more affordable for the insured.

2. Why do I need Insurance?

Unfortunately, life’s journey is not always as smooth as we want it to be. Unexpected events may trip us up in life or stop us from living every day to the fullest. For those events that could be expensive, insurance can cover the costs, so that you don’t have to. Insurance is key to you being able to focus on the important things in life because it will ensure financial security for you and your family should anything unfortunate happen. When large financial burdens like hospital bills or medical charges arise, insurance helps meet the costs, allowing you to pursue your dreams.

3. What does General Insurance do for me?

Accidents... illness... fire... financial securities are the things you'd like to worry about any time. General Insurance provides you the much-needed protection against such unforeseen events. Unlike Life Insurance, General Insurance is not meant to offer returns but is a protection against contingencies. Under certain Acts of Parliament, some types of insurance like Motor Insurance and Public Liability Insurance have been made compulsory.

4. What is the best time to start thinking about insurance?

The sooner, the better! The moment you receive your first paycheck is the best time to start building your health and lifetime protection. Getting coverage early will give you peace of mind for the lowest premiums possible. Choose the cover and premium that best suits your needs and budget, and you will be able to adjust the level of coverage that suits your needs as they change over time.

5. What is a Premium?

A policy's premium is its price, typically expressed as a monthly cost. The premium is determined by the insurer based on your or your business's risk profile, which may include creditworthiness.

6. What is deductible?

The deductible is a specific amount the policyholder must pay out-of-pocket before the insurer pays a claim. Deductibles serve as deterrents to large volumes of small and insignificant claims.

Deductibles can apply per-policy or per-claim depending on the insurer and the type of policy. Policies with very high deductibles are typically less expensive because the high out-of-pocket expense generally results in fewer small claims.

7. Where can I get the Insurance ?

IRDA the chief regulatory body allows various Insurance companies to operate in the country and offer general insurance products. Currently, there are 21 General Insurance companies offering GI products in India

8. What is the easiest way to get insurance?

IRDA allows insurance to be sold primarily through the following:

  1. Agents representing an insurance company

  1. Insurance brokers are allowed to sell products of more than one insurance company

  2. Company websites

  3. Buying on phone ( depends upon individual companies)

  4. Banks, retail houses or any other commercial ventures which are the channel partner of these insurance companies


1. What is Income Tax?

Income tax is the tax levied by the Government of India on the incomes of individuals and businesses. The provisions governing Income-tax are covered by the Income-tax Act of 1961

2. What kind of tax structure does India have?

The Central Government of India levies taxes such as customs duty, income tax, service tax, and central excise duty. The taxation system in India empowers the state governments to levy income tax on agricultural income, professional tax, value-added tax (VAT), state excise duty, land revenue, and stamp duty.

3. What is GST?

The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption

4. Who is supposed to pay GST?

The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services

5. What is TDS?

TDS stands for tax deducted at source. As per the Income Tax Act, any company or person making a payment is required to deduct tax at source if the payment exceeds certain threshold limits. TDS has to be deducted at the rates prescribed by the tax department. ... Interest payments by banks. Commission payments

6. What is corporate Tax?

Corporate tax is a tax imposed on the net income of the company. Both private and public companies, that are registered under India’s Companies Act 1956, are required to pay corporate tax on their net profits, at a rate prescribed by the income tax department.

7. What is sales tax?

A sales tax is an indirect tax imposed by the government on the sale of goods and services. A conventional sales tax is levied at the point of sale, collected by the retailer, and passed on to the government.

8. What is the securities transaction tax (STT)?

STT is a kind of financial transaction tax that is similar to tax collected at source (TCS). STT is a direct tax levied on every purchase and sale of securities that are listed on the recognized stock exchanges in India.

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