Mutual funds investment guide for beginners

Mutual Fund




MUTUAL FUND INVESTMENT Once you understand this, if you want to start investing in Mutual Fund, but you can understand how to start, after reading this post, you can start investing in Mutual Fund with complete confidence. In this post of Mutual Fund Investment to start Mutual Fund Investment, we will know about some of the key STEPS mentioned below-
  1. The purpose of mutual fund investment: to increase the purpose of joint venture investment
  2. Mutual investment value: What type of investment is Lump sum or SIP,
  3. Mutual investment scheme OPTION: selection of mutual fund scheme,
  4. Document for mutual investment document: documents required for mutual investment
  5. Mutual fund investment: where and how to invest: means and how (Direct or Regular)
  6. Choice of mutual fund benefit: growth plan or division system
  7. The mutual investment form completes and the rules: completion of the fund application form
  8. Mutual NAV investment tracking
  9. Mutual Investment All Done - Happy Investing
Let's understand all these steps in detail one by one -

MUTUAL FUND INVESTMENT GOAL DECIDE
Before we start Mutual Fund Investment, we need to know - Why are we investing in that, what is the goal of our investment? To be clear what percentage of mutual fund investment we want from investment returns, and for how long (Period), how much money we can invest,
For example - if after 5 or 6 years - I want to buy a car worth 15 lakhs, or after 17 years, I want 30 lakh rupees for a child’s HIGHER EDUCATION, or I want rupees 1 Crore after 30 years of retirement,
So when investing in a mutual fund to achieve such a financial goal, you can choose the EXTREME RISK and the best MUTUAL FUND, and you can easily raise your financial goal without increasing the risk. You can complete
Before INVESTMENT, if we set the goal for that investment in advance, then there are several IMPORTANT benefits.
as -
  • INVESTMENT can be started soon,
  • AMOUNT of the INVESTMENT needed to meet the goal is known,
  • It is known that at least % of the profit required to meet the purpose of INVESTMENT AMOUNT,
  • If TIME of investment is decided beforehand, then we can also avail TIME for POWER OF COMPOUNDING,
  • Above all, if we know the profit percentage required to meet our investment goals, we can take advantage of better investment by raising at least RISK or CALCULATED RISK as per our ability.
Therefore, before starting a joint venture, the reason for your investment or the purpose of the investment must be very clear. How to Start to invest in MUTUAL FUND (SIP or LUMP SUM):
To begin the investment of the MUTUAL FUND, we will first talk about understanding the policy or purpose of the Mutual Fund, once you understand the objectives of investing. So you have two things to invest in - how much you need to invest, and how much you should invest. Now you also have to decide whether you want to invest in a ONE-TIME INVESTMENT which means LUMP SUM AMOUNT, or every month, according to your SAVING, you want to invest in small and large investments with the help of SIP (Systematic Investment Plan). You also find various ways to invest in the SIP (Systematic Investment Plan), such as - how long you want to invest the full time, and how the investment time will come in - Monthly, Quarterly, or half-year. You can also choose your payment mode, ECS, NEFT, or CHECK. 

MUTUAL FUND INVESTMENT SELECTION: Scheme Selection

The next step is to choose a mutual fund scheme, and when you understand the purpose of investing in a mutual fund, you also get a clear idea of how much money you can have for investing, And what percentage of compounded profit do you need to meet your investment target. Like - let's say the purpose of our investment is to put my child up for HIGHER EDUCATION money after 14 years, which requires 18 lakh rupees. With this in mind, I will start by looking at how much I have saved today, I think I have a second savings job I had, and I can save Rs 3000 a month. Now the question is whether saving 3500 rupees every month means - 42 thousand a year, and thus in 15 years I can invest 5 lakh 88 thousand, and my goal is 18 lakh rupees.
In this way, first of all, we need to find out with the help of the COMPOUND INTEREST calculator that - after SAVING every month 3500 rupees, if I want 18 lakhs after 14 years, then what percentage of profits to MAKE in this investment, then the answer will be - almost 16%, And for a 16% annual return you don't have to take a big risk, you can choose your BALANCED EQUITY FUND, which has a good record. Now, there are thousands of mutual fund schemes available in the market, in which you can choose a scheme with a better track record out of the few mutual funds that meet your investment objective.

