How to invest in Mutual Funds?
In India, you can also invest in mutual funds offline and even online. How to invest offline, Physical Investment In Mutual Funds. You can invest money in Mutual Funds through mutual fund distributors.
For this, you can search for AMFI Accredited distributor in your area. With these distributors, you can take a form to invest in a mutual fund and then you also help in filling out a form. Those who have KYC formalities, they will tell you and they will also give you information about the exact mutual fund scheme.
You can also get help with mutual fund distribution companies to invest in mutual funds. Generally, brokers who make all stock brokerages also work as mutual fund distributor.
Banks also have the facility of taking mutual fund schemes. However, they work only for their mutual fund companies.
You can also take a mutual fund scheme by going to the office of the direct mutual fund company. Through a mutual fund office, when you invest money in a mutual fund, it also gives you the benefit of ‘DIRECT’ investing.
How to invest online?
Online Investment in Mutual Funds
There are many platforms for making an online investment in mutual funds-
You can go to the website of the mutual fund companies and follow the online investment method. But first-time R. When you adopt this option, the company accepts the form of investment in KYC documents and mutual fund types and scheme as your own. In this way, you also get the advantages of DIRECT investing.
You can also invest online in mutual funds with the help of online mutual fund distributors working online. For example, fundsindia.com and fundupermart.com work in this area. These portals make your mutual fund investment a lot easier. But, through investing through these, you can not get the benefits of direct investing.
Apart from these, you can also invest in mutual funds through online distributors. For example, ICICIdirect, HDFC Securities, Kotak Securities etc. are working in this area. This method is particularly convenient for people whose business account is near these distributors. However, investing through online distributors is a bit costlier than other methods.
Systematic Investment Plan or “SIP”
Systematic Investment Plan (SIP)
Systematic investment plan or SIP is quite popular in ways to invest in mutual funds. A smart investor typically uses the SIP method to invest in ELSS. In a systematic investment plan, you invest a fixed amount on a regular interval. These intervals can be daily, weekly, weekly, fortnightly or monthly, depending on your convenience. Monthly SIP is best for employed employers who earn salaries.
Mutual fund companies also want people to invest through SIP, they get estimates of future investments. That’s why these companies allow small amounts to start SIP. You can start investing in SIP with a small amount of 500 rupees.
The best thing to do with joining SIP is that it puts you in the habit of investment. You do not need to re-evaluate the price of shares, returns etc. before investing every time. After a medium term or long term investment period, it gives you a better return. During the Investment Period, you may miss a High Return, but you do not have to deal with any major losses.
Note: There are plans to withdraw money regularly as a systematic investment plan. These are called systematic withdrawal plans.
Mutual Fund Returns
Mutual funds are operated by the skilled and trained fund manager and their team. You can expect better returns than these. A debt mutual fund generally gives better returns than bank fixed deposits and government bonds. Similarly, an equity mutual fund can also expect better returns than index funds. Similarly, a hybrid mutual fund generally gives better returns than debt mutual funds.
However, you can not judge the performance of any mutual fund based on its return only. Money security is also very important. Multi-fluctuating fluctuations of your investment portfolio are not cured. the roller coaster cannot ride.
An equity mutual fund is a superstar in that situation, while it performs better than its benchmark index. Giving a good return from the index in the bull run and lowering it in the recession.
Also, you can not decide on the performance of an equity mutual fund based on short-term performance. Investing in stocks is a long term game. Therefore, the performance of the mutual fund should also be assessed by 5 years.
If you wish, you can see past performance of any mutual fund for information on morningstar.in, moneycontrol.com and valueresearchonline.com etc.
Moreover information visit: https://en.wikipedia.org/wiki/Mutual_fund