Mutual Funds
Diversified, professionally managed, effortlessly compounding
Mutual Funds
Mutual Funds let you invest into a professionally managed and diversified portfolio of equities, bonds, gold, REITs and international equities. Your money is pooled with other investors and managed by expert fund managers.
For most investors, mutual funds are the most efficient way to own a diversified portfolio without needing to research individual securities. A single SIP can give you exposure to hundreds of companies across sectors and geographies.
We help you select schemes that fit your goal, horizon and risk profile — then keep the plan on track through market cycles with periodic reviews and rebalancing. The discipline of a Systematic Investment Plan does the heavy lifting: rupee-cost averaging smooths out volatility, and compounding rewards patience.
Mutual fund products are distributed by ILNB Finserv (ARN-133121), part of ILNB Group. Schemes are managed by SEBI-registered Asset Management Companies; ILNB Finserv acts as a distributor and does not manage your money itself.
How to start investing in mutual funds
Three steps, and we do the administrative part of all three.
Tell us the goal
A twenty-minute conversation covers what the money is for, when you need it and how much volatility you can actually live with. Everything else follows from that.
Complete one-time KYC
PAN, Aadhaar and a bank account. KYC is done once and works across every fund house — we handle the paperwork and the follow-ups, including video verification for investors abroad.
Start your SIP or lumpsum
We set up the mandate so instalments run automatically each month, or deploy your lumpsum in one go. Units are allotted at the applicable NAV and reflect within a couple of business days.
Types of mutual fund orders you can place
Four mechanisms. Most portfolios end up using two or three of them together.
One-time Lumpsum
A lumpsum invests a single amount into a fund in one go. It suits money that is already sitting with you — a bonus, a maturity payout, proceeds from a sale, or savings that have been idling in a bank account.
Deploy a surplusSIP
A Systematic Investment Plan invests a fixed amount automatically at an interval you choose. It removes the pressure of timing the market, and a step-up can raise your instalment every year as your income grows.
Invest on a scheduleSTP
A Systematic Transfer Plan moves a fixed amount from one fund into another at regular intervals. It is typically used to park a lumpsum in a lower-risk fund and feed it into equity over several months rather than all at once.
Move in graduallySWP
A Systematic Withdrawal Plan redeems a fixed amount at a set interval, turning an accumulated corpus into a predictable monthly inflow. It is the mirror image of a SIP and is widely used in retirement.
Draw a regular incomeTypes of SIP you can schedule
Your instalment does not have to be monthly. Match the rhythm to how your income actually arrives — a salaried professional and a business owner rarely need the same schedule.
than the fact that it repeats. A step-up of even 10% a year can add substantially to your final corpus — run the numbers in the calculator below.
How to decide which mutual fund to invest in
Choosing a fund is less about chasing last year's top performer and more about matching a fund to your goal, timeline and risk comfort.
Start with the goal
Decide what the money is for and when you will need it. A goal five or more years away can comfortably carry equity. Money you need within a year or two belongs in debt or liquid funds, where the value stays steadier and a bad quarter cannot derail the plan.
Be honest about risk
Every category carries a different level of volatility. Equity funds swing hard but reward patience. Debt funds stay calmer with more modest returns. Hybrid funds sit in between. The right category is the one you can hold through a fall without panic-selling.
Look past last year's winner
The top-performing fund of any given year is rarely the top performer of the next. We assess a fund on the consistency of its process, the tenure and record of its manager, portfolio quality, expense ratio and how it behaved in past drawdowns — not on a single trailing number.
Types of mutual funds in India
Every category answers a different question. The mix — not the individual scheme — is what drives most of your outcome.
Equity Funds
Invest mostly in shares. Higher risk, built for long horizons. Sub-types include large-cap, mid-cap, small-cap, flexi-cap, ELSS (tax-saving) and sector or thematic funds.
Debt Funds
Invest in bonds, government securities and money-market instruments. They aim for steadier, more modest returns than equity and suit shorter horizons or the stable portion of a portfolio.
Hybrid Funds
Combine equity and debt in a single fund to balance growth with stability. Sub-types include aggressive hybrid, balanced advantage, multi-asset and arbitrage funds.
International & Gold
Feeder funds investing in overseas equities, plus gold and silver funds. Useful for spreading country risk and adding an asset that behaves differently from Indian equity.
Solution-oriented
Retirement and children's funds that carry a mandatory lock-in of five years or until the goal is reached. The lock-in is the point — it stops you dipping into a long-term corpus.
Index & ETF Funds
Track an index such as the Nifty 50 rather than trying to beat it. Costs are typically far lower than an actively managed fund, and there is no fund-manager risk to assess.
SIP, Step-Up & Lumpsum Calculators
Model a monthly SIP, a SIP that grows with your income, or a one-time lumpsum — and see what each compounds into.
Illustrative only. The expected return is an assumption you choose, not a guarantee — actual mutual fund returns vary and can be negative over short periods. Calculations assume the contribution is made at the start of each month, that returns compound monthly for SIPs and annually for a lumpsum, and that the step-up is applied once every 12 months. Figures are gross of exit load, expense ratio, taxes and inflation. Mutual fund investments are subject to market risks; please read all scheme-related documents carefully.
