Financial Awareness Level
How to Invest in Mutual Funds?
Mutual funds are an excellent investment option for individuals looking to grow their wealth while diversifying their portfolio. If you are wondering how to invest in direct mutual funds or how to open a mutual fund account, this guide will walk you through the process.
How to Open a Mutual Fund Account?
Before investing, you need to open a mutual fund account by completing the Know Your Customer (KYC) process. Here’s how:
1. Choose an Investment Platform – You can invest via an Asset Management Company (AMC) website, bank, online investment platform, or mobile applications.
2. Sign up - Register on the platform by providing basic details like name, email address, and phone number.
3. Complete KYC Verification – Submit your Aadhaar, PAN, address proof, a photograph for verification and bank details to get verified.
4. Link a Bank Account – Ensure seamless transactions for investments and withdrawals.
How to Buy Mutual Funds?
Once your account is set up, follow these steps to invest:
1. Select a Mutual Fund Scheme – Choose based on your financial goals and risk appetite.
2. Decide Investment Mode – Opt for a Systematic Investment Plan (SIP) or lump sum investment.
3. Review & Confirm – Check expense ratios, past performance, and risk levels before proceeding.
4. Make Payment – Complete the transaction through net banking, UPI, or auto-debit instructions.
How to Invest in Direct Plans?
Investing in Mutual Fund-Direct Plans can be done in two modes primarily - the offline mode and the online mode.
Direct Plans allow you to bypass intermediaries, reducing costs and maximizing returns. Here’s how you can buy mutual funds directly in the online mode:
- Visit the official AMC website or SEBI-registered platforms
- Log in or create an account.
- Choose a direct plan and invest via SIP or lump sum.
- Track and manage investments through Consolidated Account Statements (CAS).
Conclusion
Understanding how to buy mutual funds and the benefits of investing in direct mutual funds can help you make smart financial decisions. Whether you invest through SIPs or a lump sum, starting early and staying invested is key to building long-term wealth.
Disclaimer:
The information is for general purposes only and not an investment advice. Readers should seek professional advice before taking any investment related decisions.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.
Did you find this article Interesting?
1
2
3
4
5
Recommended For You
Beginner
What Are Asset Classes In Investing?
5 min read
Beginner
What Are Mid-Cap Mutual Funds?
5 min read
Beginner
What Are Small-Cap Mutual Funds?
5 min read
Disclaimer
An Investor Education And Awareness Initiative Visit https://www.hdfcfund.com/information/key-know-how to know more about the process to complete a one-time Know Your Customer (KYC) requirement to invest in Mutual Funds. Investors should only deal with registered Mutual Funds, details of which can be verified on the SEBI website (www.sebi.gov.in/intermediaries.html). For any queries, complaints & grievance redressal, investors may reach out to the AMCs and / or Investor Relations Officers. Additionally, investors may also lodge complaints directly with the AMCs. if they are not satisfied with the resolutions given by AMCs, they may raise complaint through the SCORES portal on https://scores.sebi.gov.in/scores-home/. SCORES portal facilitates investors to lodge complaint online with SEBI and subsequently view its status. In case the investor is not satisfied with the resolution of the complaints raised directly with the AMCs or through the SCORES portal, they may file any complaint on the Smart ODR on https://smartodr.in/login.
