Mutual Funds: Build Wealth via SIP and Lump-Sum Plans
Invest in Shriram Financial Services mutual funds to grow wealth, plan tax-efficient investing, or build retirement savings, via SIP or lump-sum.
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Mutual Funds: Expert-Managed Portfolios Built for Your Goals
Invest in mutual funds with Shriram Financial Services and put your money into professionally managed portfolios built for your goals. Whether you are investing for wealth creation, income, or long-term financial milestones, Shriram Financial Services gives you access to a wide range of mutual fund schemes from leading asset management companies. Compare them side by side and start investing online in just a few clicks.
How Mutual Funds Work - NAV, AUM, and Fund Manager
When you invest, you purchase units of a fund at the current Net Asset Value (NAV). The NAV changes daily based on the market value of underlying securities.
You invest money
Transfer funds via SIP or as a lump-sum. Your money is pooled with other investors.
Fund manager invests
Buys equities, bonds, or other instruments in line with the fund's stated mandate and SEBI category.
NAV is calculated daily
Total assets minus liabilities, divided by outstanding units = today's NAV.
You redeem at NAV
Units are redeemed at the current NAV. Gains or losses are credited to your account.
Term
Meaning
NAV
Price per unit of a fund, calculated daily
AUM
Total market value of assets managed by the fund
Expense ratio
Annual fee charged by the fund (% of AUM)
Exit load
Fee on redemption before a specified period
Units
Portions of the fund you own after investing
Types of Mutual Funds in India
SEBI classifies mutual funds into well-defined categories, making it easier for investors to align fund selection with their financial goals, risk appetite, and investment horizon. Here is an overview of the key types of mutual funds in India:
Category
Sub-types
Ideal for
Risk level
Horizon
Equity
Large cap, Mid cap, Small cap, Flexi cap, ELSS
Long-term wealth creation
High
3+ years
Debt
Liquid, Short-term, Gilt, Corporate bond
Capital preservation, income
Low
1 day–3 years
Hybrid
Balanced advantage, Aggressive, Conservative
Moderate risk, balanced growth
Moderate
3–5 years
Solution-oriented
Retirement, Children's fund
Specific life goals
Moderate
5+ years
Other / Index
Index funds, ETFs, Fund of funds
Passive, low-cost investing
Moderate
3+ years
ELSS Funds
Equity-Linked Savings Scheme
Tax saving under Section 80C + wealth creation
High
3+ years (mandatory lock-in period)
Open-Ended
Any of the above (entry/exit anytime)
Flexible investment horizon
Varies
Flexible
Close-Ended
Fixed Maturity Plans (FMPs)
Defined maturity with predictable returns
Low to Moderate
Fixed (typically 3–5 years, until maturity)
Mutual Fund Calculators and Tools
Sound investment decisions begin with precise planning. Our free mutual fund calculator tools enable you to model scenarios, set realistic return expectations, and determine the right investment amount for your goals - before you invest a single rupee.
Mutual Fund Risks & Riskometer
Every investment carries risk, and mutual funds are no exception. However, informed investors know that risk is not something to avoid; it is something to understand, measure, and manage. SEBI mandates all mutual fund schemes in India to carry a Riskometer - a standardised visual rating that classifies each fund's risk level across six categories.
Investors understand that their principal will be at
Moderately High Risk
Tax Benefits of Mutual Funds
One of the most compelling advantages of mutual fund investing in India is the potential for significant tax efficiency. From the Section 80C deduction available through ELSS funds to the concessional Long-Term Capital Gains (LTCG) tax treatment on equity holdings, mutual funds are among the most tax-smart instruments available to Indian investors in 2026.
