3 questions on mutual fund?

hi,
i am from india.
suppose, I want to invest Rs 10,000 in a mutual fund(open ended)

Q1. does all open ended mutual fund gives tax benefit ?

Q2. if i see the NAV of my mutual fund decreasing, should i reedeem it or should i wait for its uprise ?

Q3: say in this year, i invested rs 10,000 in a open ended mutual fund and before the end of the year i reedeem it, will i get the tax benefit ?

A1:No, only ELSS/ tax-saving schemes give tax benefit.ex: Tata tax advantage fund(recently launched).

A2:It depends on your risk taking potential and the time frame you have in mind. If your fund has performed badly compared to similar schemes floated by other funds, the best idea will be to redeem and switch to a best performing fund.

A3: You have to hold a fund for atleast one year to avoid capital gains tax.Presently the tax rate is 10% on profit.

I give bank numbers, you put money in, I save for you long time.

Seek a fiance adviser you pay taxes if you spend them. for the Nav let sit. no tax benefits. send question to Suzy Orman

Last night I watched the Suze Ormon Show(ex stock-broker)and it was about mutual funds. I personally don't have any...yet.I learned to stay away from A,B and C shares.Partake in NO LOAD FUNDS.A good firm to check out is sharebuilders.com American Funds are supurb!Look into T. Rowe Price Equity Income and T.Rowe Price Equity Growth.Don't buy M.F.'s at the end of the year!There was also a financial advisor on M.F.'s on the show.Her name is Christine Benz.She has a book out about investing in M.F.'s,but I forgot to write down the title.Research her name,I'm sure info will be there.