Which one suits you?
Both are simply ways of putting money into the same fund.
A SIP invests a fixed amount at a regular interval — say ₹10,000 every month. It spreads your entry across many NAV levels, which averages your buying price and removes the pressure of timing the market. It suits anyone with a steady monthly inflow.
A lumpsum invests a larger amount in one go. It works when you have a surplus ready — a bonus, maturity proceeds, a property sale — and are comfortable entering at the current market level.
Most investors end up using both: a monthly SIP for discipline, and an occasional lumpsum when something extra arrives. If a lumpsum feels uncomfortably large to deploy at once, an STP can stage it in over several months.
A quick rule of thumb
- Money arriving monthly → SIP
- Money already sitting idle → lumpsum, or STP if markets feel stretched
- Income rising each year → add a step-up to the SIP
- Corpus built and income needed → SWP
Account types we service
Folios can be held individually or on behalf of a family, business or trust.
Key benefits of investing in mutual funds
Professional management
Every fund is run by a qualified fund manager and a research team deciding what to buy, hold and sell. You get institutional-grade decision-making without having to track markets yourself.
Diversification
A single fund spreads your money across dozens or hundreds of securities. No one company or sector can sink your entire investment, which lowers risk sharply compared with holding two or three stocks.
Affordability
You do not need a large corpus to begin. A SIP can start from ₹500 a month, so a small investor gets access to the same professionally managed portfolio as a large one.
Liquidity
Open-ended funds let you redeem on any business day at the prevailing NAV, with money credited to your bank shortly after. Your investment stays accessible, unlike a deposit locked for a term.
SEBI regulated
Every scheme is regulated by SEBI, which mandates regular disclosure of holdings, NAV and costs. You always know where your money sits and what you are paying to hold it.
Compounding
When returns are reinvested rather than withdrawn, they begin earning returns of their own. Held over long periods, this is what turns steady, modest investing into a meaningful corpus.
Understanding NAV
NAV, or Net Asset Value, is the per-unit price of a mutual fund. It tells you what one unit is worth on a given day.
It is the total value of the fund's assets, minus its liabilities, divided by the number of units held by all investors. NAV is published once at the end of each trading day — not live like a share price — so the figure you see reflects that day's closing prices of the fund's holdings.
A common myth is that a fund with a lower NAV is cheaper or better value. It is not. NAV reflects only the current per-unit value, not how expensive or how good the fund is. What matters for your return is the percentage the NAV grows, not its absolute number. A fund at ₹12 and one at ₹480 that both grow 14% leave you in exactly the same place.
Cut-off timing
Orders placed before the daily cut-off receive that day's NAV; later orders receive the next business day's. For most equity schemes the cut-off is 3:00 PM.
Units, not price
Your money buys units at the applicable NAV. A falling NAV during a SIP simply means the same instalment buys more units — which is the whole point of averaging.
Published daily
Every AMC publishes NAV each business day, and AMFI hosts them centrally. Nothing about a fund's pricing is hidden from you.
Mutual fund charges, explained plainly
Three costs exist. You should understand all three before you invest, not after.
Expense ratio
The annual fee an AMC charges to manage the fund, expressed as a percentage of assets. It is already built into the NAV, so you never pay it separately — but it quietly reduces your return every year, which is why we weigh it during selection.
Exit load
A small charge some funds apply if you redeem before a set period, often within a year. It exists to discourage very short-term exits and varies from fund to fund. We flag it before you invest, not after.
How we are paid
We are a distributor. Fund houses pay us a trail commission on the assets we service, disclosed to you for anything we recommend. You pay us no separate advisory fee. If a recommendation would not survive that disclosure, we do not make it.
How mutual funds are taxed in India
Tax depends on the type of fund and how long you stay invested. When you redeem at a profit, the gain is treated as a short-term or long-term capital gain.
Equity-oriented funds
Funds holding 65% or more in Indian equity. Gains on units held under 12 months are short-term and taxed at 20%. Held beyond 12 months, gains are long-term and taxed at 12.5% on the amount above ₹1.25 lakh in a financial year.
Debt funds
For units bought on or after 1 April 2023, gains are added to your income and taxed at your slab rate regardless of holding period. Units bought before that date follow the older rules, so the purchase date matters.
Hybrid funds
Treatment follows the equity allocation. At 65% or more in equity, equity rules apply. Below that threshold, non-equity or debt rules may apply instead — so the fund's actual allocation, not its name, decides the tax.
Dividend / IDCW
Any dividend or IDCW payout is added to your total income and taxed at your applicable slab rate. TDS may be deducted by the fund house before the payout reaches you.
Frequently asked questions about mutual funds
Other products in our suite
Not sure if this fits your plan?
Tell us your goal and timeline. We will tell you honestly whether Mutual Funds belongs in your portfolio — or whether something simpler would serve you better.
- A senior advisor calls you, not a call centre
- Recommendation matched to your goal and risk profile
- Written summary after the call
- No cost and no obligation
Is Mutual Funds right for you?
Every product suits a particular goal, horizon and temperament. A short conversation is the fastest way to find out where this fits in your plan — or whether something else serves you better.