Investor Knowledge Base

Frequently Asked Financial Questions

1. What is the difference between Direct and Regular Mutual Funds?

Direct plans are purchased directly from AMC without distributor assistance, while Regular plans include dedicated advisory, documentation support, continuous portfolio rebalancing, and claim assistance from an AMFI-registered distributor like Aam Investor.

2. How is Mutual Fund capital gain taxed in India?

For Equity funds, Long-Term Capital Gains (LTCG) over ₹1.25 Lakh per financial year are taxed at 12.5%, while Short-Term Capital Gains (STCG) on holding under 1 year are taxed at 20%.

3. Can I stop or pause my SIP anytime?

Yes, SIPs are completely flexible. You can pause, increase, decrease, or stop your SIP anytime with zero penalty.