How to invest in Mutual Funds

Hi, are you new to mutual fund investment? or searching for how to invest in Mutual Fund?, then this article for you to know about how to invest in Mutual Funds. Here are some basics ideas stock, securities market and mutual funds.

What is Stocks?

Stocks is an equity share of the company. If you buy a share of ITC or Tata Motors in Securities Market, then you are the owner of that share of that company.

What is Securities Market?

It is place where companies can raise fund by issuing securities such as equity share, debt securities, etc. to the public and also is a place public can buy or sell various securities. Once the shares are issued to the public, the company is required to list the shares on the stock exchanges – National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

What is Mutual Fund? 

Mutual Funds are type of financial instrument made up of a pool  of money collected from public and invests that money in securities such as stocks, bonds, and other assets.

What are the types of Mutual Funds?

  1. Equity Fund
  2. Debt Fund
  3. Hybrid Fund
  4. Solution Oriented Fund
  5. Index Fund
  6. Fund of Funds

Check the article for What is Mutual Fund and its types for more details. 

What is AMC?

Asset Management Company is a money management firm of your investment with investment objectives, handled the day to day operation and investment decision by Fund Management and professional research team. The function of managing asset(your investment) on behalf of an investor and get fee for management cost from you. Example:SBI Mutual Fund, UTI Mutual Fund, HDFC Mutual 

Retail Investor

Retail investor or individual investor (You) is a non professional investor who buy Mutual Fund, Stock, Debt Bonds, etc. through traditional or online brokerage firms. 

Funds

AMCs introduced new Mutual fund based on Benchmark, Sector, strategy, etc.

Example:

UTI Nifty Index Fund, Edelweiss US Technology Equity Fund of Fund Direct Growth 

AMCs Online and Mobile Application

Every AMCs having own its online and Mobile application for public to subscribe theirs funds and also AMCs not able to launch the new fund in same category if already launched or exists.  

Online Brokerage Platform

The Investor needs to analyze the funds in the same category, performance from various AMCs and invest the money. So we need one platform to subscribe to fund from various AMCs. We have lots of online/mobile applications like PayTM MoneyGroww, etc. That online/app platform is an intermediate between investor and AMCs. The investor can sign up with any platform with Paperless KYC verification. It is maintaining a portfolio that amounts invested by investor and his units holding with various mutual funds. 

e-KYC Submission

Open the Mutual Fund investment within few minutes by e-KYC Submission form in Mobile Application, Enter mandatory details and  upload the document below.

  1. Basic details about you
  2. Bank detail
  3. Nominee detail
  4. Photo/Take Selfie
  5. Aadhar Card
  6. PAN Card
  7. Video KYC (PayTM Money)-  Video Record option available and just say “I am Ramkumar and here to open mutual fund account in PayTM Money”

That’s it. You are ready to invest in Mutual Funds

No Charges

There is no charges for Mutual Fund investment in any application.

Conclusion

I hope that you able to understand how to invest in mutual fund, easy to sign up in application for Mutual Investment and start saving.

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