AZ Web

Invest Your Money Where It Can Be Safe

For an investor, there are multiple options available in the market. One can go for gold, purchase of the real estate, keep an amount in fixed deposit in the bank or just buy some stocks in the stock market. One needs to analyse each of these options keeping his requirements in mind. Every investment has some limitation and some benefit. One needs to see how much risk can he take and how much return he expects. Normally, people prefer to have more return on investment at low risk, but this simply not possible as only those instruments can give more return where the risk is high.

The mutual fund:

A mutual fund is one such option where one can expect a good return at moderately low risk. Here one must note that this instrument is not for short term investment and one needs to give the time to fund so that it can grow. One can invest here in one shot or go for a monthly investment plan. There are an ample number of asset management companies in the market that offer various funds where one can go for direct mutual fund investment. Each of these funds is created, keeping certain points in mind while coming with the new fund offer.

Some important terms:

For those investors who want to invest in a mutual fund must know a few terms of this market. The unit is the first term  that one must know. For every investment, the company offers certain units which have a fixed price at the time of investment. This price is called net asset value or NAV. It is the price of the unit at which it is given to the investor. The folio is another term that one needs to know here. It is as good as an account where the credit and debit are given. The redemption here means withdrawal.

How to invest in a mutual fund?

The process for investment in a mutual fund is very simple. One can either go for direct mutual fund investment or with the help of a broker or broking company.  The investor can use an app or go to the site of the concerned AMC for the investment in a mutual fund. Here the first time investor has to provide soft copies of some of the documents that can help him get the KYC done. Once the KYC is done, he can choose an option and apply for the same online. He can also pay the amount via any of the modes such as net banking or any other payment app.

One can also go for the offline application where he needs to fill the form in hard copy, provide documents and issue a cheque of the required amount. However, the offline mode is not that convenient as the online one, and hence, many of the users prefer to go for the online investment where in a few minutes, one can complete the transaction. In case of SIP also one can go for direct debit from his bank account and hence need not worry for the payment to the company.

Leave a Reply