What is Mutual Fund, How to start Mutual Fund in India

mutual fund is a type of open-end professionally financial vehicle made up of a pool of money collected from many investors to invest in securities such as stocks, bonds, money market instruments, and other assets to earn returns on their capital over a period. These investors could also be retail or institutional in nature. Begin with some random questions roamed around in your mind. Know about Mutual Fund in India and what is the procedures for applying this mutual Funds.

How can I make money from the Mutual Fund?

In mutual funds, you can make money in three possible ways: Income earned from dividends on stocks and interest on bonds. A mutual fund pays out nearly all of the net income it receives over the year (in the shape of a distribution). An increase in the price of securities which called ‘capital gain‘.

Is my money safe in Mutual Fund in India?

There is no guarantee youll not lose money in mutual funds. In fact, in certain extreme circumstances you could end up losing all of your investments. Mutual funds are managed by fund managers who invest in a wide variety of stocks, bonds and commodities. So, it is not that all of your mutual funds would fail. Choose mutual fund for investment in your own risk.

What is SIP in mutual fund?

Systematic Investment Plan (SIP) is a financial planning tool that helps you to make wealth, by investing small sums of money monthly, over a period of time. It is a vehicle offered by mutual funds to assist investors invests regularly in a disciplined manner.

How do I start a mutual fund in India?

There are different ways/places you can open an MF account.

  1. You can buy units directly from AMC.
  2. You have to open a demat account with any broker firm like Open an Online Trading Account with ICICIDirect.
  3. Another way is to open account with MFUtility through which you can invest in direct plans without paying any commission.
Mutual Fund in India
Procedures of Mutual Funds Application

Can I invest in Mutual Fund in India online?

Yes, You can. Today’s digital world help us to apply any kind of investment through application. One of the most trusted apps for mutual fund is Groww. Groww is one of the best apps for mutual fund investment. Minimum amount to invest 500. It is very easy to invest and you can get your account statement monthly in your mail. No need to go branch or meet any adviser. Anybody san handle it in his/her own.

There are some apps like my CAMS, KFinKart, Zerodha coin, ETMoney etc.

How can I stop my investment and withdrawal my amount?

If you want to stop you SIP, you have to request on your application. They will cancel your SIP. You can redeem your invested amount to your bank account directly. It will transfer within 7 working days.

Are Mutual Funds safer than stocks?

The stock market or equity market or share market is the combined market for buyers and sellers of shares, a loose network of financial transactions, may include securities on a public stock exchange. Here investments are done via stockbrokers and electronic trading platforms.

Stocks are riskier than mutual funds. By pooling ton of stocks in a stock fund or bonds in a bond fund, mutual funds reduce the risk of investing. This lowers the risk, thanks to diversification. It is the reason; many investors feel that mutual funds in India provide the benefits of stock investing without the risks.

Can I withdraw my invested amount any time?

Yes, I can. It is very easy to redeem your amount any time. You have to take a look in your statement, invest amount then you can withdraw all the invested amount or a little from it. Transferred amount will directly shows in your bank account.

How long I can hold my money in mutual fund?

If you want to invest in mutual fund, you have to take a long time. It is benefit for any mutual fund holders.

You might be interested in:

Best mutual funds for anyone

There are a list of best mutual funds in 2019-2020 which may help to grow your financial plan.

Top equity funds-

  1. Mirae assets large cap fund– 3yr returns 8.84% and 5yr returns 8.12%
  2. Axis Blue chip Fund – 3yr returns 8.71% and 5yr returns 6.22%
  3. ICICI Prudential Blue chip Fund – 3yr returns -0.94% and 5yr returns 1.99%
  4. SBI Blue chip fund – 3yr returns -2.53% and 5yr returns 1.17%
  5. SBI Magnum Multicap Fund – 3yr returns -1.65% and 5yr returns 2.8%

Hope it will assist you. Before investment please know all terms and conditions in your plan. Mutual fund badiya hay. Stay tuned with BLOGS ROCKS.