Do terms like Mutual Funds leave you confused? Does it seem it’s going to be too much of an effort to understand Mutual Funds? Many would see this as a hefty financial scoop to lay their hands on, making this topic a dreaded zone to venture in. However, the reality is that Mutual Funds are not just easy to understand but are also a great mode of investment!
How to invest in mutual funds?
• Be clear about the time period of your investment.
• Choose a fund based on your risk appetite. Greater the risk, greater would be the rewards or losses. Always inquire about the risk profile before investing.
• If you invest through an agent, you will be paying Entry Load up to Rs. 150. However, a direct application to the Mutual Fund doesn’t require any additional payment.
• Go through the list of charges - Expense ratio, Exit Load, Demat & Brokerage Charges etc. Calculate how much you will be paying in total.
• Verify what exemptions under IT Act you can avail, if any.
With the help of the above checklist, once you shortlist the Mutual Funds that suit your needs, go through their historical performance graph. Also, see the history of returns generated by the fund manager who would manage your portfolio. By now, you know where and how your investment will generate the maximum returns.
See, it wasn’t that hard. So, without any further ado, just dive in!
How to invest in mutual funds?
• Be clear about the time period of your investment.
• Choose a fund based on your risk appetite. Greater the risk, greater would be the rewards or losses. Always inquire about the risk profile before investing.
• If you invest through an agent, you will be paying Entry Load up to Rs. 150. However, a direct application to the Mutual Fund doesn’t require any additional payment.
• Go through the list of charges - Expense ratio, Exit Load, Demat & Brokerage Charges etc. Calculate how much you will be paying in total.
• Verify what exemptions under IT Act you can avail, if any.
With the help of the above checklist, once you shortlist the Mutual Funds that suit your needs, go through their historical performance graph. Also, see the history of returns generated by the fund manager who would manage your portfolio. By now, you know where and how your investment will generate the maximum returns.
See, it wasn’t that hard. So, without any further ado, just dive in!
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