How do I start investing in Mutual funds?

How do I start investing in Mutual funds?

Investing in mutual funds is a lot simpler now. One does not necessarily have go to the offices of Mutual fund houses. Most of them provide online investing facilities now. The first thing you need to do is to select the Mutual funds that you want to invest in. Assess the performance of a fund before making the final decision. Have a look at its net asset value, its past performance, the find managers track record, etc. and pick the ones according to your long-term investment targets. Upon choosing the funds contact the fund houses or the institution providing the facility to invest in the particular funds. To invest in Mutual funds one can either directly contact the Asset Management Company (AMC) or invest through the intermediary institutions. Further, there are two ways to invest in a fund. The first one is to invest in a lump sum. The second is to start a systematic investment plan (SIP). Here you need to deposit a particular amount every month. To complete the requisite process follow these steps.

  1. Register with the AMC or the intermediary by visiting either their office or their online platform. Most reputed institutions such as IIFL provide online facilities to start mutual fund investments. You can even start an SIP by following a few simple steps on their website or through their mobile app.

  2. The institutions will ask you for personal details such as name, date of birth, address, mobile number, email id, etc for completing the KYC process. Submit the address and identity proof, bank, and PAN details.

  3. Once the KYC process is complete after verification of documents you can set up the payment process. Pay the entire amount if you want to invest in a lump sum. For investing through SIP you can use both a post-dated cheque or auto-debit facility from your bank account. This completes the process and you are ready with your first mutual fund investment.