How to start investing in mutual funds in 2023?

Securing your financial future is a crucial step that you should take today to lead a stress-free life tomorrow. With the world constantly evolving through technological advancements and globalisation, the cost of living is increasing every year. So, you must have a clear investment plan to secure your future and prepare yourself for any unexpected financial challenges.

But at the same time, the investment should offer you diversification, liquidity, and professional management. So, where should you start? Mutual funds can be a smart way to begin as they give investors an opportunity to invest in a diversified portfolio of stocks, bonds, and other assets.

Not only this, but you can also start investing with small contributions via SIPs and withdraw your investments flexibly with just a few clicks.

Given its importance for your financial future, here are four different ways to invest in mutual funds in 2023.

  • Directly with AMC

If you like to manage your account on your own, you can start investment in mutual funds directly with the AMC (Asset Management Company). Simply visit the nearest branch of the AMC or apply online through their website. This requires completing the KYC (Know Your Customer) formalities and submitting the necessary documentation.

Direct investments through an AMC also facilitate transparency, personalised account management, and guidance from qualified professionals. But make sure you select an AMC after evaluating their reputation, experience, and fund manager’s credentials.

  • Offline investment through a broker, distributor, or investment advisor

A mutual fund broker or distributor can help you throughout the investment process, providing all the necessary information about different schemes and the required documentation. They can guide you on which mutual fund schemes suit your investment goals better as per your age, income, and financial liabilities.

After investing, you can also receive ongoing support from financial advisors to adjust your portfolio with changing market conditions.

  • Through investment apps

With mutual fund investment apps, you can easily invest, buy or sell units, check account statements, and track portfolio details. These apps allow hassle-free investment with their user-friendly interface and helpful tools. With just a few clicks, you can check and compare different types of mutual funds and their latest Net Asset Value (NAV).

Most of these apps also offer investment suggestions and insights to help you make wise investing decisions. Simply download the app, create an account, complete your KYC, and start investing.

  • Through your own bank account

Today, most banks offer mutual funds and make it easy to invest directly through your savings account. Just log in to your net banking account, click on ‘mutual funds’, and select funds you want to invest in. Once you have chosen your funds, you can set up auto payments and schedule them at regular intervals as per your convenience. This simplifies the investment process and makes it easy for you to track all your progress in one place.

Closing thoughts

The digital world has broadened the scope and accessibility of mutual funds, making it easier for more people to invest. But the market is unpredictable, so it is more important to carefully evaluate and select the right fund for your short and long term goals.

Go through the scheme related documents before investing to understand the fund’s cost structure, minimum investment requirements, portfolio holdings, and other key factors. Once invested, take guidance from a financial advisor to ensure your portfolio is well diversified across different asset classes and sectors to mitigate risks and optimise returns.

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