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Mutual Funds —
Everything You Need

SEBI fund categories, live NAV search with returns, 5-fund comparator, KYC guide, and how to start your first SIP. Curated by Neha Verma, CFP.

SEBI Categories Risk-o-Meter How to Start SIP Live NAV Search Fund Comparator KYC Guide Myths Busted
SEBI Circular — October 2017

SEBI Mutual Fund Categories

SEBI standardised all mutual fund schemes into defined categories. Every investor should know these before choosing a fund.

Equity Funds — Long-Term Wealth (5+ years)

Equity

Large Cap Fund

Min 80% in top 100 companies by market cap. Most stable among equity funds.

Risk: Moderately High  | Horizon: 5+ years
Equity

Mid Cap Fund

Min 65% in companies ranked 101–250 by market cap. Higher growth with more volatility.

Risk: High  | Horizon: 7+ years
Equity

Small Cap Fund

Min 65% in companies ranked 251 and below. Highest growth potential with very high volatility.

Risk: Very High  | Horizon: 10+ years
Equity

Flexi Cap Fund

No fixed allocation across large, mid, small cap. Fund manager decides the mix.

Risk: High  | Horizon: 5+ years
Equity · Tax Saving

ELSS Fund

Tax saving with 3-year lock-in. Section 80C deduction up to Rs 1.5 lakh. Shortest lock-in among 80C options.

Lock-in: 3 years  | 80C: up to Rs 1.5L
Equity

Sectoral / Thematic

Invests in a specific sector or theme. Concentrated risk — can significantly outperform or underperform.

Risk: Very High  | Horizon: 7+ years

Debt Funds — Stability and Income

Debt

Liquid Fund

Invests in instruments maturing within 91 days. For emergency fund and short-term surplus.

Risk: Low  | Horizon: 1 day–3 months
Debt

Short Duration Fund

Portfolio duration 1–3 years. Better returns than FDs over 1–2 year horizons.

Risk: Low to Moderate  | Horizon: 1–3 years
Debt

Corporate Bond Fund

Min 80% in highest-rated (AA+) corporate bonds. Better yield than G-Secs.

Risk: Moderate  | Horizon: 2–3 years

Hybrid and Index Funds

Hybrid

Balanced Advantage Fund

Dynamically manages equity-debt allocation based on market valuations. Lower volatility than pure equity.

Risk: Moderate  | Horizon: 3+ years
Hybrid

Aggressive Hybrid Fund

65–80% equity, 20–35% debt. Taxed as equity. Good single-fund solution for moderate investors.

Risk: Moderately High  | Horizon: 5+ years
Index / Passive

Index Fund

Passively tracks Nifty 50 or Sensex. Very low expense ratio 0.1–0.3%. Returns mirror the benchmark.

Expense: 0.1–0.3%  | Risk: Moderately High
SEBI Mandated Disclosure

The Risk-o-Meter Explained

Every mutual fund must display a six-level risk-o-meter mandated by SEBI. Updated monthly based on portfolio.

Low — Liquid, overnight
Low to Moderate — Short duration debt
Moderate — Balanced funds
Moderately High — Large cap equity
High — Mid cap, flexi cap
Very High — Small cap, sectoral
Step by Step

How to Start Your First SIP

Starting a SIP takes less than 15 minutes once KYC is complete.

1

Complete KYC

PAN + Aadhaar video KYC. One-time, valid for all mutual funds forever.

2

Choose a Fund

Based on your goal, risk tolerance, and investment horizon.

3

Decide Amount

Start with Rs 500/month. Choose a date near your salary credit date.

4

Set Up Auto-Debit

Register NACH mandate. SIP runs automatically every month thereafter.

5

Stay Invested

Do not stop SIP when markets fall. Review annually, not daily.

Calculate Your SIP Returns
Compare Up to 5 Funds

Fund Comparator

Search and add up to 5 mutual funds. Compare live NAV, 1M to 10Y returns, inception date, category, and benchmark side by side. Best performer per period is starred.

One-Time Process

KYC Guide — Complete Once, Invest Everywhere

KYC is valid for all mutual funds with any AMC in India, forever.

01

What You Need

PAN card, Aadhaar for address proof, selfie or video, and bank account details.

02

Where to Complete

Any AMC website or through KRA — CAMS (camsonline.com) or KFintech. Fully online in 10 minutes.

03

Video KYC

Short live video call. Show your PAN, say a few words. Approved within 24 hours.

04

Check KYC Status

Visit cvlkra.com or camsonline.com and enter your PAN.

05

Nominee Registration

Always register a nominee. SEBI mandates this for all new mutual fund accounts from 2023.

06

Bank Mandate (OTM)

Set up One-Time Mandate for automatic SIP debits. Valid for all future SIPs.

Common Misconceptions

Mutual Fund Myths Busted

Many investors avoid mutual funds due to misconceptions. Here are the facts.

MythMutual funds are like stocks — you can lose all your money.
FactA mutual fund holds 30–100 stocks. Complete loss of a diversified fund is virtually impossible. Even in the worst crashes, diversified funds recovered within 3–5 years.
MythYou need a lot of money to start investing.
FactSIPs start at Rs 500/month. Consistent investing matters more than the amount.
MythA lower NAV fund is cheaper and better to buy.
FactNAV has no bearing on future returns. What matters is portfolio quality, expense ratio, and fund manager track record.
MythYou must time the market for SIP to work.
FactRupee cost averaging is the entire point of SIP. Time in the market always beats timing the market.
MythMutual funds charge high fees that eat into returns.
FactIndex funds charge as little as 0.1% per year. SEBI has capped expense ratios to protect investors.

Ready to Start Investing in Mutual Funds?

Speak with Neha Verma — CFP certified — for a free, personalised fund selection and SIP plan.

Book a Free Consultation Try the SIP Calculator