Question 1

What's the minimum SIP amount and how do I choose between SIP, lump sum, and STP?

Accepted Answer

You can start an SIP from as little as ₹500 per month, most equity funds accept SIPs in the ₹500 to ₹1,000 range. The right mode depends on the situation:

• SIP: best for long-term, salaried investors who benefit from rupee cost averaging.
• Lump sum: useful when you have a one-time inflow and markets are reasonably valued.
• STP (Systematic Transfer Plan): park lump sum in a debt or liquid fund and stagger transfers into equity over 6 to 12 months.
• SWP (Systematic Withdrawal Plan): structured withdrawals during retirement or income drawdown.

We pick the mode based on your goal, time horizon, and current market context.

Question 2

How are mutual fund gains taxed in India?

Accepted Answer

Tax depends on the fund category and holding period:

• Equity-oriented funds: Long-term capital gains (held over 12 months) taxed at 12.5% beyond a ₹1.25 lakh annual exemption. Short-term gains taxed at 20%.
• Debt funds (units purchased on or after 1st April 2023): all gains taxed at slab rates, no indexation, regardless of holding period.
• Hybrid funds: taxed as equity or debt depending on the equity allocation in the scheme.

Dividend income is taxable at slab rates in the investor's hands. We integrate this with your overall ITR planning so net-of-tax returns stay accurate.

Question 3

How are equity funds categorised by market cap?

Accepted Answer

SEBI classifies equity funds based on the underlying companies by market capitalisation:

• Large Cap: top 100 listed companies by market cap. Stable, lower volatility, slower growth.
• Mid Cap: ranked 101 to 250. Higher growth potential with moderate volatility.
• Small Cap: ranked below 250 (typically under ₹500 crores market cap). Highest growth potential and highest volatility.

Most long-term portfolios blend all three, weighted to your risk appetite. We rebalance the mix during periodic reviews so the allocation doesn't drift over time.

Question 4

Do you charge any fee for advisory?

Accepted Answer

No separate advisory fee. We operate as sub-distributors through NJ Wealth and are compensated via the trail commission embedded in regular plan expense ratios paid by the asset management company. There is no upfront fee, no transaction fee, and no exit cost beyond the fund's own exit load where applicable.

Question 5

How do I track and manage my portfolio?

Accepted Answer

Through the NJ Wealth platform you get web portal, Android, and iOS app access with no Demat account requirement. You can see portfolio summary, gains and losses, holdings, transactions, and tax statements in real time. Payments settle directly to and from your linked bank account. We typically schedule a review call every 6 months and adjust the SIPs based on goal progress and market context.

Mutual Funds Advisory

Our Process

Goal Discovery

Portfolio Design

KYC & Onboarding

Ongoing Review

Features

Large Cap

Mid Cap

Small Cap

Goal-aligned SIPs

Key Points

Frequently Asked Questions

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