How To Invest In Mutual Funds

Several investors – old or new are attracted to mutual fund investments due to the several benefits it offers to them. However, irrespective of their high demand and popularity among retail investors, several investors are unable to invest in mutual funds. Why? Well, they aren’t quite sure about the investment process. If you are one such investor, we have got your back. In this article we will understand the different ways in which you can invest in mutual funds.

How to invest in mutual funds?

If you have made up your mind to invest your hard-earned savings in mutual fund investments, then here’s how you can invest in these investment vehicles. Firstly, you must be well-versed with the fact that just like there are different types of mutual funds for an investor to choose from, there are different ways to invest in mutual funds as well. Before you begin your mutual fund investment journey, you must ensure that you do proper research and choose the right type of investments for your investment portfolio. A financial expert or an advisor can help you with the same if you are stuck at any point in the investment path. You can either invest in mutual funds online from the comfort of your home or by filling out the acquisition forms. An investor can invest as low as Rs 100 per month in mutual funds. However, one must note that certain AMCs (asset management company) or fund houses may require an investor to invest a higher amount. 

As mentioned above, one of the methods to invest in mutual funds comprises of submitting a duly filled buying form along with a cancelled cheque or a bank draft. An investor has the option to either send these documents to either the designated Investor Services Centres (ISC). branch offices or designated Registrar and Transfer Agents (RTA). These methods are the offline way of investing your money in mutual fund investments.

The online method of investing in mutual funds involves taking help of a financial intermediate – a mutual fund distributor which is register with the Indian mutual funds’ regulator – AMFI (Association of Mutual Funds in India). One can also invest in mutual funds through fund houses or mutual fund broking firms. Other way to invest in mutual funds online is by directly investing in the desired mutual fund schemes through their respective websites or mobile applications. However, one must note that this means that they would be taking the investment matters in their own hands. 

Irrespective of the way you decide to invest in mutual funds – online or offline, you are bound to benefit from the several advantages of investing in mutual funds. Some popular benefits of investing in mutual funds include professional management offered to investors, potential to earn substantial returns, diversification of investment portfolio, certain tax benefits enjoyed by certain types of mutual funds, etc. Also, mutual fund investments are heavily regulated by the SEBI (Securities and Exchange Board of India) which makes it necessary for all mutual fund houses to follow the norms laid out by the SEBI. So what are you waiting for? Invest in mutual funds today to enjoy the benefits of mutual fund investments. Happy investing!