Short-term capital gains on equity mutual funds are taxed at 15%, whereas long-term capital gains up to Rs 1 lakh are exempted from taxation. Long term capital gains exceeding Rs 1 lakh are taxed at 10%.

Although one can invest any amount in index funds as specified by the provider, one can start investing in NIFTY 50 index funds for as low as Rs 500 via SIP.

Systematic Investment Plan (SIP) is an investment route for mutual funds with which you can invest in a disciplined manner. It allows you to invest a fixed amount based on your choice.