So you have finally decided to take your financial investment seriously. Congratulations, you are halfway through! Now comes the important part though, finding the right plans and options to invest in.
If you haven’t yet here are key tips to help you invest in mutual funds.
Quick tips to help you invest right
- Understand your risk appetite as it will help you invest in the right options without having to lose your hard-earned money.
- The next essential step is asset allocation. According to your financial goals and risk appetite divide your investment among different asset classes. Find a perfect balance of both equity and debt funds to balance out the risk.
- Identify and compare the mutual funds that invest in the asset class you are interested in.
- Once you have decided on the mutual funds to invest in apply online or offline. Also, decide whether you should pay the lump sum or opt for SIP.
Ways to invest in mutual funds
Once you choose the mutual funds to invest in here are the popular ways you can complete the investment process.
- Direct offline investment with the fund house
You can visit the nearest branch of the fund house and invest in your desirable schemes. Just make sure you carry these documents with you.
- Identity and address proof
- Canceled cheque leaf
- Passport size photograph
You will need to fill the application form provided by the fund house and submit it along with the documents.
- Online through the official website
The easiest way to invest in mutual fund schemes is through the official website of the fund house. All you need to do is visit the official website, choose the scheme you want to invest in, fill in the relevant information, and submit.
You can complete the KYC process online itself. You can also set the SIP online. In case you face any issue you can directly call the customer care. The online process of investing in mutual funds is the easiest and quickest way that most investors prefer.
- Through an app
Major fund houses have launched their own mobile apps for the customers’ convenience. The app allows investors to use various features including invest in schemes, buy or sell units, view account statements, and other details regarding your portfolio.
Some of the apps like myCAMS and Karvy even allow you to invest as well as access the details of your multiple investments from different fund houses through one app.
Whatever the way you choose to invest in, make sure you invest right. Starting early and investing through SIP will help you get the most benefit of the power of compounding and build future wealth to achieve your financial goals over time.