how to invest in mutual funds india online | how to invest in mutual funds online
Do you want to invest in Mutual Funds? What have you said? Yes? Well, sit back and relax, as in this post we are going to tell you how to invest in mutual funds. To know everything in detail read the article up to the last.
Why you should invest in Mutual Funds?
Mutual Funds are probably the best option for wealth creation in the long run without taking too much risk. As in most cases, Mutual Funds deliver CAGR of a minimum of 12% in the long term. Further, with Mutual Funds SIP or Systematic Investment Plan, an investor especially young investors become financially more disciplined. However, do you know how to invest in mutual funds ? If not, do not worry. We have discussed the same below.
How to Invest in Mutual Funds
An investor has two options to invest in Mutual Funds – 1) Traditional way of Investing in Mutual Funds, 2) Investing in Mutual Funds Directly.
The traditional way of Investing in Mutual Funds
- In this traditional method, an individual invest in Mutual Funds through an Agent or Broker. In this system, the biggest con is that a good portion of your investment will go to the agents’ account as a commission. Further, there are very few options for the investor to choose the right Mutual Funds for himself. This is because in general the Mutual Fund Agents are affiliated with only one Mutual Fun company. For these reasons this traditional way of investing in Mutual Funds through agents has become obsolete.
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Investing in Mutual Funds Directly
- In this method, an individual can invest in Mutual Funds directly by himself online. In this case, there is no need to pay a commission for the agent or middleman. We have discussed this method elaborately below.
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How to Invest in Mutual Funds in Online
To invest in Mutual Funds Online, there are numerous mobile applications through which you can directly buy Mutual Funds without any hassle. The advantage of investing in Mutual Funds online has lots of benefits – as you can easily check the Fund’s previous performance, its terms & conditions, the profile of the Fund Manager, etc. These pieces of information are very important when choosing the right Mutual Fund for himself.
There are various applications or platforms for investing in Mutual Funds like Zerodha, INDmoney Upstox, Grow, etc. Below we have discussed how to invest
How to Invest in Mutual Funds in Zerodha
To invest in Mutual Funds in Zerodha, you must have an active account with Zerodha Kite.
Step 1: – Go to Google play store and search for “Coin App by Zerodha“
Step 2: – Install the Coin App by Zerodha app.
Step 3: – Now click on the ‘Login‘ option and then enter Zerodha Kite User ID & Password, and then 6 digit PIN, and then click on the ‘Continue‘ option. Then, the Coin application will open.
Step 4: – Then click on the ‘Discover‘ option. Here you can choose the category of Mutual Funds in which you want to invest.
For example, let’s say you want to invest in Index Funds. Hence, click on the ‘Index Funds‘ option.
Step 5: – Now, you will see a list of Index Mutual Funds. You can choose any of these. Let’s say, we want to invest in HDFC Nifty Index Fund. Hence, click on ‘HDFC Nifty Index Fund‘. You can check all the details of the Fund then.
Step 6: – Here you have two options. Either you can go for a one-time investment, or you can start a SIP.
- For a one-time investment, click on ‘Buy’. Then enter the amount you want to invest. After that, again click on the ‘Buy‘ option. Then, finally, select the ‘Invest’ option. After that, your order will be placed.
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- For SIP investment, click on ‘SIP‘. Then enter the initial investment amount, Installment/SIP amount, and Frequency (how often you want to invest in SIP).
- You can choose weekly/15-days/Monthly/Quarterly. After that, enter the date on which you want to invest in SIP. If you want to increase the SIP amount every year, choose ‘Automatic step-up‘ and choose the increment percentage. Then, finally, select ‘Create SIP‘ option and then the ‘Create‘ option. To pause/resume/modify the SIP tick on ‘AMC SIP‘ option. Having this option enabled, you can change the SIP amount anytime or pause the SIP as per your convenience.
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- In both the above cases, within 2 to 3 days Mutual Fund units will be allotted to you. Then, you can see the Mutual Fund in which you have invested within the ‘Investment‘ section in the lower section of the app.
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