Questions answered

A mutual fund is a pool of money collected from many investors, managed by a professional fund manager who invests it in stocks, bonds, or other securities based on the fund's stated objective. Investors receive units proportional to their investment, and the value of those units (NAV) fluctuates with the underlying portfolio's performance.

Most mutual funds allow SIP investments starting from ₹500 per month. For lumpsum investments, the minimum is typically ₹1,000–5,000 depending on the fund house. There's no upper limit to how much you can invest.

Mutual funds are regulated by SEBI (Securities and Exchange Board of India), which provides regulatory oversight. However, all investments carry market risk, meaning the value can go up or down. Debt funds carry lower risk; equity funds carry higher risk with potentially higher long-term returns. We always match fund selection to your risk profile.

As an AMFI-registered mutual fund distributor, Finverra earns trail commissions paid by the fund houses, based on the assets under our distribution. This is embedded in the fund's expense ratio and does not come out of your pocket separately. We always disclose our earnings on request — full transparency is a core principle.

Direct plans are bought directly from the AMC with no distributor commission, resulting in a lower expense ratio. Regular plans include a distributor commission, making the expense ratio slightly higher. However, a good advisor can add significant value — through fund selection, rebalancing, behavioral coaching, and tax optimisation — that far exceeds the cost difference.

It depends on your goal. For equity funds, a minimum horizon of 5–7 years is recommended to ride out market cycles. For debt funds, 1–3 years is typically appropriate. Longer time horizons exponentially increase the impact of compounding.

Your investments are held directly with the fund houses (AMCs) in your name. Finverra Capital is only a distributor — it does not hold or manage your money directly. Even if a distributor ceases operations, your investments remain intact and accessible through the AMC directly or via another distributor.

For most open-ended funds, yes — you can redeem your units on any business day at the current NAV. The money typically reaches your bank account within 1–3 business days. ELSS funds have a mandatory 3-year lock-in. Some debt funds may have exit loads for early withdrawal.