What is a Mutual Fund? Know which mutual fund is the best?

What is a Mutual Fund? Know which mutual                               fund is the best?

What is a Mutual Fund

What are Chew Funds? (What are Mutual Funds)

Mutual fund is a means of investing in which a mutual fund company raises money from different investors, invests the money deposited and continuously manages that fund for you.
The money given by investors is used to invest in different places. Where the investment will be made depends on the type of mutual fund. You will learn more about this further. Whichever mutual funds you invest your money in. It is an attempt by the mutual fund company to give maximum profit to the investors from their money.
The management of funds is done by a professional person called a fund manager. Mutual funds have been present in our country for a long time. But even today most people are not fully aware of it. Initially, people believed that mutual funds were meant only for the rich class investors. But this is not the case at all, in today's time anyone can invest in mutual funds even with a minimum amount of ₹ 100. Mutual funds are a great way to grow your wealth. Because it is managed by a fund manager, you do not even need to know much about the stock market.

What are the types of Mutual Funds?What is a Mutual Fund

There are three types of mutual funds, mainly on the basis of investment and risk. These are as follows.
1. Equity Mutual Funds: Equity funds mainly invest in shares of various companies. You gain or lose by having the stock price up or down. Equity funds are a good option if you want to invest for a long time. Equity mutual funds have a higher risk and at the same time you get higher profits in the long run.

2. Debt Mutual Fund: These are low risk mutual funds that mainly consist of government securities which include bonds and treasury bills. Investing in debt mutual funds is much less risky than equity funds and is good for investors who want to invest for a short time.

3. Balanced & Hybrid Funds: These types of mutual funds have a mix of both debt and equity. These are medium risk mutual funds. In hybrid mutual funds, the debt and equity ratio is determined by the fund manager and depends on the expected return from the fund.

Benefits of Mutual Funds? (Mutual Funds Benefits)What is a Mutual Fund

The biggest benefit of a mutual fund is that in the long run it gives you more benefits than FD. Mostly you get interest of around 7 percent in FD whereas mutual funds can give more than double its returns. Some other benefits of Mutual Fund are as follows:

1. Excellent means to start investing with less capital: Because you can invest in Mutual Funds even with just Rs. 100, it becomes an excellent means of investing with less capital.

2. Professionally managed: The mutual fund is managed by a professional manager. This manager handles the fund according to the market. The biggest advantage of this is that you do not need to have knowledge of the stock market.

3. Higher Returns than Traditional Investments: Investing in Mutual Fund gives you much more benefits in the long run than FD or savings account. If you want to invest money for 5 to 10 years then you must consider Mutual Fund.

4. Well regulated by SEBI: All mutual fund companies are regulated by SEBI. The money invested in your mutual fund is safe and SEBI keeps a close watch on the companies managing the fund.

5. Tax savings: You can save tax by investing in ELSS (Equity Linked Savings Scheme) funds. You have to invest in it for at least 

3 years and this gives you a rebate of up to Rs 1,50,000 on your annual taxable income.

Apart from this, there are many benefits of mutual funds but the most important among them is that if you want to make more capital in the long run, then investing in mutual funds is a great way.

What is Mutual Funds SIP? (What is Mutual Fund SIP?)What is a Mutual Fund

SIP is a full form Systematic Investment Plan. Through SIP, you can invest the amount you choose every month in Automatically Mutual Funds. While doing SIP, you have to select the amount of investment you have chosen and the date of investing every month just once. Whenever your investment date comes, the money will be automatically invested from your bank account through SIP.
How to invest in Mutual Funds? (How to Invest in Mutual Funds)
Investors can also invest in Mutual Funds by investing very little money. If you are investing in mutual funds for the first time, then you can start quite easily. There are many online apps through which you can start investing in mutual funds. You can do KYC by signing up and you can start investing shortly after KYC is verified. Some of the most popular apps to start investing in mutual funds are as follows:

How to invest in Mutual Funds with Paytm Money?What is a Mutual Fund

Paytm Money is a very good way to start investing in Mutual Funds. You can buy Mutual Funds plans of 40 big companies with Paytm Money app. You must have a pen card to invest here. In this, you can start your mutual funds investment through SIP (Systematic Investment Plan) for Rs 100. Below are some steps for investing through Paytm Money. You can easily start investing in mutual funds by following them.
Step 1. First you have to create your account on Paytm Money App. After this, after coming to the home screen, you will get a complete list of different categories of mutual funds. In which categories like equity, debt, hybrid etc. will be found. Here you will also get the option of fund managers top rated fund and buy mutual fund houses.

Step 2. After selecting the category, you can see the complete details by clicking on it. After this you have to click on the 'invest' tab. After this, a new window will open in front of you.

Step 3. In this new window you will also get options like Top Rated, Investment Ideas, Fund Manager and MMC.

Step 4. After this, a complete list of your respective funds will open. Here, click on any fund you want to invest in. After clicking, the complete information about that fund will be open to you. You should read this information well. In this, you get information about the past performance of that fund, information about the fund manager and the expense ratio.

Step 5: After getting complete information about the fund, you will see the option to 'invest now' which you have to choose. After this you can start your investment through SIP (Systematic Investment Plan).

