RTA's (Registrar and Transfer Agents) allocate temporary units to clients based on the orders received from our system, as payment settlement takes time and RTAs do not want Investors to wait for payment settlements for allocating MF units as the NAV of funds changes daily. Such allotment is temporary in nature and RTA's reverse the units allocated in case of no payment in T+5 days where T represents the day when orders was executed. Our system removes such data based on latest RTA files.
Any order placed between 6:00 AM and 3:00 PM gets executed on the same day. In case you are making an order after the market closes (Post 3:00 pm), orders will hit the system for execution on the subsequent working day at 6:05 AM. The unit allocation of such orders will happen at T+2 days, where T represents the day when order got executed.
Unit allocations by RTAs (Registrar and Transfers Agents) usually happen in T+2 days though in some cases it may take more time than that. Explorefunds has no control over this process as it gets executed by the RTAs
Investor can click on redeem button in Holding screen and can decide on Unit quantity or Value which needs to be redeemed. Once an order is initiated from the platform, the investor would receive an OTP via SMS & email on the registered mobile number and email id asking for a confirmation, once Investor gives confirmation for redemption, the order gets placed by the system. In case of Equity Funds redemption, the amount will get credited in your bank account in T+3 days and in case of Debt funds in T+1 day where T stands for transaction date (working day).
In case you have made an order on a non working day/weekend or post 3:00 PM(any working day) your order will be pushed for execution at 6:00 AM on the next working day. In case you do not see any allocation in Explorefunds after 3-4 working days, please escalate the matter to us along with your bank transaction copy. Our customer support team will follow-up with RTAs for the same.
No, Explorefunds does not charge any upfront fee for investments in regular plans to its investors. An Investment account with Explorefunds is totally free. Explorefunds also does not charge any direct fee on mutual fund transactions executed through its platform on regular plans.
The available payment option for investments is NEFT/RTGS, Net Banking, and one-time Mandate. The payment for direct fund subscription can be paid through Debit Card, Net Banking, Wallet, and UPI.
Currently, this option is not available. However, payment through UPI will soon be available on the Website.
Any investor holding a Pan Card and a valid KYC can invest in Mutual Fund
STP is a Systematic Transfer Plan. If you have a lump sum amount to invest and want to stagger your entry points while investing in mutual funds then you can do so using the option of STP. In STP you can initially invest in a debt fund and register STP through which the amount gets transferred to equity fund at a predefined frequency chosen by you. Usually STP is opted by Investors to take advantage of volatility while investing in equity funds.
SWP is a Systematic Withdrawal Plan. If an investor needs regular income from mutual funds at a regular frequency then SWP can be set up. Investors need to decide how much amount is required to be withdrawn and at what frequency. Based on these details, the amount will get credited in the Investor's bank account regularly.
We enable accounts for transactions to our new clients within two working days. In case of non availability of right information from your end or in case of any data mismatch it may take more time. Our customer support team will reach out to you in such cases to update you about the progress of your account. We are also receiving a lot of cases where our customer's KYCs are on hold by the KRA agencies, in such cases we ask investors for signed documents and modification forms from our clients to get them KYC verified. Explorefunds does not have any control over these processes as is handled by government appointed KRAs.
We as a Mutual fund distributor are bound by the regulations set by the regulator. As regulator expect us to record Bank details of our clients as per KYC (Know your customer) guidelines, we ask our clients to furnish bank account details for KYC compliance purpose only. We verify that the bank account information submitted actually belongs to you. We only ask basic data like bank account number,IFSC etc.
KYC stands for "Know Your Customer" which is a must for all financial intermediaries who allow investors to invest in financial instruments as per the directives of financial market regulator SEBI. Explorefunds only allows investors with KYC to invest in its platform. Since the KYC approvals are done by the third party agencies called KRAs, they take some time to approve a KYC request. any delay in KYC approval can delay account activation process.
Absolute Return is a point to point return given by a mutual fund in a specific time period. With the help of historical absolute return figures shown on Explorefunds, you can easily calculate how much the investment amount would have grown to in a particular time period.
The Compound Annual Growth Rate is a representation of annualized return over multiple time periods. CAGR takes into consideration the compounding effect of return. The usual representation of mutual fund returns is in terms of CAGR.
Explorefunds has created SIP & Lumpsum baskets to help investors to invest in the mutual funds for common goals like wealth creation, Retirement corpus etc. These baskets are created with Explorefunds's curated list of funds with consistent performance. These baskets can be a great starting point for your investments if you are confused as to where to start.
The SIP & Lumpsum baskets can be a great starting point for your investments if you are confused as to where to start or you are doing mutual fund investment for the first time. Every basket description has mentioned Ideal Investment horizon. This will help you make an informed decision while you are investing.
In Top funds, you will find all the mutual fund categories which are currently available in the market. Every category has listed top 10 funds based on the ratings. If you want to know more about these categories, then you may look at the description which has information about the category and minimum investment horizon.
