Nowadays our television screens are flooded with mutual fund advertisements. Everybody wants to know about it. As I have discussed the mutual fund in my recent article about what is a mutual fund and its type. Today I am going to discuss various points about how to purchase a mutual fund and how to invest in mutual funds. Where to buy mutual funds. It should be brought online or offline, which is the formalities that have to be completed and all.
How to buy a mutual fund?
This will be the very first question that will arise in your mind that how to buy a mutual fund? Mutual funds can be bought both offline and online. There is various companies available in the market from where you can purchase a mutual fund. All you have to do is before investing in a mutual fund, you should thoroughly research and decide which asset management company to invest in a mutual fund scheme.
Examine different types of mutual funds, their investment objective, and past performance. However, the previous performance cannot be guaranteed that in the future, any mutual fund scheme will perform as it has performed earlier. But yes the chances are less of degradation of performance chart.
Now there are various ways to purchase a mutual fund.
1. Online purchase:
To invest online in a mutual fund, you can invest online by going to the site of a mutual fund asset management company. The names and web addresses of mutual fund asset management companies you can found on the search engine or visit SEBI.
2. Offline purchase:
You can use the services of a financial intermediary to make an offline investment in a mutual fund. These are called mutual fund distributors. You can invest in mutual funds directly by going to the office of the mutual fund company. A bank, non-banking finance company, or personal financial advisor can be a mutual fund distributor.
3. If you have a Demat account with a broker, you can also buy a mutual fund from that broker. In this way, the mutual fund purchased will be deposited directly into your Demat account.
Note: Whether you buy offline or online mutual funds, you can also order a SIP purchase in your form. For this, you can also give your bank details and ask for an automatic purchase.
Formalities for buying mutual funds:
In order to purchase a mutual fund, you will have to fill out a KYC form and provide a passport size photograph along with proof of identity and a copy of the residence address.
Also Read: ULIP vs Mutual Fund
Conclusion
Purchasing a mutual fund is not a big task but finding the best place for investing your saving for a better return is a tricky game. Mutual fund investment is really good and can be proved to be the best place for all types of investors. Put a habit of investment from today and see your future dreams come true. Small investments made in mutual funds can be a huge amount for one day.
Disclaimer: Mutual fund investments are subject to market risk, please read the offer document carefully.
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