Title: WAYS TO INVEST IN MUTUAL FUNDS
1WAYS TO INVEST IN MUTUAL FUNDs
2 What is a Mutual Fund?
A Mutual Fund is a professionally managed trust
that pools the saving of a group of people and
invests them in stocks, bonds, money market
instruments and other securities. These investors
have a common financial goal and their funds are
invested across distinct asset classes basis the
funds investment objective. Each investor owns
a few shares that represent a portion of holdings
of the fund. The investments in mutual funds
are comparatively small amounts that give retail
investors the advantage of getting their money
controlled by finance professionals. Even if
they are a few thousand rupees of investments,
they are either actively managed by professional
fund managers or passively tracked by an index or
industry.
3- Money earned by investing in mutual funds can be
classified in three ways - Income earned from dividends on stocks and
interest on bonds. A fund pays out all the income
it receives over the year to its owners. - On selling of securities that have increased in
price, the fund has a capital gain. Most funds
also pass the same in form of distribution. - If theres an increase in price of holdings which
have not been sold so far by the fund managers,
this increases the price of funds shares. You
can then sell your share of mutual funds for a
profit. - Out of these earnings, funds will usually give
you a choice either to receive a cheque for
distributions or to reinvest the earnings and get
more shares.
4What are the different ways of investing in
Mutual Funds?
- Now when you plan to invest here are some of the
different ways you can enquire or approach your
investments in mutual funds - Asset Management Companies (AMCs)
- Consult Agents or Brokers
- Banks
- Online Financial Portals
5 Asset Management Companies (AMCs)
- Track a good AMC largely most of them have an
option to invest online. You must first check if
you have an account with the banks they have
partnered with. Then all you have to do is
download a form, fill and submit it with
necessary documents. Once the folio is generated,
you can easily invest online. Also, with other
contact details like address, email address and
telephone numbers also available on the website,
you can also get in touch directly for
assistance.
6 Consult Agents or Brokers
- Typical approach of investing that has been an
easy practice, where an agent turns up on your
doorsteps when called. He will fulfill all
necessary formalities, collect necessary
documents from you, get signatures, compile them
and submit the forms to a mutual fund company. In
that case you pay some commission and the longer
you stay invested, he earns more in that case.
7 Banks
- There are number of banks are deals in mutual
funds. A bank that you are associated with has
your details and can lure your to invest in
mutual funds, they are associated with. You just
walk into your nearest branch and ask them if
they are selling any mutual fund schemes.
8 Online Financial Portals
- Online portals offer great convenience to invest
in mutual funds online and are also amongst the
cheapest mode of investment. Though these portals
dont charge anything upfront, but they collect
commission from mutual fund companies and will be
adjusted to your NAV. Convenience of tracking
your investment and having solutions to all your
investment related queries at one place, makes it
quite a lucrative option to opt for investing in
mutual funds.
9- Learn how to invest in mutual funds and various
benefits of investing in mutual fund from
Reliance Mutual Fund. - Call us Toll Free No. 1800-300-11111 Tel No.
022 30301111 - Click to connect with us on our social
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10Thank you !