slciconference
  • Home
  • Business
  • Debt
  • Finance
  • Insurance
  • Investment
  • Loans
slciconference
  • Home
  • Business
  • Debt
  • Finance
  • Insurance
  • Investment
  • Loans
Business,

Mutual fund investments: How to Invest in Mutual funds?

by Leandro MontoyaFebruary 3, 2020no comment
0
Shares
Share on FacebookShare on Twitter

Mutual fund investments might seem complicated to first-time investors. Regardless, understanding how mutual funds work is the first step in your investment journey.

Table of Contents

  • How to invest in mutual funds?
    • Identify the objective of investing
    • Duly fill the KYC (know your customer) form
    • Read up on all the available options
    • Consider the risk

How to invest in mutual funds?

Adhering to the following points will aid you in choosing the right mutual fund for your portfolio and accumulate wealth over time:

  1. Identify the objective of investing

    You need to start by defining your financial goals. This is the primary and most significant step towards investing in mutual funds. These can be buying a new car or a house, saving for your child’s education or marriage, planning an international holiday, retirement, etc. Identifying your investment objective would also help zero in on the mutual fund investment options based on factors like the level of risk, lock-in period, payment period, etc.

  2. Duly fill the KYC (know your customer) form

    If you wish to invest in a mutual fund scheme, you need to comply with the KYC guidelines. These include submitting copies of the PAN (permanent account number) card, age proof, proof of residency, etc., as specified by the mutual fund house.

  3. Read up on all the available options

    The mutual fund market is literally swamped with options and there are schemes to suit the needs of all investors. An investor is advised to do his/her homework by exploring the market and understanding the different types of schemes available. The mutual fund you choose should be aligned with your investment objective, investment horizon, risk appetite, affordability, etc. You can also consider seeking the help of a financial advisor if you want to invest in mutual funds online in a hassle-free manner. These financial advisors will ensure that you fetch maximum returns on your investments.

  4. Consider the risk

    You should be wary about the risks associated with mutual fund investment. Equity schemes are associated with higher risk compared to other securities. If you do not have a high risk appetite, you should consider investing in debt funds.

You can invest in mutual funds via the lumpsum or SIP (Systematic Investment Plan) mode. While both avenues are widely popular among investors, the latter has the upper hand as SIP investments can be afforded by everyone.

Under the SIP method, an individual contributes a fixed amount periodically over an investment tenure. The minimum SIP amount is Rs500. An individual can use a SIP calculator to identify the amount of money required to invest in their desired mutual funds. For e.g., you can invest Rs1,000 per month in XYZ mutual fund. Each month, on a date predetermined by you, this amount will be debited from your bank account and credited to your desired mutual fund account. This will then be further parked in the various instruments that form your portfolio.

SIPs help achieve your long-term financial goals. Hence, it is always advised to align your portfolio with your SIP investment strategy as it results in better execution of your financial goals. Happy investing!

Previous

How the stock market increases the value for shares?

January 25, 2020
Next

How to learn investment tactics in China?

February 12, 2020

Leave a Reply Cancel reply

You must be logged in to post a comment.

Related posts

Website Longer
Business,

How to Keep Consumers on Your Website Longer?

by Leandro Montoya1 week agono comment
employee hr background check
Business,

Things to Know About Background Checks

by Leandro Montoya1 month agono comment
Being Happy at Work
Business,

Benefits to Being Happy at Work

by slciconference2 months agono comment
Workplace Panic Buttons
Business,

Workplace Panic Buttons – Why Have Them At Your Place Of Business?

by Leandro Montoya3 months agono comment

Find Us on Facebook

Loan

  • 5 Things to Know About Interest on Hard Money Loans

    5 Things to Know About Interest on Hard Money Loans

    5 months ago
  • Home Forms For Hard Money Loans

    Home Forms For Hard Money Loans

    7 months ago
  • The Many Benefits of Getting Short-Term Loans

    The Many Benefits of Getting Short-Term Loans

    January 3, 2020
  • Top 5 Questions to Ask When Interviewing a Loan Broker

    Top 5 Questions to Ask When Interviewing a Loan Broker

    June 24, 2019
  • Why the interest rate matters in your loan

    Why the interest rate matters in your loan

    June 24, 2019
  • Loan Broker: 7 Reasons Why You Should Use One

    Loan Broker: 7 Reasons Why You Should Use One

    June 24, 2019
  • Options for Various Personal Loans for the Borrowers

    Options for Various Personal Loans for the Borrowers

    June 24, 2019
  • 5 things to consider when applying for a home loan

    5 things to consider when applying for a home loan

    June 24, 2019
  • Florida FHA / VA Loans

    Florida FHA / VA Loans

    June 24, 2019
  • How to Take Care of your Finances while Taking Car Title Loans

    How to Take Care of your Finances while Taking Car Title Loans

    June 24, 2019
  • Email Us

© 2019 - slciconference.com