Being financially independent is a goal all individuals work towards. Being financially stable and independent helps an individual to boost their morale and feel more responsible. One way to achieve financial independence is by creating a source of passive income for self or by investing in instruments that aid in wealth creation. Mutual fund investments can essentially help you with the same. Whether you are planning to invest in mutual funds to cater to your capital appreciation needs, or wealth preservation needs, or tax-saving needs, there is a mutual fund available to you that can fulfil all your investment needs. In this article, we will provide a comprehensive step-by-step guide to invest in mutual funds.
How to invest in mutual funds?
For starters, you must be well complacent with the idea that there are different types of mutual funds available to investors that can help investors achieve their personal financial goals. Before you choose the best mutual fund investment plan for your portfolio, you must ensure that you have done proper due diligence and research. If you are facing difficulties at any point, you may contact a financial advisor or a mutual fund expert who can help you give a proper financial advice and counsel. Next, you as an investor must know that you can either directly invest in mutual funds or invest in mutual funds online from any part of the world, plus the added comfort of your couch.
If you wish to go ahead with the offline mode of investing in mutual funds, you’d be required to submit a duly filled form along with a copy of a bank draft or a cancelled cheque. An investor has the choice to send these documents to either the designated Investor Services Centres (ISC) designated Registrar and Transfer Agents (RTA) or directly to the branch office of the scheme.
As mentioned above, one of the methods to invest in mutual funds comprises of submitting a duly filled buying form along with a cancelled cheque or a bank draft. An investor has the option to either send these documents to the designated Investor Services Centres (ISC) or designated Registrar and Transfer Agents (RTA) or directly to the branch offices. These methods are the offline way of investing your money in mutual fund investments.
However, if you prefer the comfort of your home over long queues, then you might consider opting for the online mode of investing in mutual funds. One of the ways of investing in mutual funds online require an investor to involve a financial intermediate such as mutual fund distributors, brokers, individual agents, distribution companies, etc. These financial intermediaries are registered with the Indian markets’ regulator and administrator – AMFI (Association of Mutual Funds in India). An investor can also choose to invest in mutual funds online through mutual fund broking houses or AMCs (asset management company) or fund houses. Another way of investing in mutual funds is by directly investing in the preferred schemes through a third party or directly through their website or apps. This way of investing in mutual funds online allows investors to take their matters (in this case their financial health) in their own hands. So, what way will you adopt to invest in mutual funds? The offline mode of investing or the online mode of investing? Irrespective of the mode you decide to choose, make sure to ensure that you select the best mutual fund investment plans for your portfolio. Happy investing!