FrequentlyAskedQuestions

What is Mutual Fund?

A Mutual Fund is the trust that pools the savings of a number of investors share a common goal. Anybody with an investible surplus of as little as few hundred rupees can invest in Mutual Funds. Money collected is invested by a professional fund manager in differnt types of securites. Investment in Mutual Fund is the most efficient as it offers the lowest charge to the investor.

What is good time to invest?

It is always a good time to invest. Market cycles offer investment opportunities in different assets at different times. Ideally, the best time to invest in equity is when the markets are at their low points. But it is next to impossible to perfectly time the market and to capture the exact bottom. Instead it is always better to make smart investment in promising securities at attractive valuations.

What are your charges? How do I begin my investment journey with you?

We do not charge investors any fee. We are remunerated by the asset management companies through trail commissions. To avail our services, you would need to complete your KYC process by providing the required details (PAN card, Address Proof and cheque leaf). You will also require to provide a passport size photo, if you purchase off line.

What is the minimum investment?

The minimum investment to start off investing with AG Money Mart is Rs. 2,000 through Systematic Investment Plans (SIP) or Rs. 5,000 as a one time investment. There is no upper limit to investments in this model. Incremental additions can be made in multiples of Rs. 1,000.

Why should I invest in mutual fund?

Mutual Funds are diversified portfolios of different securities. Equity Mutual Funds contain equity and equity related instruments. They are relatively safer compared to direct equities as mutual funds are inherently diversified. Equity exposure in any portfolio is needed to beat inflation in the long term. Mutual Funds are also more liquid than their underlying stocks/bonds.

Would you suggest SIP or Lump Sum? What difference does a step-up SIP make? How does it impact returns?

SIP (Systematic Investment Plan) is an evergreen investment option. SIP is a regular contribution made into a particular scheme. Typically, SIPs run on a monthly basis. SIP helps average out cost and capture all market movements and can smoothen the investment journey during turbulent times. SIPs are disciplined tool for long term investments.

A lump sum investment is a one time investment into a particular scheme at a specific time. Lump Sum investment can be used when attractive market opportunities arise or to further enhance the return generation potential of the investment. You could also make a lump sum investment whenever you have surplus liquidity.

Stepping up SIPs at intervals (every six month or every year) will make a huge difference in your long term corpus as your investments compounds.

While investing in ELSS, is it better to do a lump sum or SIP?

ELSS has 3- year lock in period. Doing a lump sum gives you the flexibility to redeem all your investments exactly after 3 years. With respect to the investor's income flow a SIP may be the better option. SIPs come with the added benefit of rupee cost averaging.

How do I know if the portfolio is moving in the right direction if return is low? Are we making good returns?

Short term under performance is part of investment journey. Returns usually follow with a lag and are not linear. This means performance on a month to month basis could vary but will move upwards in a 3 to 5 year horizon. Our objective is not to deliver the highest returns every time but to create a smooth investment experience with minimal risks so that you can optimize your returns to meet your financial goals at different stages of your life

We will always be available to discuss investment performance and the way forward. If you make 12% CAGR on 3 to 5 year horizon you are on right track.

When can I withdraw my investments?

Our investment strategies are formulated for the long term. Ideally, investors should be willing to follow the investment strategy for at least 5-10 years to reap the benefits. To ensure that the investment process stays smooth- we encourage investors to start with an emergency fund and then move on to long term investments. You will get the compounding benefit more if you remain invested for longer period. However due to unforeseen event if you have exhausted your emergency fund and you still need more money, you can withdraw at any time after one year without exit load(except ELSS in which lock-in period is 3 year). If you withdraw within one year you may be charged exit load.

How does exit load work?

An exit load refers to the fee that the Asset Management Company charges investors at the time of exiting or redeeming their fund units. Usually these charges are for redemption that take place within a year from date of investment. Some funds do not have an exit load.

How long does it take to receive my money after redemption?

Your account gets credited within 1-2 working days.

""Mutual Funds investments are subject to risk." How can risk be avoided/minimized with investment through AG Money Mart?

Yes, Mutual Funds investment are subject to risk, if you are not aware of which fund and other financial instruments shuld be chosen to accomplish your different financial goals. Like doctors can diagonise the ailment and prescribe the proper medicine to take care of your health, our experienced and qualified team can diagonise your financial problem and recommend solutions to accelerate growth in your returns on investments so that you can achieve your financial goals timely with minimal risk. We at AG Money Mart provide customized solutions to your different financial needs as it varies individual to individual depending upon risk appetite and life stages.