Your simple guide to mutual fund investings

How to Invest in Mutual Funds: A Beginner's Guide | Bankrate

Mutual funds are an investment option designed to make investing much easier. If not for mutual funds, you will first have to understand your investment needs, then do thorough research and market knowledge in selecting stocks and other securities, and pick the right time to buy them to create a portfolio of your own. Not only that, but you will also need to monitor your portfolio regularly and make changes whenever required to ensure your investment is going smoothly. But this could be a lot of work, especially if you are a beginner. That is why mutual funds could be of great help. Let us learn all about mutual funds and see how you can easily invest in one. 

Start by figuring out your investment needs

Every investment is personalized, and they work better if you invest according to your needs. That’s where you can start your investment journey. The first thing to figure out is your investment goal. This could be anything ranging from protecting a corpus for a month to creating a retirement corpus from scratch. Such a goal comes in handy when you are choosing a fund as well. For instance, if you are trying to keep your fund safe, you may choose a more conservative option.

One more factor that is extremely important here is your risk appetite. This is basically the amount of risk you can afford to take. You must have a clear understanding of this as well before you move on to the next step. `

Choose the fund that suites you

Once you have a clear idea about your goals, you may now know the type of mutual fund that you want to invest in. But even then, there could be a plethora of options to choose from, making your life harder, especially if you are a beginner.

But fret not, the best way to approach this is by filtering down the options till you find the fund of your choice. 

For instance, let us suppose you want to keep your investments safe and, at the same time, want some appreciation too. Equity funds are aggressive, and debt funds are too conservative hence, they may not match your horizon. But then you could further filter it down to hybrid funds where there are both debt and equity elements. The fund tries to create a balance as well. 

Now, there will be options to choose from within hybrid funds as well, but you can do the same by researching each more. 

Setting up your account

Once you have a mutual fund in mind, it is time to get your account set up. If you are thinking about direct investments, you could go to a fund house website. Otherwise, you could try a broker website. A broker website could make investing easier, but it could come with a higher fee.

To get you ready for investment, you may need to complete your KYC process. You will need your identity and address proof, along with your PAN card, for this. 

Once that is that you may navigate to the fund you have chosen above, choose the investment amount and start investing. Your investment will be ready in a few days. 

If you have chosen to invest through SIPs, ensure you enable autopay options as well for the best efficiency.


The above steps can help you get started with mutual fund investing. Ensure you do your own research in each step to ensure better results. 

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