How to invest in Mutual Fund??

Investing in it is quite easy and if you invest for long term then you get good returns. But the most important thing in this is that while investing in Mutual Fund, always choose only good and trusted company.

There are many big companies to invest in Mutual Fund and there are many big banks in the country. Some Mutual Fund names are given below - 

  • 5
  • HDFC Bank
  • Asix Bank
  • DSP Mutual Fund
  • Kotak Mahindra
  • SBI Mutual Fund

Apart from this, you can also invest through many types of Android App. Or you can register by visiting their website. At the moment Grow App is performing very well and it has given very good rating by the people. You can download this app from the Play Store. And you can take Mutual Fund from it.

You must have heard the name of Paytm, this is an Indian Payment Company, whose founder is Vijay Shekhar Sharma. You can invest in mutual funds from Paytm's Paytm Money App. It has been downloaded over 5 million times on the Play store. 

Types of Mutual Fund??

As you know the company of Mutual Fund invests the money raised by investors in different shares and companies and on the basis of this, there are many types of Mutual Fund. Let's understand this further

There are mainly two types of mutual funds:-

 1. Open Ended Scheme 
2. Close Ended Scheme. 

Open ended scheme:-

Most of this is invested in a similar type of mutual fund because investors can buy or sell their units at any time. There are few Mutual Funds in open ended scheme which require time constraint. There are also several types of Open Ended Scheme which are given below 

  • Debt Fund
  • Equity Fund
  • Liquid Fund
  • Balance Fund

Debt Fund:-

Such a mutual fund when a government bond comes out or is given as a loan to a private sector. This reduces the risk of risk even if the returns are low.

Equity Fund

People like to take this type of Mutual Fund because it is expected to get good returns. But in the short time you will not be able to earn good returns from it because this type of Mutual Fund gives good returns in the long term.

Mutual Fund's company invests money from Equity Fund directly into the share market. There are many stock market experts who have an accurate idea of ​​which company will earn profit and which company will lose. The company of Mutual Fund does not invest all your money in one company, but invests in small companies in small parts so that even if one company goes into loss, all your money is not lost.

Liquid Fund:-

It almost falls under the category of Debt Fund and its money is spent in the Short Market Instrument for a very short period. These are often for 3 to 6 months and in this you can withdraw your money whenever you want. This gives a little more savings than the savings account, which is around 7%. 

Liquid Fund is very popular among people and it is because of giving good returns in a short time. Which cannot be found in a savings account, because here you can get only 3 to 4% interest. Liquid Fund money is always invested in a small market cap and is largely safe.

Balance fund:-

This type of Mutual Fund is considered quite safe as it is invested by balancing the money. She invests half her money in a share market and half her money in Debt Fund. That is why it is called Balance Fund. Here half the money cannot be spoken because companies invest your money in a very balanced way in the stock market and elsewhere so that you get good returns.

Apart from this, there are many types of Mutual Fund which is based on Market Capitalization. Now in this you have to research which Mutual Fund will be right for you which can give you good returns.

Close ended scheme:-

Under this scheme of Mutual Fund, you cannot always invest in it because you can invest in it only when NFO means New Fund Offer is issued. NFO is issued only a few days before and you have to invest during this period. In Close Ended Scheme, a maturity date is determined and you cannot withdraw your money before the maturity date.

These are also of two types - 
1. Capital Protection Fund
 2. Fixed Maturity Plan

There is a lot of pressure to protect the amount invested in Capital Protection Fund and it is more invested in fixed income securities. It remains open for a fixed period only. Apart from this, in the fixed maturity plan, it is already decided that the money has to be said where to invest and how long its maturity will last. It is invested in Debt Instruments.
How to invest in Mutual Fund?? How to invest in Mutual Fund?? Reviewed by Shubham Jadhav on April 19, 2020 Rating: 5

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