How to Invest in Mutual Funds
Mutual fund investments are subject to market risk. Because of this before investment you should set your investment objectives, examine your risk capacity, read all schemes related documents carefully to earn more income. It is one of the best investment option for small as well as big investor. Process of investment in mutual funds is very easy. You can invest in mutual funds either through your mutual fund advisor or office of the Mutual Fund / Investor Service Centre or nearest service centre of the Registrar & Transfer Agent. Before investment you should select the appropriate scheme best suited to you. Process of investment in mutual funds involves following steps :
1 Setting investment objectives
2 Selecting the scheme to fulfil your objectives
3 Changing the savings into investment
Setting Investment Objectives
Before investment you should decide your investment objectives. There are various factors which affect your investment. Ask with yourself these easy questions given below, which will help you to set your investment objectives.
1. What is my age ?
2. How much money I can invest in my life ?
3. How much risk I can take with my investment ?
4. What will be the duration of my investment ?
5. How much return I want from my investment, it means what rate of return I want on my investment ?
6. When I will need income from my investment ?
7. Does I want to save tax also ?
Selection of Schemes
There are 35 mutual funds running in India and each mutual fund has many schemes. First of all you have to decide about selection of your mutual fund and then scheme. Before investment try to know about following steps :
1. Background of mutual fund
2. Management and performance of schemes for previous some years
3. Services provided by mutual fund to their investors
Now select the scheme. For this you should compare your investmet objective with mutual fund scheme objective.
Consult with your Investment Advisor
You can avail services of your investment advisor to make your investment planning. If you don't know any mutual fund advisor, you can search a mutaul fund advisor through the site of amfiindia.com nearest to you with help of the name of your city and postal pin code of your area. Or you click the link below to search mutual fund advisor nearest to you Search mutual fund advisor in your area.