HOW TO INVEST IN A MUTUAL FUND: BASIC PROCESS !

HOW TO INVEST IN A MUTUAL FUND: BASIC PROCESS !
HOW TO INVEST IN A MUTUAL FUND: BASIC PROCESS !

Table of Contents

* First , What is a Mutual Fund ?
* There are several Ways to invest in a mutual fund :
* if you are the first investor .
  • Mutual funds are very complex products and it is very common to be more worried about the person who first invested.                                                                                                                                                                                                                                                               However, when you have a basic understanding of how mutual funds work, you can easily start your investment journey.

FIRST, WHAT IS A MUTUAL FUND?

Mutual fund is an investment plan that saves money from many investors under a special plan managed by an asset management company (AMC).

Then invest the money deposited in the equity stock or bond or other means as per the investment objective of the scheme.
That is to invest in a mutual fund, to achieve a return on purpose according to the objective.

What is Mutual Fund .

MUTUAL FUNDS ( MUTUAL FUND) THERE ARE SEVERAL WAYS TO INVEST IN:
  • Direct offline investment with fund house :                                                                                  You can invest in mutual fund schemes by going to the nearest branch office of the fund house. Just make sure that you take a copy of the documents given below - proof of address, proof of identity, canceled check, passport size photograph.                                                                                                                                                                                                                    The fund house will provide you an application, which you will need to fill and deposit with the necessary documents.                                                                                                                      
  • Offline investment through a broker : 
  • The mutual fund broker or distributor is the one who will help you in the whole process of investment. He will provide all the information you need to invest in, in which Features of various schemes, essential documents etc.                                                                                                                                                                                                                                                   are included. He will also guide which plans you should invest in. For this he will charge you. The deduction from the total investment amount will be deducted.                                                                                                                                  
  • Online through official website or an app :
  • These days most fund houses offer online investment in mutual funds. All you have to do is follow the instructions given on the official fund house, fill out the relevant information and submit it. The KYC process can also be completed online (e-KYC) for which you have to enter your base number and PAN.                                                                                                                                                                                                                                                                     The online process of investment in a mutual fund is easy, quick and hassle free and therefore, most investors are preferred.

IF YOU ARE THE FIRST INVESTOR

You should see the following strategies for making the right investment:

  • Target investment:                                                                                                                Defining your financial goals in terms of purpose, budget and tenure can take a long way. This can help you decide how much you can set differently for a mutual fund and find out the risk of your risk. Investment always works best with one purpose.                                                                
  • Choose the right fund type :                                                                                                          To make decisions on the appropriate mutual fund category, read more about mutual fund types. Experts generally recommend a balanced or debt fund for the first time investors because it gives you more returns than FD. Select the appropriate category of equity or debt according to risk capability.                                                                                                                                   
  • Diversify your portfolio :                                                                                                       Consider investing in more than one mutual fund (no more than 3). A portfolio of wealth will help you diversify into tools and investment styles. This will also reduce risks - when a fund underperforms, then another can save your entire portfolio down.                                                     
  • Go for a SIP instead of one-time investment :                                                                     Systematic Investment Plan (SIP) is better for beginners when investing in equity or equity-oriented funds. While one-time investment lets you leave the market, a SIP will spread your investment over time and at different market levels.        
    thanks for the time .

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