How to invest in mutual funds?

imgJanuary 4, 2021
img10 minutes
img Mutual Fund

Thanks to the online mode and the increasing penetration of the internet, online investments have become a breeze. The same goes for mutual fund investments. You can invest in a desired mutual fund scheme online through your computer and even through your Smartphone.

Ways of investing in Mutual Fund 

There are two ways of investing in Mutual Funds -

Recurring monthly basis investment popularly known as SIP ( Systematic Investment Plan). It is similar to the recurring deposit investment where a fixed amount of money gets invested at regular intervals, on a pre-decided date and for a selected period of time. For example, if you choose to invest Rs.5000 on the 10th day of every month, this would constitute a SIP investment.

One time or Lump sum investment - means investing in one lump sum at any point of time. Lump sum investments are suitable for those who have a considerable corpus at hand and want to invest one time. Lump sum investments also give better returns compared to SIPs over the same period of time.

SIPs are better if you want to invest small amounts regularly. With SIPs, you get the benefit of rupee-cost averaging. Moreover, you don’t have to time the market to pick the right time to invest. Your investments are automated and you can save in a disciplined manner when you choose SIPs. SIPs are, therefore, convenient, regular and a disciplined way to save to create a corpus for your financial goals.

How to pick the right Mutual Fund category to invest? 

Selecting the right fund would depend upon three key personal situations of individuals - Financial goals Risk appetite and Investment horizon

Based on your horizons for the investment, you need to opt for the funds accordingly. If you have a high tenure of investment, you can opt for a higher risk fund as the risk gets distributed over the entire tenure. On the other hand, lower tenure for investment would entail you to opt for safer fund options with lesser degree of risk.

This is just a basic suggestion purely based on the time horizon of investments. You can speak with your financial advisor or mutual fund distributor for a more specific & personalised investment solution. On a rolling return basis, the above category of recommended funds most often have never destroyed capital. On the contrary,investments if not prematurely withdrawn would most likely deliver good returns. So, if you are the do-it-yourself person or just have a very small amount to start with you can do it yourself.

How to start investing in a Mutual Fund? 

Investing in Mutual is simple. First time Mutual Fund investors will need to complete their KYC (Know Your Clients) formalities. This is a one-time activity and then you are free to invest across all funds with the same KYC. 
Complete your KYC. Fill up the Common Application Form (CAF)

To open the Mutual Fund Account you need to keep the following document ready. 1. PAN Card 2. Passport Size Photograph 3. Photo Id Proof 4. Address Proof 5. Cancelled Cheque Leaf. You are ready to invest.

Do you wish to simplify the process of investment further and get rid of the hassle of picking which fund is right for you? 

Investment simplified 1. Visit the website or download the Mobile Application (Android & IOS) 2. Start either with Quick SIP or with Goal Planning 3. Get the recommended funds that are best suited to your goal. 4. Complete the Online KYC & CAF online sitting in the comfort of your home. 5. Invest online. The transaction platform is SSL certified with 128 bank encryption (bank level security). 6. Track your investment progress online in the dashboard. 7. Or call us at 11 411-32789 for assistance

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