How to Invest in Mutual Funds

Investing in a Mutual fund requires knowledge in market analysis and movement. If you are a newbie, here is a quick start guide for you to invest right in Mutual Funds. Before proceeding with the guide, let’s look at the factors that will help you to determine the type of funds.

Why does age play a role in the investment plan as a factor? As mutual fund investments are subject to market risks. When the age is lesser, it is considered that the investor can take a higher amount of risk as compared to the higher age category.

If the person is earning regularly a good sum of money, he/she can invest in funds that have a higher risk.  Similarly, if the person has a lesser amount of irregular income, he/she cannot invest in high-risk funds.

If the need for liquidity is higher, the returns and risk of the fund increases and vice versa.

Equity funds are designed to give higher returns with higher liquidity and risk. Based on the factors, equity funds are suggested to investors at a young age with higher income. The equity funds provide greater liquidity along with market risk.

Debt funds are majorly into government securities and low-risk funds. These are suitable for aged or senior investors who would like a lower return with lower risk. Debt funds are always considered fixed-income funds. Some also refer to these as an alternate for bank deposits as the scheme is similar to the same with short term investment, while the returns are comparatively high.

To invest in Mutual funds, you require your trading account or a Mutual fund account. If you know market movement and analysis, you can choose the funds based on your income and investment plan. If you need help with choosing the right set of funds, you can get help from your fund manager. Here are the general steps on how to invest in Mutual Funds.

: Open your Mutual Fund account with your DP.

Consult your Fund Manager to choose the right funds for you.

Link your bank account for auto-debit every month.

Activate the scheme and start investing the monthly amount.

Flattrade is one of the leading brokers who offer Mutual Funds accounts at the best brokerage. Also, you get your dedicated manager who helps you with choosing and maintaining your portfolio.