Yes. Mutual funds are regulated by SEBI. While returns aren’t guaranteed, your investments are professionally managed.

Most mutual funds (except ELSS) are easy to redeem. Funds are typically credited to your bank within 1–3 business days.

Yes, mutual funds are subject to taxation in two main ways:
Capital Gains Tax: If you sell your mutual fund units at a profit, the gain is taxable.
Fund-Level Capital Gains Distribution: Even if you don’t sell your mutual fund, you may owe taxes if the fund itself sells securities at a profit and distributes those gains to you.

For further clarification, please consult your tax advisor or financial consultant.

**Equity Mutual Funds:**

* Holding period less than 1 year: Gains are taxed as Short-Term Capital Gains (STCG) at 20% plus cess and surcharge.

* Holding period of 1 year or more:Gains exceeding ₹1 lakh in a financial year are taxed as Long-Term Capital Gains (LTCG) at 12.5% (without indexation).

**Debt Mutual Funds:**
* All gains are taxed as per your income tax slab, regardless of the holding period.

For further clarification, please consult your tax advisor or financial consultant.

Define Goals:
Set clear financial goals such as retirement, home purchase, education, etc.

Assess Risk Tolerance:
Identify your risk profile — conservative, moderate, or aggressive.

Asset Allocation:
Distribute your investments across different asset classes (equity, debt, etc.) based on your risk tolerance and financial goals.

Fund Selection:
When choosing mutual funds, evaluate the following:
• Fund performance over the past 3–5 years
• Expense ratio
• Fund manager’s track record
• Risk-adjusted returns (e.g., Sharpe ratio)