Investing in mutual funds is already convenient at your fingertips. They are easy to invest in instruments, they are flexible, and investors can even start with as little as Rs. 500 through the systematic investment plan method. There are also a few methods through which one could start investing in a mutual fund.
The various ways to invest in a mutual fund:
- By visiting the nearest branch office of the mutual fund, ISCs (Investor Service Centres), or RTAs (Registrar & Transfer Agents).
- Through a fund distributor who is registered with AMFI. The distributor can be either an individual, a bank, a broker, or more.
- Through online platforms or portals of the fund houses.
Since every investor’s preference and skill differ, there is no one-size-fits-all. But these methods can broadly be classified as - online and offline.
a) Online: The investor can open mutual fund accounts online through the portal of fund houses and online platforms.
b) Offline: Investors can also contact a mutual fund distributor or the closest Mutual Funds branch office to open an offline account.
We can explain the process of investing in a mutual fund in simple terms:
- Choose a platform or fund house.
- Register yourself on that chosen platform with your details.
- Complete the KYC.
- Choose the fund aligning with your goals, and further link your bank account.
- Initiate the investment by specifying the amount and choosing the investment mode.
- Transfer the funds, and you can start tracking your fund's performance.
The best way to invest in a mutual fund will depend on the investor's choice. For instance, a tech-savvy investor will choose to invest online.
Disclaimer
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