Mutual Fund Taxation – At a Glance
Fund Type
Holding Period
Tax Type
Tax Rate
80C Benefit
Equity & Equity-Oriented
< 1 Year
STCG
20%
Applicable only if invested through ELSS schemes
Equity & Equity-Oriented
> 1 Year
LTCG
12.5% (above ₹1.25 lakh gains)
Applicable only if invested through ELSS schemes
Debt Funds (post Apr 2023 investments)
Any
Added to income
As per income tax slab
Not applicable
Hybrid Funds (Equity-Oriented)
< 1 Year
STCG
20%
Not applicable
Hybrid Funds (Equity-Oriented)
> 1 Year
LTCG
12.5% (above ₹1.25 lakh gains)
Not applicable
Note: Tax rules are subject to change as per Union Budget announcements. Always consult a tax advisor for personalised guidance.
What is a Systematic Investment Plan in Mutual Funds?
A Systematic Investment Plan (SIP) allows you to invest a fixed amount into a mutual fund at regular intervals - weekly, monthly, or quarterly, rather than committing a large amount upfront. SIP investment is the preferred route for salaried individuals and first-time investors because it instils financial discipline while harnessing the power of compounding.
Criteria
SIP
Lump-Sum
Minimum amount
₹100
₹100
Market timing
Not needed
Critical
Avg. cost
Rupee-cost averaging
Single price
Best for
Salaried investors
Lump-sum surplus
Tax
Each SIP = new investment
One holding date
Metric
Value
Monthly SIP
₹5,000
Expected p.a.
12%
Invested (20 years)
₹12L
Estimated Returns
₹ 46 L (approx.)
SWP, STP, and Lump-Sum - Other Mutual Fund Investment Modes
Beyond SIP, mutual fund investors in India have access to additional investment and withdrawal strategies that offer greater control over cash flows and portfolio rebalancing. Understanding these modes enables you to tailor your investment journey to your life stage and income needs.
Mode
Full Form
How It Works
Ideal For
SWP
Systematic Withdrawal Plan
Withdraw a fixed amount at regular intervals from your mutual fund corpus
Retirees; passive income seekers; post-goal cash flow
STP
Systematic Transfer Plan
Transfer a fixed sum periodically from one mutual fund to another within the same AMC
Gradual equity deployment; risk management during volatility
Lump-Sum
-
Invest the entire amount at once in a mutual fund scheme
Investors with idle surplus; deploying bonuses or windfalls
Switch
-
Move your investment from one scheme to another within the same AMC, such as between plans, options, or fund categories
Investors rebalancing portfolios, moving between direct and regular plans, or realigning with changing financial goals
NFO
New Fund Offer
Subscribe to a new mutual fund scheme during its initial offer period, typically launched at a fixed unit price before it reopens for ongoing purchase and sale
Investors seeking early entry into a new theme or strategy; those comfortable investing without a prior performance track record
Got Questions?
View All FAQsA mutual fund is a pooled investment vehicle regulated by SEBI that collects capital from multiple investors and deploys it across a diversified portfolio of securities managed by a professional fund manager. Each investor holds units proportional to their contribution, and the value of these units (Net Asset Value) fluctuates based on the performance of the underlying portfolio.
Mutual funds offer significant investor protection, including mandatory disclosures, independent trustee oversight, and daily NAV transparency. However, returns are not guaranteed, and fund values are subject to market risk. The safety of an investment depends on the fund category; for example, liquid funds are considered low-risk, whereas small-cap equity funds are more volatile. Selecting funds aligned with your risk profile is key.
NAV, or Net Asset Value, is the per-unit price of a mutual fund scheme. It is calculated daily by dividing the total market value of the fund's portfolio (minus liabilities) by the total number of outstanding units. A rising NAV indicates that the fund's portfolio has appreciated in value.
Most mutual fund schemes in India allow investments starting from as low as ₹100 via SIP and lump-sum payment. Some schemes have slightly higher minimums, while index funds and ETFs can be purchased for the price of a single unit on a stock exchange.
Need A Clearer Direction?
Let's get in touch on a 15-Minute call where we would be able to answer any questions you may have. Our Advisor will additionally help map your wealth mix and demonstrate what a dedicated advisor would do differently.