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Here Is How To Invest In Mutual Funds

Adhil Shetty
Image source: Freepik

Q. I want to start investing in mutual funds. Can You please tell me what is the procedure to invest in mutual funds?

A. A Mutual Fund is a professionally managed portfolio of stocks/bonds which is not only convenient but also affordable for the retail customers. Moreover, it is one of those investment vehicles that are effective in coping with inflation while growing your wealth over a period of time.

To begin investing, you need to complete the KYC process for which you would need a photograph, your proof of identity such as Aadhaar, passport, voter ID card or driving license and a valid address proof along with a duly filled KYC application form. Submit the documents to the authorised entity or to the intermediary through which you want to invest in the mutual fund. You can also complete the KYC process online by visiting KRA’s official website and registering the requisite details. Once your KYC is complete, you can invest in the mutual fund using the following channels:

– Through a distributor such as a broker or a bank

– Using online apps of mutual fund AMC or a distributor

– Through AMC directly by visiting their office

If you invest through a distributor, then you would be required to pay some commission on the transaction, but if you invest directly through the AMC, then there are no brokerage charges.

You can invest in the mutual fund through SIP or lump sum mode. The process is very simple and safe. If you are investing in mutual fund SIP online, then you would need to activate your net banking.

You could visit Mutual Funds | Best Investment Online – Mutual Fund to get an overview and start investing!

Though, if you are unsure when it comes to online, then it’s best to visit your selected mutual fund’s office or the bank at least once and understand the process personally and then make your final decision.

Have a question on personal finance? Ping me on Twitter at @adhilshetty with the hashtag #AskAdhil