Part of the same group
Investing, started properly and kept simple.
Begin a SIP against a goal you can name, with a risk profile that matches how you would actually react to a fall.
What investing with G2P Wealth involves
What each one is for, and the condition attached to it. The scheme document is what finally decides.
Monthly SIP
A fixed amount invested on a date you choose each month, which takes the question of when to invest off the table.
A SIP averages the price you pay. It does not protect against a fall and does not guarantee a gain.
Lump sum
A single investment, for money you already hold and will not need soon.
The whole amount is exposed to the market from the first day, which is the trade-off for being invested sooner.
Goal planning
Working back from what the money is for and when you need it, to a monthly figure.
Any figure that results is arithmetic on an assumed rate of return. It is a plan, not a forecast.
Risk profiling
Matching the fund to how you would actually behave in a fall, rather than how you expect you would.
Every scheme carries a SEBI riskometer reading, from Low to Very High. The scheme document states it.
Equity funds
Invested in shares, for money with a long horizon in front of it.
Larger movement in both directions. Generally considered for money you will not need for at least five years.
Debt funds
Invested in bonds and similar instruments, for shorter horizons.
Steadier is not the same as safe. Debt funds carry interest rate and credit risk and can fall in value.
Hybrid funds
A mix of equity and debt held to a pattern the scheme sets out.
The mix is decided by the scheme rather than by you, and the mix is what decides the risk you carry.
Tax-saving (ELSS)
Equity funds that qualify for deduction under Section 80C, available under the old tax regime.
Each instalment is locked for three years from the day it is invested, so a SIP locks every instalment separately.
Worth adding
Equity funds
Higher potential return, higher short-term movement.
Debt funds
Steadier, suited to shorter horizons.
Hybrid funds
A mix, rebalanced for you.
Tax-saving (ELSS)
Equity with a three-year lock-in and tax relief.
What to check before you choose
These decide what you actually keep. Read them before the return figure.
Expense ratio
The annual charge, taken out of the fund rather than billed to you, so it is easy to miss. It is already reflected in the NAV you see.
Direct plan or regular plan
A regular plan pays a distributor — us — a commission out of that expense ratio. A direct plan does not, costs less each year, and comes with no advice. You are entitled to ask which you are being offered and why.
Exit load
A charge for leaving early, commonly around one per cent within the first year on an equity fund. The scheme document states the actual figure and the period.
Lock-in
ELSS locks each instalment for three years. Other open-ended funds do not lock your money, though an exit load may still apply.
The riskometer
SEBI requires every scheme to publish one, on a six-step scale from Low to Very High. Read it against how long you can leave the money alone.
What past returns tell you
How a fund behaved, and nothing more. Past performance does not indicate future returns, and a figure chosen from a flattering period tells you least of all.
Tax on what you take out
Equity and debt are taxed differently, and the rules move with the Budget. Ask what the position is on the day you redeem rather than assuming last year's.
Who receives it if you are not there
Register a nomination, or record that you have chosen not to. It is the difference between a straightforward transfer and a long one.
How G2P Wealth supports you
What we do at each stage. The investment decision, and its outcome, remain yours.
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Understand the goalWhat the money is for, when you need it, and what you would do if it fell twenty per cent along the way.
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Explain the optionsThe realistic choices, what each one carries, and where they differ beyond the return figure on the front of the factsheet.
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Help with KYC and the paperworkPAN, KYC and the bank mandate that lets a SIP run, so the first instalment does not fail.
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Explain what you holdThe scheme name, the plan, the riskometer reading, the expense ratio and the exit load, so you know what you own and what it costs.
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Review it with youDiscuss a review when your goals, time horizon or circumstances change. Check the risks and costs before changing investments.
Mutual fund investments are subject to market risks. Read all scheme related documents carefully. Past performance does not indicate future returns, and the value of an investment can fall as well as rise.
Mutual Fund questions, answered clearly
General guidance. The scheme document and factsheet decide the specifics, and tax rules change.
Getting started
How much do I need to start?
Many schemes accept a SIP of a few hundred rupees a month. The amount that matters is the one you can keep going through a bad year, because stopping in a fall is what does the damage.
SIP or lump sum?
A SIP suits money arriving monthly from income. A lump sum suits money you already hold. Neither is safer in principle; a SIP spreads the price you pay, a lump sum is invested sooner.
What do I need for KYC?
PAN and a KYC that is complete and current. If you have invested before, your KYC may already be registered and simply need checking rather than redoing.
Can I invest for my child?
Yes, in a minor's name with a guardian operating it. The holding passes to them at eighteen, and the account has to be put in order at that point before it can be operated again.
How long should I stay invested?
As long as the goal needs. Equity is generally considered for horizons beyond five years; money needed next year does not belong in it at all.
Risk and returns
Are returns guaranteed?
No. Mutual funds are subject to market risk and the value can fall. Anybody promising a guaranteed return is not describing a mutual fund.
What return should I assume when planning?
Any number used in a plan is an assumption, not a promise. We will show you what a plan looks like at more than one rate, including an unflattering one, because that is the one worth planning against.
What happens if the market falls after I start?
The value falls. For a SIP, the instalments that follow buy at lower prices. The decision that matters is whether the goal has changed, not whether the market has moved.
Can I lose everything?
A diversified fund going to zero would require every holding in it to go to zero, which is not the realistic risk. The realistic risk is a sustained fall, and needing the money in the middle of one.
Is a debt fund safe?
Safer than equity, not safe. Debt funds carry interest rate risk and credit risk, and have fallen in the past when rates moved or a holding was downgraded.
Charges and tax
What am I charged?
The expense ratio, taken out of the fund each year, and an exit load if you leave within the stated period. Both are in the scheme document, and we will point at them rather than summarise them.
Do you earn anything from this?
On a regular plan, yes: a commission paid out of the expense ratio by the fund house. A direct plan pays no commission and costs less. You should know which you are being offered.
How are gains taxed?
Equity and debt are treated differently, holding period decides the rate, and both have changed in recent Budgets. Ask for the position as it stands on the day you redeem; anything stated here could be out of date by then.
Does ELSS save tax every year?
A deduction under Section 80C is available under the old tax regime, within the overall limit shared with other eligible items. Under the new regime it is not. Which regime suits you is a separate question from which fund does.
Is there TDS?
Rules differ for residents and non-residents and have changed over time. Ask before you redeem, particularly if you are not resident in India.
Changing, pausing and redeeming
Can I pause or stop a SIP?
Yes. A SIP is an instruction, not a commitment, and can be paused or stopped. What you have already invested stays invested until you redeem it.
How quickly can I get my money?
For most open-ended funds, redemption proceeds are credited within a few working days of the request. ELSS cannot be redeemed until each instalment has completed three years.
Should I switch when a fund does badly?
Not on a single bad year by itself. What matters is whether the fund is still doing the job it was chosen for. Switching after a fall and before a recovery is how a paper loss becomes a real one.
Can I change the amount later?
Yes, and most people should as income changes. Increasing a SIP with income is the single easiest improvement available to most plans.
What happens to the investment if I die?
It passes to the registered nominee, or through succession if there is none, which takes considerably longer. Registering a nomination is the one piece of paperwork worth not postponing.