Wednesday, 20 March 2019

mutual funds to invest in

Man is very emotional when you are investing his earned money in the market. Trying to earn a better return in the future to achieve your financial goals. Bull Market has a great advantage when investing in the stock market. On the other hand, bear market investment has suffered huge losses. If you are a small investor, it is very difficult to survive in a recession. Therefore, the mutual fund helps in such situations. Mutual Funds combine the money of many small/big investors and manage money through the experts, researchers, analysts, such experts. The holders of all the fund units are benefited by their knowledge and experience. It is important to know how to invest in a Mutual Fund.

MUTUAL FUND TO   INVEST IN  How to invest in a mutual fund.
Now you have seen how the mutual fund works. Now you will see how and where to invest in a mutual fund for better returns.

What are the requirements for investing INVEST IN MUTUAL FUND?
Bank account
It is compulsory to have the name of a bank account in the name of the same person. Both MICR and IFSC are required. Both of these things are printed on a bank check.

How to KYC
According to SEBI regulations, all investors are obliged to do KYC. Documents with an application for KYC

Recent photo (Passport size)
ID card: - PAN card, Aadhar card, passport, voter identity card or driving permit license.
Address proof: - Telephone bill, electricity bill, gas bill / passbook, bank passbook, passport copy, etc.
All copies of the above documents should be photocopied and copied. (self attaested) and application must be accompanied by a standard document which can be displayed on demand. If there is no original document, it is necessary to make it true copy by the concerned officer. KYC status can be checked online on KYC registration agency website.

How to do e-KYC

Mutual fund application
For investing in a mutual fund, it is necessary to fill the application form of that scheme. If you are going to SIP for this scheme, you will have to fill out another payment related application. Only the parent can invest if you are investing in small children. There is a need to submit documents showing childhood relationships. Eg Birth certificate

Select a mutual fund option
There are 3 options to invest in a mutual fund. Growth, dividend, and dividend reinvestment. You have to choose one of these options.

Growth: You do not get a dividend in this option. Increasing investment leads to growth. The unit holder does not get anything. Increases in NAV of units. The difference between investment NAV and NAV at the time of sale is profit or loss.
Dividend income Dividend Payout: Income from investments is distributed through dividends. If there is a debt fund, then it receives a monthly, quarterly, half-yearly, or annual dividend. If there is an equity fund, then dividend returns when it is announced. Dividend yields only if the fund has the advantage.
Dividend Reinvestment: Instead of giving a dividend to the unit holders, units of that price are paid, which means the dividend is reinvested.
Where to buy a mutual fund.
Buying a mutual fund can be done in many ways. Online or offline, directly or in regular types of schemes.

Direct Plan: This fund can be purchased without any intermediary. These funds are available from 1st January 2013. Click here to know more about this.
Regular plan through an intermediary: Such types of investment are made through an intermediary. Banks, financial advisers, stockbroker companies or distribution companies play an intermediary role. All these arbitrators are registered with AMFI. All the things required for investment are mediator.
Directly investing in AMC: Going directly to AMC's office can be invested by completing other forms by filling in the form.
Investment Based on Website: Nowadays, most of all AMC's funds are sold online through some websites. These websites provide all kinds of facilities online.
Through Bank: Banks distribute all AMC funds around. You go directly to the bank and invest in a mutual fund.
By Demat Account: If you have a demat account, then you can invest in online mutual fund.

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