Topic 3: New to Mutual Funds? Here is how you can start investing in MFs
If you are new to mutual funds and want to invest in a fund, then you should go for a scheme based on your investment objectives and risk tolerance. Depending on your convenience, you can invest in a mutual fund offline.
Investing offline in a direct mutual fund scheme can be done by visiting the branch of the fund house, or in a regular plan through a mutual fund agent/distributor. You can get your KYC completed at a KYC Registration Agency (KRA) before investing in mutual funds.
Most suggested by industry experts is investing in mutual fund schemes through a systematic investment plan (SIP), the best option for beginners. Through the SIP method of investing in a mutual fund, you will be able to invest a fixed amount regularly in a mutual fund scheme of your choice. You can invest as low as Rs 500 per month through the SIP in any mutual fund scheme.
Investing in mutual funds through Demat account
You can also invest in mutual funds through a Demat account through any depository participant or with your stockbroker. With a Demat account, the mutual fund units are held in the dematerialised form, which can be bought or sold through the Demat account just like shares. The Demat account can hold stocks, mutual funds along with other securities.
With a Demat and trading account, you can buy and sell units of mutual fund schemes. However, note that there are charges which are higher as compared to other modes of investing in mutual funds.
Investing offline in a direct mutual fund scheme can be done by visiting the branch of the fund house, or in a regular plan through a mutual fund agent/distributor. You can get your KYC completed at a KYC Registration Agency (KRA) before investing in mutual funds.
Most suggested by industry experts is investing in mutual fund schemes through a systematic investment plan (SIP), the best option for beginners. Through the SIP method of investing in a mutual fund, you will be able to invest a fixed amount regularly in a mutual fund scheme of your choice. You can invest as low as Rs 500 per month through the SIP in any mutual fund scheme.
Investing in mutual funds through Demat account
You can also invest in mutual funds through a Demat account through any depository participant or with your stockbroker. With a Demat account, the mutual fund units are held in the dematerialised form, which can be bought or sold through the Demat account just like shares. The Demat account can hold stocks, mutual funds along with other securities.
With a Demat and trading account, you can buy and sell units of mutual fund schemes. However, note that there are charges which are higher as compared to other modes of investing in mutual funds.