Entering a Mutual Fund?

Entering a Mutual Fund?

Apart from the traditional options such as bank fixed deposits, PPF, postal savings, postal savings, mutual funds are currently being seen as a good alternative to investment. This type of general public is showing an increasing trend. However, many of them have not previously invested in mutual funds. So it is important to know what to look for when entering this investment environment.

Initial process

An interested investor is required to fill the KYC application form. A photograph, a copy of PAN card, proof of residence and citizenship certificate, bank account entries have to be given with this application. Besides, it is compulsory to submit the investment application to the Registrar or Fund House. Some funds also accept housing e-services. You can invest instantaneously in this medium.

The selection of the first scheme

When investing in a mutual fund for the first time, it is necessary for the investor to consider his age, objective, risk bearing ability, and how long he has to invest. Guidance on how much to invest your goals is available free on some websites. This objective can be determined using their calculators. Apart from this, financial consultation can also be taken for help. It is worthwhile to invest in various types of investment for a different duration of the investment. Debt or arbitrage funds are worthwhile if you want to invest for less than three years. Hybrid funds (this fund includes debt and equity) for a period of three to five years and it is advisable to choose a more risk fund for an equity mutual fund for a period of five to seven years.

Fund house

Financial help is essential for this. They give the advice to choose which fund to choose from. Before investing, it is important to check the performance of this scheme, track record of the fund house, the performance of its management. Fund managers have to check their recent performance.

Check out the history

Make sure that the future performance of the mutual fund scheme is not dependent on future performance or returns. However, take a quick look at how the performance of this plan was three, five and 10 years ago. Financial Advisor does say that too. It should be examined whether these schemes have given a minimum return during the three, five and 10 years period. If there is a good performance in these different phases, then there is no reason to be unsure about the fund house.

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