MUTUAL FUND INVESTMENT OPTIONS: Growth Plan or Dividend Plan
There are two ways you can get benefits from a mutual fund - one in the form of DIVIDEND, and the other in the NAV price increase. With choosing a mutual fund investment scheme, you have to choose one of these two options, such as how do you want to take the benefit of the mutual fund, do you want to keep withdrawing the dividend, or the profit Want to keep investing again (Reinvest - Growth). With this, in the mutual fund scheme, you get two options - DIVIDEND OPTION or GROWTH OPTION Let us know both of these options in detail. DIVIDEND OPTION IN MUTUAL FUND: Mutual fund DIVIDEND refers to the mutual fund interest that will be transferred from time to time, to TRANSFER in the investor's account, we all have to choose this investment method together, looking at our economic goals, which we must. If we want to continue withdrawing mutual fund benefits regularly, then we have to choose DIVIDEND OPTION. GROWTH OPTION IN MUTUAL FUND: 

If we want to keep reinvesting the benefits of mutual fund investment back, so that we can get the benefit of POWER OF COMPOUNDING to meet our investment goals, then we should choose GROWTH OPTION, Because in GROWTH OPTION, the profit from the mutual fund is returned, reinvested, and we get profit over profit, and thus we get COMPOUNDING profit. MUTUAL FUND INVESTMENT REQUIRED DOCUMENT:

To start a mutual fund investment, it is also important to understand what document we should have, you need two types of documents, one is KYC and the other is bank account information. First of all, you have to complete the KYC process, such as the necessary documents to verify your details, such as -
  • Passport size Photo
  • Pan card,
  • Aadhar card
  • Proof Address

According to the institution provided by Mutual Fund, you can also complete your KYC with the E-KYC process with the help of an Aadhaar card. Apart from this, if you are investing through SIP, you will also have to submit the details of the bank from which you want to pay. If you do ECS, you must complete an ECS form, and you must provide a canceled cheque to your bank. MUTUAL FUND INVESTMENT: WHERE AND HOW TO INVEST :

When you want to start a mutual fund investment, you have to invest in an already running scheme, or you can also invest in a new NFO, and in that case, you should buy or invest in a mutual fund scheme. There are two types of Mutual Fund Investment options - REGULAR PLAN or DIRECT PLAN. Let us know - what is a common mutual fund program, and what is a specific mutual fund program? Regular Plan Mutual Fund Investment -

When purchasing a Mutual Fund from any Traditional Fund DISTRIBUTOR or Mutual Fund ADVISOR or Mutual Fund Selling Agent, which includes the Advisory / Distribution / Agent Commission, that investment is regulated. It's called the Regular Plan investment strategy.

It is to be noted that such distributors/advisors/agents have an ARN (AMFI registration number), and the mutual fund company helps these agents and advisers, and distributors to sell their program to as many people as possible. And they are called mutual fund intermediaries. These AGENTS partners receive between 0.5% and 1.5% of the investor's investment in the form of finance or COMMISSION . For example, if I invest Rs 7000 in REGULAR PLAN every month, then 05.% to 1.5% i.e. Rs 35 to Rs 105, or COMMISSION is available with the agents in between. DIRECT PALN Mutual Fund Investment - 

An investor in DIRECT PALN Mutual Fund buys a mutual fund scheme directly or directly from a mutual fund company (AMC), with no agents or DISTRIBUTORs in between. And in this way, in DIRECT PLAN, we do not have to pay any kind of COMMISSION or fees, we are able to invest all our money.
If you have little knowledge of Mutual Fund Investments, you can buy Mutual Fund directly from the company, and you can take full advantage of the investment by keeping your expenses as a Commission. You can invest in a specific program with this service, and you can take full advantage of the investment by controlling the COST of your investment. MUTUAL FUND Application Form

After CLEAR the purpose, amount, profit, and investment options of Mutual Fund Investment, when we have to fill some forms for Mutual Fund Investment to invest in Mutual Fund Scheme. You can also fill it in PHYSICAL FORM which is given by the mutual fund company, that is, by filling the offline form and give it to the mutual fund company or agent. Or if you are investing in ONLINE Mutual Fund, then you have to do E-KYC, and you can also fill the Mutual Fund Form and its application online and send it to the company. MUTUAL FUND INVESTMENT TRACKING NAV
In this way, when you fill the Mutual Fund Investment Form, your Mutual Fund Investment starts, and if you have opted to continue investing through SIP at regular intervals, you should keep in mind that The bank ACCOUNT that you have submitted in SIP, the account has sufficient ACCOUNT BALANCE before DATE of SIP. Also, from time to time, you should keep looking at the NAV of your mutual fund, so that you can know whether or not that mutual fund is giving the benefit that is meeting your investment goals. Also, you should remember that mutual fund investment is an investment linked to the stock market, and the stock market profit keeps going up and down considerably in the short term, so you can make your investment NAV in some way on WEEKLY, or MONTHLY report. Compare whether you are getting the benefit according to your requirement or not.

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