Frequently Asked Questions
Everything you need to know about mutual funds, investing, and Horizon Finserve.
A mutual fund is a professionally managed investment vehicle that pools money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities. When you invest in a mutual fund, you buy units that represent a portion of the fund's holdings. The fund is managed by a professional fund manager who makes investment decisions on behalf of the investors.
The value of your investment fluctuates with the market, and you can redeem your units at the current Net Asset Value (NAV). Horizon Finserve helps you choose from thousands of mutual fund schemes across equity, debt, hybrid, and other categories based on your risk appetite and financial goals.
The minimum investment amount varies across fund houses and schemes. Through Systematic Investment Plans (SIPs), you can start with as little as ₹500 per month. For lump sum investments, the minimum amount is typically ₹5,000 or more, depending on the fund.
Some funds also allow investments as low as ₹100 through certain platforms. Horizon Finserve offers a wide range of funds with different minimum investment requirements, making it accessible for investors with all budget sizes. We help you choose funds that align with your investment capacity and financial goals.
Mutual funds in India are regulated by the Securities and Exchange Board of India (SEBI), which ensures transparency, investor protection, and fair practices. All mutual funds must register with SEBI and comply with strict disclosure and operational guidelines.
While mutual funds are subject to market risks, they offer diversification which reduces the impact of any single investment's poor performance. Debt funds and hybrid funds offer relatively lower risk compared to equity funds. Horizon Finserve only recommends SEBI-registered mutual funds, ensuring your investments are safe and compliant with regulatory standards.
A Systematic Investment Plan (SIP) involves investing a fixed amount regularly (monthly/quarterly), which helps in rupee cost averaging and instills financial discipline. It is ideal for salaried individuals who want to build wealth gradually.
A lump sum investment is a one-time large investment, suitable when you have a surplus and a favorable market outlook. SIPs reduce the impact of market volatility, while lump sum investments can give higher returns if markets are bullish. Horizon Finserve recommends the best approach based on your cash flow, risk appetite, and market conditions.
Tax implications depend on the type of mutual fund and the holding period. For equity funds, Long-Term Capital Gains (LTCG) over ₹1 lakh are taxed at 10% if held for more than 1 year. Short-Term Capital Gains (STCG) are taxed at 15%.
For debt funds, LTCG (holding over 3 years) is taxed at 20% with indexation, while STCG is taxed as per income tax slab. ELSS funds offer tax deduction under Section 80C up to ₹1.5 lakh but have a 3-year lock-in.
Horizon Finserve provides tax-efficient investment strategies and helps you plan withdrawals to minimize your tax burden.
Mutual funds are suitable for a wide range of investors – from beginners to experienced investors. They are ideal for salaried individuals seeking wealth creation, retirees looking for regular income, parents planning for their children's education, and anyone who wants professional management of their investments.
Mutual funds cater to different risk profiles – conservative investors can opt for debt funds, moderate investors can choose hybrid funds, and aggressive investors can go for equity funds. Horizon Finserve helps you identify the right funds based on your age, income, risk tolerance, and financial objectives.
You can withdraw your mutual fund investments through various methods. Systematic Withdrawal Plan (SWP) allows you to withdraw a fixed amount at regular intervals, providing a steady income stream. Lump Sum Redemption lets you withdraw your entire investment or a partial amount in one go.
Systematic Transfer Plan (STP) enables you to gradually move your money from one fund to another to reduce risk. Horizon Finserve helps you choose the right withdrawal strategy based on your cash flow needs, tax implications, and market conditions.
Direct plans are bought directly from the Asset Management Company (AMC) with lower expense ratios, as there is no intermediary. Regular plans are purchased through mutual fund distributors or advisors and have higher expense ratios due to distribution and advisory fees.
Direct plans are suitable for investors who have good knowledge of mutual funds and can do their own research. Regular plans are better for investors who need professional guidance and advisory services. Horizon Finserve offers expert guidance for both options, helping you choose based on your investment knowledge and preference.
Horizon Finserve provides end-to-end mutual fund solutions, including expert recommendations, portfolio analysis, goal-based investing, and continuous monitoring. We analyze your financial goals, risk appetite, and investment horizon to recommend the best mutual funds across categories.
Our platform offers a simple and hassle-free way to invest, with regular portfolio reviews and rebalancing. Whether you are a first-time investor or an experienced one, Horizon Finserve simplifies the mutual fund journey, helping you achieve your financial goals efficiently with professional guidance.
Absolutely! Mutual funds are one of the best vehicles for goal-based investing. For child education, you can invest in equity or hybrid funds with a long-term horizon (10-15 years) to build a substantial corpus.
For retirement, you can choose a mix of equity funds for growth in the early years and gradually shift to debt funds as you near retirement to protect your corpus. Horizon Finserve specializes in goal-based investing – we help you define your goals, estimate the required corpus, and recommend the right mutual funds to achieve them with precision.