Most of the Mutual Fund schemes offer two options viz. Growth and Dividend. In growth option, the NAV of the mutual fund grows as per the capital markets (Equity or Debt). In Dividend option, part of the profit is declared as a dividend (Reinvestment or Payout) to the investors and the remaining growth is seen in NAV movement. Hence in both Growth and Dividend option, the return is exactly same.
A starting point in selecting a fund should be to define for how long you wish to invest and what is the risk you are willing to take. Based on this, you can select from various categories that are available on the Platform. Every category also has a small description of where it invests and what should be the minimum investment horizon which will help in selecting the suitable fund.
Income from Mutual funds comes under Income from Capital Gain as per Income Tax Act, 1961. Below is the taxation applicable for Mutual Funds: For Equity Oriented Schemes, Short Term Capital Gain i.e. STCG is when Holding Period is less than 12 Months Long Term Capital Gain i.e. LTCG is when Holding Period is more than 12 Months For an Individual & NRI tax applicable is: LTCG (On Profit exceeding 1 Lakh) = 10% STCG = 15% For Other than Equity Oriented Schemes Short Term Capital Gain i.e. STCG is when Holding Period is less than 36 Months Long Term Capital Gain i.e. LTCG is when Holding Period is more than 36 Months For an Individual & NRI applicable tax rate is : LTCG = 20% (With Indexation) STCG = As per the applicable tax slab In addition to this, the dividend declared is also taxable which is paid by the Mutual Fund Scheme. The details of the same are: For an Individual & NRI dividend is taxed at: Equity Oriented Schemes = 10% + 12% Surcharge + 4% Cess = 11.648% Debt Schemes = 25% + 12% Surcharge + 4% Cess = 29.12%
Expense Ratio is the cost mutual fund charges for managing Investors' money. Expense Ratio comprises of multiple expenses such as sales & marketing / advertising expenses, administrative expenses, transaction costs, investment management fees, registrar fees, custodian fees, audit fees. Expense ratio for regular funds is higher as compared to direct funds because if you invest in regular funds, commission is paid to the distributor through whom you have invested whereas in direct funds, no commission is involved.
As disclosed on AMFI's website, the expense ratio is calculated as a percentage of the Scheme's average Net Asset Value (NAV). The daily NAV of a mutual fund is disclosed after deducting the expenses.
Some of the equity & debt funds charge exit load if you redeem or exit from a fund within a specified time period. This exit load is different for each scheme and category. Commonly, equity mutual funds charge 1% exit load if redeemed before 1 year.
When a Mutual Fund scheme gets launched the NAV starts from Rs. 10 and increases from there. But while selecting a fund, the decision cannot be solely taken based on NAV. The market movement defines the fund performance and its NAV, hence, if the market goes up the NAV goes up even if it is very high or very low. Same happens if the market goes down. Hence, it is important to give preference to fund's performance and quality over it's NAV.
Under section 80C, ELSS Funds i.e. Equity Linked Saving Schemes are eligible to get you a tax benefit up to investment of 1.50 Lakhs. Since this is a tax saving investment, there is a lock - in period of 3 Years applicable.
Based on the availability of funds, investment in ELSS can be done either in Lump sum or SIP. The tax saving investment is usually done at the end of the financial year, but it is beneficial to do SIP because the entry points are staggered in a year which will help in getting the benefit of the volatility.
Since there is a lock-in period in ELSS of 3 years, if you do SIP in ELSS funds every installment should complete a period of 3 years for it to get out of the lock in period. Hence, only the amount which completes the period of 3 years can be redeemed.
In case the order has been placed with an already active mandate, SIP will be regularized in T+14 days. In case the order has been placed with a new Bank Mandate, you can safely expect the SIP to be regularized by the next debit date. Usually, a new mandate takes 15-20 days to get approved by banks. This turn around time also depends on the efficiency of your bank, some banks respond quickly whereas bank like SBI usually takes T+30 days to approve a bank mandate. In case you have missed a SIP, you can simply make a order of additional investment from the platform to compensate it.
Bank Mandates are basically a pre-approved limit on your bank account which can enable regular payments on a fixed date. A mandate amount is just a limit and the actual regular deductions from your account would be based on the actual SIP order placed by you on Explorefunds. A mandate of the relatively large amount can help you to enable multiple SIPs using the same mandate.
Deduction of SIP from your bank account depends on the approval status of your bank mandate. Banks typically take 15 days to one month to approve a Bank Mandate for auto deduction of future SIP payments.
There is no option to skip the SIP. The solution for this is to stop the SIP and restart again as per your need.
If any of the SIP installments is missed, then you can do additional purchase in the fund where SIP is going on. Such additional Purchase can be initiated by the investor or Investor can instruct Explorefunds's customer care to do so.