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FAQs about mutual funds in general

Do you have questions about mutual funds? To make investing easier for you, we have put together a list of the questions asked most frequently by our customers.

Are returns guaranteed?

No. Mutual funds have no guaranteed returns. The course of your investment depends on the course of the markets in which your mutual fund(s) of choice is invested.

However, you may limit investment risk by applying key investment principles:

Diversify across different investment categories (equities, bonds, cash).
Diversify across geographical locations.
Diversify across time.

Is there any risk of capital loss?

Yes. Mutual funds follow the course of the markets. If markets exhibit downward trends, it is possible that mutual funds could have negative yields.

What if I change my mind after investing?

You may redeem your units at any time.

The money you invest in mutual funds is still available to you; the net redemption amount, i.e., the value of your investment minus any redemption fees, is credited to your bank account.

Will I have to pay taxes on mutual funds?

No. According to the applicable law, the capital you invest in mutual funds and any capital gains are both exempt from tax.

However, you should ask your accountant to find out what applies to you.