FAQs

• What is the minimum amount needed to invest in a lump sum?

  The minimum amount required to invest in a lump sum may vary depending on the mutual fund scheme. However, it usually starts from Rs. 5000.

• Can I invest in a lump sum without a demat account?

  Yes, you can invest in a lump sum without a demat account. You can directly invest in mutual fund schemes through the fund house's website or through a registered mutual fund distributor.

• What are the tax implications of investing in a lump sum?

  The tax implications of investing in a lump sum depend on the type of mutual fund scheme and the holding period. For equity mutual funds, long-term capital gains (LTCG) tax of 10% is applicable on gains exceeding Rs. 1 lakh in a financial year. For debt mutual funds, LTCG tax of 20% with indexation benefit is applicable on gains made after three years of investment. Additionally, short-term capital gains (STCG) tax is applicable on gains made within three years of investment at the individual's applicable income tax slab rate.