How To Invest In Mutual Funds Online?

Question: I have heard alot about Mutual Funds these days through TV Advertisements, but I’m not aware about how to invest in mutual funds online? I have 3 lakhs rupees in my savings bank account and I want to set aside this amount for my retirement, can you guide?

Answer: In India, the awareness for investing in mutual funds is increasing very rapidly, though India is very less penetrated towards mutual funds as compared to the other developing & developed countries there is a lot more to do to increase the awareness of mutual fund investing in India.

Mutual Funds are safe investment product because it’s regulated by the Securities and Exchange Board of India (SEBI). In India, many people think mutual funds are like those Ponzi schemes that will collect money and go away – It is NOT.

Mutual Funds are safe and all your investments are safeguarded with custodians. So, let’s move to your main question,

How To Invest In Mutual Funds Online?

You can follow this step by step guide to invest in mutual funds online,

1. Hire a Mutual Fund Advisor Online who have all the latest technology & tools to help you invest in mutual funds online or If you are confident to select your fund and manage your portfolio all by yourself then you can also go directly through various Mobile Applications that are providing online facility to invest in mutual funds.

2. To Start Investing in Mutual Funds Online you need to get your One-Time KYC done to Open Your E-Wealth A/c. KYC (Know Your Customer) is done by providing your PAN & ADHAAR details or any other Valid Address Proof, KYC documents are not required if you are already KYC registered.

3. You need to have a savings bank account through which you can invest in mutual funds online, No Cash Transactions are allowed in Mutual Funds. 

4. Select a Category of Funds that are suitable for your goals.

5. Select a consistent performing scheme (fund) in that Mutual Fund Category.

6. Select your mode of investment: Lumpsum (for One-time Investments) or SIP (for monthly investments)

7. Select Payment Mode of Investment: Net Banking, Cheque, NEFT/RTGS, or UPI. (Credit Cards are not accepted for Investment in Mutual Funds)

These are the steps that you need to follow to start your mutual fund investments.

For your query regarding your money,

As your goal is Retirement, As you have not mentioned your retirement age & current age, Assuming you have another 20 Years to retire – You can go for the Multicap Category of Equity Mutual Funds, they are ideal for your goal and will give you decent capital appreciation by investing in all large, mid & small-cap equity portfolio.

For any other query, tweet me @gurpreet_saluja