• Mutual funds investment has a strong medium for creating and maintaining financial security that has emerged in the guise of mutual funds online which enables people to invest in the market with comparatively lower cost and lower risk.
  • This is possible because the mutual fund companies tend to pool in several numbers of investors and collect their funds, which is then collectively invested in the market to yield the best returns.
  • The great news is that since recent times, companies have started providing Online Mutual Funds investment services too.
  • These are the services provided by various companies dealing in Mutual funds.
  • Asset Management Company, via online portals, making it very convenient for regular citizens to understand the essentials of the mutual fund investment. While making it very easy for them to figure out the best scheme available to them and start investing.
  • In a nutshell, from A to Z, the sphere of online mutual funds covers everything regarding mutual fund investment.

Mutual Funds Investment for beginners

  • If you’re a beginner, then the first thing you need to gather the information regarding the mutual in which you want to invest.
  • Precise and crisp information is available on the online portals regarding all aspects of the mutual funds that you need to know before proceeding.
  • If you are already acquainted with the mutual funds, the investment will become even simpler.
  • Various service providers make it very easy for you to figure out the best available plans for you in the market, about your circumstances.

These service providers often come up with an online form that you have to fill with your basic details like:

  • Name, e-mail id, phone no.
  • Place and Country of birth
  • Nationality
  • Age and Gender
  • Address
  • Tax Status & PAN ID
  • Occupation
  • Gross Annual Income or Net worth.
  • Bank Details like Bank name, IFSC Code, Account type and number, Branch, etc.
  • Additional details like seeking a joint holder or requirement of a nominee, etc.

This helps them to create an online portfolio for you, which is an absolute pre-requisite for mutual fund investment.

Factors consider before investing in Mutual Funds

Risk Profile & Asset Allocation

  • Based on various factors like
    • The investment period
    • The scale of investment, and
    • The risk involved in the investment.
    • In addition to your portfolio, your risk profile is determined, based on which your Asset Allocation capability is calculated. Both these are undeniably essential to the mutual fund online investment.

Shortlisting Funds

Various types of Mutual funds available in the market

Based on Asset Class

Equity funds

  • They fall under the stocks and shares of companies.
  • High-risk funds but also provide higher returns.

Debt funds

  • Safe investments with fixed returns.
  • Investments made in debt instruments.

Money market funds

  • Safe investments for parking surplus funds for moderate
  • They have immediate returns

Hybrid or balanced funds

They are mixed funds with a higher proportion of equity than risk.

Sector funds

Investments are made in a particular sector of the market.

Index funds

They are Index specific investments.

Tax Saving funds

They enable the investor to enjoy tax benefits.

Fund of funds

Returns depend upon the performance of the target fund.

Based on Structure

Open-ended Funds

They are the kind of flexible mutual funds with units available for sale or purchase throughout the year.

Close-ended Funds

In close-ended funds, units are only available for purchase during the initial offer period.

Based on the investment objective

  • Growth funds – Capital appreciation
  • Income funds – Capital protection and Regular income
  • Liquid funds – Liquidity

Online service in the field of mutual funds enables service providers to shortlist the best suitable mutual funds based on the information and purpose provided by you, keeping your interests on the forefront. This is important because depending on the type of funds, the allocation of funds is made.

Once you’ve finalized the schemes where you like to invest, you can immediately make an online payment and begin your mutual fund investment venture. Thereafter, your particular profile with the service provider will enable you to keep track of the market status, your investment status, while also giving you the options to modify your investment structure by your growing or changing needs, within the dimensions of that particular type of mutual fund investment or whatever kind of modification is legally permissible. Any doubts or queries regarding the same can be cleared by the high-end support teams available to assist you through every step of the process.

Related Article-

How to choose the right mutual funds

Advantages of Mutual Funds

Become a Mutual Fund Agent