What is a mutual fund?
A mutual fund pools money from many investors and a professional fund manager invests it in a basket of stocks, bonds or other assets, following the fund’s objective. You own units of the fund, and their value (the NAV) moves with the underlying holdings — giving you instant diversification even with a small amount.
Main types of funds
Matching the type to your goal matters more than chasing last year’s top performer.
| Type | Invests in | Typical horizon |
|---|---|---|
| Equity funds | Stocks across market caps | 5+ years |
| Debt funds | Bonds & money-market instruments | Months to a few years |
| Hybrid funds | A mix of equity and debt | 3+ years |
| ELSS (tax-saving) | Equity, 3-year lock-in | 3+ years |
Direct vs regular plans
Every scheme has two variants. A regular plan pays a distributor commission from the fund every year; a direct plan does not, so it has a lower expense ratio and compounds into a larger corpus over time. ROAR offers zero-commission direct plans only.
SIP vs lumpsum
A SIP invests a fixed amount monthly, averaging your cost and building discipline — ideal for salaried investors. A lumpsum invests a larger amount at once, suited to surplus capital and a long horizon. Many investors use both. Try the SIP calculator to project a goal.
How to start
Open a free account, complete KYC, pick a fund that matches your goal and risk appetite, and set up a SIP from as little as ₹100 a month. Review periodically rather than reacting to every market move.
Frequently asked questions
Are mutual funds safe?
Mutual funds are subject to market risk and returns are not guaranteed, but diversified funds spread risk across many holdings. Always read the scheme documents and match the fund to your horizon.
What is a direct mutual fund?
A direct plan is bought without a distributor, so it carries no commission — meaning a lower expense ratio and better long-term returns than a regular plan.
How much do I need to start?
You can start a SIP from as little as ₹100 a month on ROAR, in zero-commission direct plans.
What is NAV?
Net Asset Value is the per-unit price of a fund, calculated at the end of each trading day from the value of its holdings.