4 ways to start investing in Mutual funds

Investing in Mutual funds is a relatively simple process. You can invest through a financial intermediary, i.e., a mutual fund distributor registered with AMFI, or invest directly without any distributor. The distributor might be an individual, a bank, a broking house, or an online distribution channel. Moreover, a demat account is not mandatory to buy Mutual funds. Here are 4 ways to start your mutual fund investment journey. 

Financial advisors. An advisor would help you plan all of your investments, from setting your goals and time frames to recommending appropriate investments. They will also help you buy mutual funds. 

Broker. If you already have a trading account with a broker, you can ask them to purchase mutual fund units in your account and also suggest schemes suitable to your profile. Mutual fund schemes are also allocated unique ISIN numbers like shares, and mutual fund units are identified and held in demat based on this ISIN number. ​

Banks. Most banks are also mutual fund distributors and offer schemes which you can buy. You can visit the bank or meet your relationship manager, who will suggest schemes, after which you’ll have to fill out a form and remit a cheque. Some banks may also offer the facility to purchase mutual funds through their online portal.

Direct funds. If you have the time and knowledge to pick the fund that suits your needs, risk appetite and investment objective. You can buy direct mutual funds. You can do so directly from the chosen fund house’s website. 

Online or offline, directly or through an intermediary. Mutual fund investing is a simple process. So kickstart your wealth creation journey right away! 

 

Disclaimer

Mutual fund investments are subject to market risks, read all scheme related documents carefully.