The newbies in the investing world might think that it is difficult to invest in mutual funds. How can I choose the right platform and then select high-returns generating mutual funds? It’s not as tough as you think and after reading this blog, you will get your answer.
What are Mutual Funds?
Firstly, let’s understand what mutual funds are in simple words. Suppose 5 people in a group want to buy a video game that is very expensive and they can’t afford to buy it individually. One friend gave an idea to pool the funds and then buy it. Similarly, in mutual funds, various investors’ money is collected by the fund house and then the amount is invested in stocks or bonds which are difficult to buy or analyze by inexperienced investors.
You can buy a video game by going to any store, but the question arises where can you invest in mutual funds?
Follow these Steps to Invest in Mutual Funds
Choose a Stockbroker
The first step is to choose a stockbroker or a mutual fund distributor which is registered with SEBI. Just visit the SMC Global Securities website or download the SMC ACE App from Playstore/ Appstore. Open the free demat account in a few steps by giving your details like name, email, mobile number, and city. Fulfill the KYC requirements and you are ready to invest.
Know your Investment Objectives and Risk Appetite
After opening the account with SMC Global Securities, the next step is to know your investment objective and risk appetite. Are you investing for a short period or a long period? Are you looking to invest for your child’s education or for your golden years? After finding your answers, know how much risk you can take on your money to create wealth.
Select from Different Types of Mutual Funds
For each objective or risk appetite, there is a mutual fund available on the SMC. For income generation through high-risk, you can explore equity funds. For a slightly safer bet, you can invest in debt funds or a balance of both through hybrid funds. You can also explore the commodity section on the SMC Website to invest in gold funds.
Check the Key Parameters
Analyze some key parameters of a fund such as past returns, fund ratios, expense ratio, fund manager details., etc. to know how much risk and return potential it holds. You can also check the rating of a fund for easy analysis. To stay updated with the top funds, read the SMC Global Securities Blog.
Choose from SIP or Lumpsum
You can invest in mutual funds either through SIP or lumpsum. On the SMC Website, you can visit any fund and use the calculator to know the estimated returns. You have to select the amount and investment horizon and you will get the final amount in a click. Finally, pick the one method that suits your investment objective and budget.
Pay and Invest
The final step is to buy the units of a mutual fund by clicking on the “Invest Now” button. The amount will be deducted from your linked bank account and you will get the units at the specified NAV. On the SMC ACE App, you can easily track and review your investments to know how it is performing.
Conclusion
Investing in mutual funds is very simple for all new investors once they find a right stockbroker like SMC Global Securities. All you need is to know your reason for investing and then select a fund by analyzing it. Open the account now on the SMC ACE App and invest in SMC Mutual Funds to fulfill your dreams like a pro.
About the Author: I am Sheetal Goel, working as a content writer at SMC Global Securities. I hold 5+ years of experience in financial research and writing. As an Economics graduate and MBA (Finance), I possess the right skills to add value to my work and make finance easy for the readers.
