How to invest in Mutual funds? for begginers | earn profit.


So, Basically mutual funds refers to the funds raised by financial service companies. by pooling the savings of the public and investing them in diversified portfolio.
 I had already told about this basic mutual funds concept in the last article.

Now there are 3 types of mutual funds.
 1. Equity funds :- Equity funds are those funds that invested in equity share.
 in this investment chances are
*High Risk
*High Return

2. Dead funds :- Dead funds are those funds that are invested in the dead companies.
in this investment, chances are
*Low Risk
*Low Rerurn

3. Balanced funds :- Balanced funds are those funds which are invested in various portfolios or divide them between 1) Equity funds & 2) Dead funds
So they balancingly divided into various funds.

So, lets go to about investing in mutual funds.



1.Bank Account: You must keep one bank account separately for investing and not your normal saving salary account.

2. KYC and Now CKYC: Be sure to be KYC compliant. Visit https://camskra.com/ or https://www.cvlkra.com/ to register for your KYC. You have to provide a copy of your self-attested address proof, proof of identity and a recent passport size photograph. You can do all of this on any of these sites or through Registrar and Transfer agent or your registered mutual fund distributor at no charge.

3. PAN: Your permanent account number is essential to invest any amount above Rs. 50,000/- in India.

4.Aadhaar: AS of July 1st, 2017, you have to link your PAN with your Aadhaar. Do it here: https://incometaxindiaefiling.go...

5. Understand and define your goals

6. Set your investment objectives: You need to identify your investment objectives regarding goals to investments. The purpose of investment in mutual funds with time horizons for each goal should be clearly mapped.

7. Understand and outline your risk, and then the relevant respective expectations from your investment returns over the defined tenure.

8.Portfolio Mix will be determined from your goals, time horizon, risk profile. Equity or Debt or Balanced. Monthly or lump sum, all such issues get resolved at this stage.

9. One cancelled cheque from your bank account is needed to map your bank to your investments.

10. Choosing your Funds: Go to the four-step approach and then start planning with your financial planner or investment advisor for direct mutual funds with online as an option. Be knowledgeable and confident so that you know where you are going, from where you are today and how you will get there!

11. Set up, if necessary, SIP and ECS.

12. Track and monitor your investments: There are various methods, but your investment advisor would know best as he is the right professional. But you have to track still and keep monitoring all your mutual funds to ensure they are in sync with your financial plan.

13. Buy and Sell: be sure to know how and when to redeem and retrieve your investments into your bank account.

So,Basically that was the step-by-step procedure for mutual funds.

Lets go on, the instructions of mutual funds.


For the people who don't have a big sum of money, can choose a scheme called SIP(Systematic investment plan). 
minimum the people can invest up to ₹500/- or ₹1000/-.

Tips for Beginners:

 Before investing read carefully about company prospectus before investing in it.

Ask that company about that what is goals that we are investing in. means to ask if its good for  long term investment or good for short term investment.

So you take such information from the company before investing in it.

Check the History of the company which you are investing in it.

Ask about it risk, so you be get alert or invest in low risk company.


NOTE:-

 When you invest in a mutual fund, investor depend on fund manager to make the right decision regarding the funds portfolio. If the manager does not perform well investor has to suffer.

So, at the end your profit depends on company. if company Got bullish, there is maximum chance of profit.

Plzz Share....

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