For many, investing sounds like a tedious task. A lot of first-time investors turn their backs on mutual funds because they find the endeavour very tiresome. But what if you found out that it is actually a paperless and straightforward process? For starters, a mutual fund is an investment tool that pools money from many investors to purchase a diverse portfolio of securities, which in turn generates maximum returns for the investors. It opens doors for individuals to invest collectively without worrying about professional management and the high costs associated with larger investments.
If you want to diversify your investments, lack the time or expertise to manage your portfolios, or prefer to start with smaller amounts, you can consider mutual fund investment. Here’s a beginner’s guide on how to start investing in a mutual fund.
Choose a Mutual Fund
Since there are many mutual fund investment schemes today, it can be overwhelming to choose one. You can seek financial advice from a mutual fund expert or distributor who can guide you to the best mutual fund to invest in, depending on your requirements.
Fix an Investment Goal
When done with a purpose, mutual funds typically work well. So, you need to define your financial goals and then fix a budget. This will help you determine how much money you can keep aside for mutual fund investments.
Get Your KYC Updated
Unless your KYC is updated, you will not be able to invest in a mutual fund. This process is crucial as it allows financial institutions to know about your income source and prevent money laundering. To become KYC-compliant, you need a valid address proof and a PAN card.
Mutual Funds have become a popular way of investment due to their far-reaching benefits. If you are looking to meet your short or long-term financial goals with ease, you can follow the guide on how to start investing in a mutual fund and visit your nearest financial institution for the best advice.
So, are you ready to start investing smartly?
