Guide to Invest in Mutual Funds – Step by Step

Guide to Invest in Mutual Funds – Step by Step

You must have seen a lot of advertisements on TV for mutual funds, read a few articles here and there about investing in them, learned why they are better than other investment options,  and after some thinking, you must have finally decided to invest. Moving forward you must’ve saved some money, but realized that you really don’t know how to put this money in the mutual funds, don’t know if you need an investment account and if there are any other procedures,  don’t know what apps or websites to use or what plans to select for investment so that you don’t lose your hard-earned money. Don’t worry, we got you.

You can easily invest online using these steps:

First, install Scripbox, Groww or ETMONEY, any app out of the three that you prefer. Register on the app by providing the required details like name, phone number, email address, etc. Verify your phone number and email through OTP. Always protect the app with a password verification option or a fingerprint option, so that no one with access to your phone can open your investment app.

Now, register your bank details in the app – name, account number, and IFSC code. The app will save your bank account details. Then comes KYC, here you have to submit identity proof such as an Aadhar card and a PAN Card along with address proof such as a Passport/Driving License/Voter ID and a passport size photograph. You can upload the documents on the app but a much better option is having all your documents stored in Digilocker and then linking the Digilocker account to your investment app, it is a fast and easy method.

Now, you’ve set up the app and are all ready to invest. Remember to research, take risks into consideration and then put your money into plans. The factors to remember for mutual fund analysis are the fund’s past performance and the NAV, the trustworthiness of the fund house exit load, and tax implications. Apps also have a return calculator feature where you can type in your amount and duration of the investment to calculate the possible returns from that particular mutual fund. You have 2 options while investing – SIP or one-time payment. In case you choose SIP, you can enable the auto-pay feature and select a date, the amount will be automatically debited from the bank account. On the other hand, in one-time payment, you have to invest a lump sum amount. Select any option you see fit to your needs and transfer the money. The order will be confirmed and you’ll get the confirmation messages on SMS and email.

This was all for investing online in mutual funds. If you want to invest offline, then you have to visit the fund house of the mutual funds you want to invest in and carry out the further procedure.

Remember, investing is all about patience. Always research and read all the instructions carefully for secure investing.

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