Step 6: After doing this, on which date you should know your SIP every month, for this you have to select the date. Through this app platform, you are also given the opportunity to invest large amounts simultaneously.

Step 7: After doing all this, now you have to click on 'Proceed to payment' option. Here you also have to select the option of paying through net banking, debit card and auto pay. You will also get the status of the fund and other information as soon as the payment is completed. After this, whenever you want to see the performance of your fund, for this you can see the option 'My Portfolio'.

How to invest in mutual funds from Zerodha Coin?What is a Mutual Fund

As you know most distributors are required to buy Mutual Funds plan. And this distributor also earns a good commission, but to avoid this commission, you can buy and sell mutual fund plans of any company without any commission with the help of Zerodha Coin. This reduces your expense ratio and also does not require any paperwork in it. Let me tell you that you can invest up to Rs 25,000 absolutely free in Zerodha Coin. If your investment is more than 25,000, then you have to pay only 50 rupees, which is very less and you do not have to create a Zerodha Coin DEMET account. Through this DEMET account, you can buy and sell plans directly with the help of Zerodha Coin.

Step 1: To invest through Zerodha Coin, you will first need to create your account on Zerodha. If you are having any kind of problem in creating your account, then you can also take help of Zerodha customer support. To create an account, first of all go to https://zerodha.com/open-account and create your account.

Step 2: After creating an account, the home page will open in front of you. At the top, you will see a search box, search by writing the name of any plan you want to buy.

Step 3: After selecting a mutual fund plan, you will get all kinds of details related to some plans. In this, you will also see the minimum investment money according to the plan, you have to select it accordingly.

Step 4: After this you have to choose the option of 'Buy Direct'. After this it will ask you how to buy. yhaan minimum investment will be visible to you, select it and after that your order will be placed.

Step 5: You can also invest through SIP if you want. Here you will see the option of 'Direct SIP' which you have to choose and you can set SIP. After ordering, you will get an email and SMS, which will contain all the information related to your investment.

How to invest Groww App Mutual Funds?What is a Mutual Fund

The Groww app is another very popular platform for buying mutual funds. One can easily invest through this. Groww app has a whole team that helps you get good returns. Here you are given options for medium, low and high investment. Not only this, you can also invest here through SIP. The special thing of this app is that you can track your investment here, and can see that your money is being kahaan. Here you can start your mutual funds investment with very little money.

Step 1: First of all, install the Groww app from Play Store. After filling the required information, you will successfully create your account in it. While registering in this app, you will also be asked for PAN card number. Therefore you must have a PAN card.

Step 2: After this you have to link any one bank account on this app. Whenever you invest your money in a mutual fund or redeem your friend, your money will be returned to this account.

Step 3: After entering the bank details you have to upload an image of your own. After this, you have to upload your own 5-second video for verification. You do not need to say anything in this video. After uploading the video, some documents will have to be uploaded for verification. Upload any documents you have from the requested documents. After this, you will get the option to sign digital. After digital sign, you have to click on the button yourself, and your account will become successful. After this, you have to wait for 1 to 2 days and as soon as all the details are verified for account verification. After this your account will be ready to invest in mutual funds.

Step 4: Within this app you will see the option of hand pick 'Hand Picked' collection. In this category you are shown Mutual Fund in 6 categories. In this also you can make your choice

Step 5: To invest in mutual funds, you have to open this application. After that you will see a search box above, you have to search the Mutual Funds plan according to your own.

Step 6: After selecting the investment plan, you can learn more about the fund and then here you will see the 'Invest Now' option that you have to choose.

Step 7: After doing this, two options will be open in front of you, 'Monthly SIP' and 'One-Time' if you want to make monthly investment. So click on Monthly SIP and if you want to invest one time, then click on the one time option.

Step 8: After selecting your amount, you will see the option of 'Proceed', after that you fill all the remaining information and then click on confirm and pay. After 1 to 2 days of payment, your investment will be confirmed and details will be sent to you via email or SMS.

How to invest in Mutual Fund through SBI?What is a Mutual Fund

The easiest way to invest in mutual funds by SBI is SBI invesTap app. You can easily invest money in Mutual Funds by using it. Follow the steps given below to invest in SBI invesTap:What is a Mutual Fund

Step 1: First of all you download the SBI invesTap app. You can download it from here.

Step 2: After downloading, you select the 'New User' option and create your account.

Step 3: After you have created an account, create your new portfolio with the 'New Folio' option and then select the 'New Investment' option.

Step 4: On the next screen, you select 'Direct' in 'Advisor Details' and then select the fund you want to invest in.

Step 5: After choosing the fund, you will have two options: Growth and Dividend. In this, you can choose 'Growth'. Learn more about Growth and Dividend Funds from here.What is a Mutual Fund

Step 6: After this, you choose one of Lumpsum or SIP and you will get invested on payment. What is a Mutual Fund

Is investing in mutual funds right?What is a Mutual Fund

Yes, if you want to invest for a long time and not if you are expecting to make a lot of money in a very short time. Along with this, it also matters which fund you are investing money in. If you invest money in a fund that is being managed well, then a mutual fund can give you very good benefits.
What is a Mutual Fund? Know which mutual fund is the best? What is a Mutual Fund? Know which mutual fund is the best? Reviewed by Shubham Jadhav on December 25, 2019 Rating: 5

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