Invest Smart

Using SIP (Systematic Investment Plan) Let’s assume a 12% average annual return (reasonable for good equity mutual funds in the long term): Investment Duration Monthly SIP Needed to Reach ₹1 Crore 10 years ₹43,000/month 15 years ₹15,000/month 20 years ₹6,000/month 25 years ₹3,000/month Key Insight: The earlier you start, the less you need to invest thanks to compounding. Using Lumpsum Investment Let’s say you invest a one-time amount at 12% return: Time Horizon Lumpsum Needed Today for ₹1 Crore 10 years ₹32 lakhs approx 15 years ₹18 lakhs approx 20 years ₹10 lakhs approx If you have a large idle sum, Lumpsum can help you reach the goal faster—but comes with higher market timing risk.  How EzyMoneyDeals Helps You Plan for ₹1 Crore Feature How It Helps  Goal Planner Set ₹1 crore as your goal and get a tailored SIP or Lumpsum plan  SIP & Lumpsum Calculators Instantly see how much you need to invest based on time horizon  Fund Suggestions Choose high-performing direct mutual funds (no commission)  SIP Booster Increase SIPs annually to reduce burden and reach your goal faster  Goal Tracker Monitor progress with visuals and regular updates  Expert Advisory Get help from SEBI-registered advisors to build your ₹1 crore roadmap  Pro Tip: If you can’t start with the full amount today, use SIP + Top-ups (gradually increasing your SIP every year by 10–15%) — EzyMoneyDeals lets you automate this easily.  Summary: SIP vs Lumpsum to Earn ₹1 Crore Method Pros Approx Monthly/Initial Investment SIP (15 yrs) Low monthly, disciplined ₹15,000/month Lumpsum (15 yrs) One-time effort, faster compounding ₹18 lakhs  

Withdrawing money from mutual funds is simple and can be done in multiple ways depending on how you invested. Here’s a complete guide: Modes of Withdrawal You can withdraw your money using any of the following: Mode Description Online via AMC website/app Login to the Asset Management Company portal and place a redemption request. Online via platform Platforms like EMDMF Through your distributor/advisor If you invested via an agent or financial advisor. Offline (form submission) Fill a redemption form and submit it to the AMC or mutual fund office. Processing Time Fund Type Settlement Time Equity Funds T+3 working days Debt Funds T+1 or T+2 working days Overnight Funds T+0 or same day T = Transaction day (cut-off time is usually 3 PM) Documents Needed (Only First Time or Offline) PAN and KYC documents (already done for most users) Bank account must be pre-registered for credit of redemption amount Types of Withdrawals Type Use Case Full Withdrawal You exit the entire amount Partial Withdrawal You redeem only part of your units SWP (Systematic Withdrawal Plan) Regular periodic withdrawals (like monthly pension) Points to Keep in Mind Exit Load: Check if there’s an exit load (fee) for early withdrawal (usually 1% if redeemed within 1 year in equity funds). Tax Impact: Equity: 15% (short-term <1 year), 12.5% (long-term >1 year, above ₹1.25 lakh) Debt: As per tax slab or 20% with indexation Ensure your bank account is updated with the mutual fund.  Example: You have ₹1 lakh in a mutual fund. Want to redeem ₹30,000 → Login to the AMC/platform → Select “Redeem” → Enter ₹30,000 or units → Submit → Money comes to your bank in 1–3 working days.  

Delaying your SIP by just 2 years can have a huge impact on your long-term wealth, thanks to the power of compounding.  Scenario: SIP Amount: ₹5,000/month Expected Return: 12% per annum Investment Tenure: 20 years vs 18 years  Comparison Table: SIP Start Time Total Invested Value After 20/18 Years Wealth Created Start Immediately ₹12 lakh ₹49.95 lakh ₹37.95 lakh Start After 2 Years ₹10.8 lakh ₹38.40 lakh ₹27.60 lakh Loss Due to Delay: ₹10.35 lakh  Why This Happens: The first few years’ investments compound the most over time. A 2-year delay = loss of 2 years’ worth of compounding on every future rupee.  Key Lesson: “Time in the market beats timing the market.” Start now, even with small amounts like ₹500/month.  

Power of Compounding Compounding means earning returns on your returns. The earlier you start, the longer your money stays invested and multiplies. Example: ₹5,000/month for 30 years at 12% = ₹1.76 crore ₹5,000/month for 20 years at 12% = ₹50 lakh 10 years early = ₹1.26 crore difference! Higher Risk-Taking Ability Young investors can afford to take more risk because they have time to recover from market volatility. This allows for higher-return investments like equity mutual funds. Cultivates Financial Discipline Regular investing builds a habit of saving and planning. It makes you more aware of budgeting, spending, and long-term goals. More Time for Goal-Based Planning Starting early gives you time to plan for multiple life goals: Buying a house Children’s education Retirement Smaller investments can achieve big goals if started early. Financial Independence at a Younger Age Early investments can help you retire early or take career breaks. You build a solid financial cushion and reduce dependence on others.

