Mutual funds are perhaps the most flexible investment vehicles that you can add to your arsenal. You can use them to create a sizeable corpus in the long run or to meet financial responsibilities that crop up on a regular basis. Thanks to professional fund managers who invest your money in the right assets, reallocate it according to the market conditions and offer analysis to help you make the most of your money, mutual funds serve as an excellent way to invest in market-linked securities while curtailing your risk.
If you’re looking to dip your toes in the world of mutual funds, take a look at three ways in which you can invest.
Through Mutual Funds Mobile Applications
To make it as easy and convenient as possible, most fund houses accept investments through mobile applications. To start investing via this method, install the financial institution’s mutual fund app on your mobile phone and register yourself. Next, select an ideal mutual fund scheme and start investing. Apart from this you can also buy and sell units as you wish to and access all the details of your portfolio through this single mobile application. Note that some applications allow you to access all your mutual fund investments, while others display investment activities only relating to their schemes.
Through Online Aggregators
You can also invest through online aggregators who allow you to compare various mutual funds offered by different fund houses. In order to invest through online aggregators you must create an account on the platform, fill out an online application form, take a print out, sign it, and send the hard copy along with the requisite documents. Once your paperwork is processed, you can start investing in mutual funds that the aggregator lists. Apart from giving you access to mutual funds, these websites also offer a lot of information to you, be it on tax-treatment, the best way to select a mutual fund and the latest news on this instrument.
Through A Broker
If you are of the opinion that you need someone to guide you through the process more closely, this is the best option for you. For a fee, you can hire a broker who will help you choose the right mutual fund, understand the intricacies of the system and also take you through the documents that you need to submit. The broker or agent’s fee is deducted from the investment amount and while this is an excellent option if you have lots of questions and aren’t sure of your judgment, do check the agent’s credentials before signing up.
To smoothen this process and make it more secure, the Securities and Exchange Board of India is in the process of appointing an SRO or Self-Regulatory Organisation. Through tests for distributors or brokers the SRO aims to make brokers more skilled. The organisation has also been set up with the express aim of curbing malpractices.
Depending on how confident you are in your abilities, you can choose from one of these 3 methods and make the most of what mutual funds have to offer.
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