How to Invest in Mutual Funds Online
Akhilesh is a successful entrepreneur, and he has a thriving start-up that is doing quite well. Now that he has good money, he is searching for some suitable financial mechanisms to invest his money into. He suggested that mutual funds are a good option as it provides higher returns on minimal investments. But he also heard that mutual funds are hazardous. With many doubts in mind, he is still confused about how to invest in mutual funds online india.
If you, too, are someone who wants to sit back at home and learn how to invest in mutual funds online, keep reading this blog post.
What are Mutual Funds?
It is a kind of financial vehicle or investment in which money is collected from different investors, be it individuals or groups, and then used to invest in securities like stocks, bonds, money market instruments, and other assets. Money managers manage these investments professionally who try their best to produce capital gains on the funds invested. They also try to ensure that the invested money doesn’t get lost.
It has become easy to invest in mutual funds by learning how to start investing in mutual funds online.
How to start investing in mutual funds online?
Looking for the answer to how to invest in mutual funds online india, there are two ways through which one can do that-
- Through the official website and
- Through an app.
Let us see how to invest in mutual funds online through these two ways.
By creating an account on an official website
For investing in mutual funds, you have to contact an AMC or asset management company. By the name of it, you must have understood that they are the ones who will be your money managers. Every asset management company has an official website of its own. You can open up this website to surf through multiple funds for each category. When you open up the site, it is pretty much self-explanatory and easy to navigate. All you have to do is follow the instructions correctly while filling out the form and fill in everything required. Make sure to check your credentials twice before proceeding ahead. KYC is needed in online investment. For that, you can either use your Aadhar Card or Pan Card or both if required. All the information you provide is verified at the backend, and when your successful verification is done, you can start investing.
Through an app
When the question of how to start investing in mutual funds online arises, we can think of using our smartphones. Many asset management companies have made investing in mutual funds online easy and hassle-free by setting up mobile applications. These applications are straightforward and quick to access and navigate. You will also find third-party mutual fund aggregators who provide an online platform for investing in mutual funds. The app helps the investor have all investment-related information on the tip of her/his finger. The investor can see mutual fund schemes, account statements, buy or sell units and check other relevant details of their portfolio via these apps.
How to Invest in Mutual Funds in detail
Now that you have learned how to invest in mutual funds online, let’s look at some points to keep in mind while choosing an investment plan.
Identify your purpose
It is a crucial point to consider before starting to invest, as this will help you choose the plan or schemes that will cater to your needs in the best way. Your investment goal can be anything- buying a house, education, marriage, retirement, etc. If you don’t have a defined goal, you should be clear about the amount of wealth you want to accumulate from your investment.
Fulfil the KYC requirements
KYC, which stands for know your customer, is an integral part of the investing procedure. The investors must comply with the KYC guidelines to start investing. KYC can be done by generating proof of residence, age proof, PAN card, etc.
Know about the available schemes
The mutual fund’s investment market is flooded with various schemes and plans to choose from. Every investor has different needs, and these oceans of options can cater to them. It is essential to do your research well before investing in any scheme or choosing any asset management company.
Check for the risk factors.
Investing in mutual funds is risky. Greater the returns, the greater the risks. If you can bear such risks, only go for schemes with higher risks.
With technology becoming more accessible and phones becoming smarter, you can learn how to invest in mutual funds online india. You can access the online investment option through AMC’s website pr mobile application. Fill out the necessary details, choose your plan wisely, complete your KYC, and after verification, you can start investing. It is as easy as said above, so start investing today!