I am first time investor in mutual funds.
I have some basic doubts, please clarify
1) Regarding exit load, what is exit load and how does it apply? e.g suppose I do a sip of Rs xxx in ABC fund for 10 yrs, now if I want redemption before 10 yrs, say 8 yrs will then exit load be applicable?
2) Regarding increase in sip amount
How to increase sip amount and how often can I increase it?
3) Regarding portfolios
Portfolio no. A – in large cap 2000 for 10 yrs
Portfolio no. B – in large cap 2000 for 15 yrs
Should I invest 4000 in one fund or 2000 separately in two different funds. Along with that can I invest 2000 each under two different folio numbers in the same fund?
4) Regarding STP
What is stp and where it is applicable and any charges associated with that?
5) should I invest now or wait for this tsunami of 500 &1000 notes to pass by?
Kindly address my doubts
Vikram 1) Exit load is something which they charge if according to pre-defined period you not hold your MF investment. Each fund type of fund have different set of exit load rules. Hence, you must read the exit load before investing. Usually, exit load applies to less than a year redemption for equity funds. So better you understand the load tenure and how much % before investing.
2) To increase a SIP amount, you have to register a new SIP under same folio. You can do as many times as you wish.
3) Each portfolio first must have debt:equity ratio based on the time horizon. Again in equity, you must have all market cap funds only large cap is not enough.
4) STP stands for Systematic Transfer Plan.
5) If you are long term investor, then such Tsunami will not matter much as these are part and parcel of equity market.