Investing in mutual funds is a great option for investors to accumulate wealth and achieve their long time goals. Having a definite goal helps in investing in mutual funds in a systematic manner with a clear understanding of the expectations. People invest in mutual funds to accumulate funds for retirement plans, business ventures, children’s education or emergency expenses. To start investing in the same, it is best to do your research and find out how to invest in mutual funds. Read on to find out how you can begin investing in mutual funds.
What do you need to start investing?
The first thing you need to begin investing in mutual funds is to fulfill your KYC or Know Your Client requirements. KYC documents should include a valid address proof, a valid ID proof as well as your photograph. Your physical presence is also confirmed by In-Person Verification.
You can submit your KYC details online via various portals or through the fund house that you have opted for. Uploading your KYC details may be slightly different with different portals, but the basics remain the same.
Basic Information: To begin the process of KYC, a form has to be filled that prompts you for personal information like name, address, date of birth, etc.
Documents: Once you have filled the form, you need to upload scanned copies of all the required documents like PAN card, address proof, etc.
In-Person Identification: On submission of the aforementioned documents, the fund house will call you and fix a date and time for a video call so that they can confirm your physical existence. You may be required to show your PAN card and address proof during the call.
Aadhar based KYC: Nowadays, the process has become simpler with Aadhar. Instead of manually filling the KYC form, you can simply opt to enter your Aadhaar number and verify it with an OTP. This will simply pre-fill all personal particulars on the form with information obtained through your Aadhar records.
After fulfilling your KYC requirements, the next step is to visit the website of mutual funds company through which you’d like to start investing. Create a new account by entering the necessary personal and bank details. Once that is done, all you need to do is login to your account and choose your mutual fund scheme. If you’re investing via SIPs, simply select the mutual fund scheme and specify an SIP date and submit your request. Voila, you’re done.
Of course, you need to read up on everything about the types of mutual funds on offer and whether you’d like to opt for high-risk options or go for low-risk ones. An SIP is the simplest way to do regular investment. If you’re looking to invest a large, lump-sum amount, then it is better to opt for a financial advisor who can help you diversify your investment. Mutual funds are an excellent way for new investors to begin their investment journey. So get going, you can now start investing in mutual funds.