Great question! There’s often confusion between ELSS and SIP because they’re both associated with mutual fund investments — but they serve different purposes and operate differently. Here’s a breakdown of the major differences between ELSS and SIP:  ELSS vs SIP – Major Differences Feature ELSS (Equity Linked Saving Scheme) SIP (Systematic Investment Plan) What It Is A type of mutual fund with tax-saving benefits A method of investing regularly in any mutual fund Primary Purpose Tax saving under Section 80C Disciplined and regular investment Tax Benefit Up to ₹1.5 lakh under Section 80C No direct tax benefit (unless invested in ELSS) Lock-in Period 3 years (mandatory) Depends on the mutual fund type (no lock-in by default) Investment Style Lumpsum or SIP SIP only (regular contributions) Returns Market-linked (high potential, high risk) Market-linked (depends on fund type and duration) Withdrawal Only after 3 years from the date of each investment Freely withdrawable unless fund has a lock-in Risk Profile Equity-based, hence moderately high to high risk Varies: debt, hybrid, or equity funds Ideal For Investors looking to save tax and grow wealth Anyone aiming to build wealth with discipline  Quick Explanation: ELSS is a category of mutual fund that qualifies for a tax deduction under Section 80C, with a 3-year lock-in. It’s equity-oriented and suitable for long-term tax-saving and wealth growth. SIP is just a way of investing regularly in any mutual fund — including ELSS. You can do an SIP into an ELSS fund, but not all SIPs are ELSS.  When to Choose What? Goal Best Option Save tax + grow wealth ELSS via SIP Build long-term wealth SIP in equity funds No lock-in, flexible access SIP in open-ended mutual funds Conservative growth SIP in debt or hybrid funds If you’d like, I can recommend the best ELSS funds or SIP plans based on your risk tolerance and goals.

What Is an ELSS Fund? ELSS (Equity Linked Savings Scheme) is a type of mutual fund that primarily invests in equity markets and offers Section 80C tax benefits up to ₹1.5 lakh per financial year. It’s the only type of mutual fund eligible for tax deductions under Section 80C.  Lock-in Period: 3 Years  What Does Lock-In Mean? The lock-in period refers to the minimum holding period during which you cannot redeem or switch your investment. Duration: 3 years (from the individual date of investment) Applicable To: Every SIP or lumpsum investment in ELSS After 3 Years: You can redeem the units anytime  SIP in ELSS? Each SIP Installment Has Its Own Lock-In If you start a monthly SIP in an ELSS fund: Each installment is locked for 3 years from its investment date For example: Jan 2022 SIP → Redeemable after Jan 2025 Feb 2022 SIP → Redeemable after Feb 2025 So, you can’t withdraw the entire investment after 3 years of starting the SIP, only the earliest installments.  Why ELSS Is Still Worth It Despite the Lock-In: Benefit Why It Matters  Shortest Lock-In Just 3 years (vs. 5 years for tax-saving FDs, 15 for PPF, etc.)  Market-Linked Returns Potential to earn 12–15% annually over long term  80C Tax Benefit Save up to ₹46,800 in taxes/year (if in 30% bracket)  Wealth Creation + Tax Saving Dual benefit unmatched by most other 80C options  How EzyMoneyDeals Helps You Manage ELSS Lock-In Efficiently Feature How It Helps  ELSS Tracker Tracks each SIP/lumpsum with individual lock-in countdown  Smart Alerts Notifies you when specific investments complete their 3-year lock-in  Growth Dashboard See how your ELSS is performing and projected to grow  Auto-Redeem Option Option to schedule withdrawal post lock-in for rebalancing  Tax Summary View Easily track how much 80C benefit you’ve claimed each year  ELSS Advisory Get help choosing the best-performing ELSS funds  Quick FAQs on ELSS Lock-in Question Answer Can I withdraw before 3 years?  No, not allowed Does SIP have separate lock-ins?  Yes, each SIP has a 3-year lock-in Can I switch to another fund within 3 years?  No, switching = redeeming, which is locked Are ELSS returns taxable?  Gains above ₹1 lakh/year are taxed at 10% (LTCG)  Pro Tip: Use ELSS SIPs as a long-term wealth tool, not just for tax saving. The lock-in builds investing discipline and helps ride out short-term volatility.  

  NRI Investment in Indian Mutual Funds – Key Points Eligibility NRIs and Persons of Indian Origin (PIOs) are allowed to invest under FEMA (Foreign Exchange Management Act) guidelines. Investments must be made in Indian Rupees (INR). Account Requirement You must invest through either: NRE Account – Repatriable (can transfer money abroad) NRO Account – Non-repatriable (earnings stay in India) Choose NRE if you want to repatriate your gains abroad. Documentation Required Document Purpose PAN Card Mandatory for all investors Overseas address proof Required for KYC Passport + Visa Copy Identity and NRI status FATCA Declaration Mandatory under US tax laws (if applicable) Mode of Investment SIP (Systematic Investment Plan) Lump Sum Through: Online platforms Registered distributors Indian banks offering mutual fund services Taxation for NRIs Type of Fund Capital Gains Holding Tax Rate* Equity Funds Short-term (<1 yr) 15% Long-term (>1 yr) 12.5% (above ₹1.25 lakh gains/year) Debt Funds Short-term (<3 yrs) As per income tax slab Long-term (>3 yrs) 20% with indexation *TDS (Tax Deducted at Source) is applicable on gains before payout.  Special Note for NRIs in US/Canada: Few Indian AMCs allow investments from US/Canada-based NRIs due to FATCA compliance complexity. AMCs like SBI MF, L&T MF, UTI MF, ICICI Pru MF often allow it with extra paperwork.  Summary:  NRIs can invest in Indian mutual funds.  Need NRE/NRO account.  Must complete KYC & FATCA.  Can repatriate funds from NRE.  Subject to TDS & capital gains tax.