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What is the procedure to invest in mutual funds?

Yahoo, in association with Hansi Mehrotra, presents ‘#AskHansi’, a new series to help you understand how to invest smartly.

Before you get bogged down in the logistics of how you invest, you need to think a bit more about your goals. What are you trying to achieve? Are you saving for the short term, or are you accumulating some money for something in the medium term, like kids education and so on. Or are you investing just to build wealth over the long term?

Accordingly, you get to pick cash or liquid funds, balanced funds, or equity funds. So, that is what you need to focus on. Then maybe you can get some help to select the mutual funds… and that's where you decide whether you need the help of financial advisor or a mutual fund distributor or whether you can figure it out yourself, or simply invest in a passive fund or an ETF, in which case you do not need to go far. You can simply look to a whole bunch of apps that are available right now, or, or online, or go directly to the mutual funds site and buy them directly. You can also go to the stock exchanges… they nowadays also allow you to buy mutual funds, both active and passive. So that's the logistics side.

Hansi Mehrotra, a CFA with global experience and founder of The Money Hans, is a celebrity in the world of personal finance in India. A powerful influencer on in the corporate/banking/finance circles. She creates fine personal finance content that simplifies complex issues into easy-to-understand stuff which lay people can identify with.