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How to start investing in mutual funds ?

Many of you might have many Queries related to How to begin investing in the mutual funds , This article try to Guide you for same . Some of may be wishing to know basic of Mutual funds so we are covering some of those points below -


1 - What is mutual fund ?


in simple word its a scheme designed by the mutual fund Company where the structure of its working is defined , ex. what type of scheme it is , how and where it will invest , What are the parameters of its operations etc . Its a Pool of funds created by Multiple investors for investing in the mutual fund scheme , i.e. different people invest variety of amount , this total fund is managed by the dedicated fund manager & their team . Those are professional manager whose main job is to generate good returns for the money invested . So as investor your only reponsibility is to provide the money for investing . You don't need to track its performance regularly as that is the job of the Financial Advisor / Fund manager . If you have Real experience and knowledge about investing then only you should do it on your own as merely searching on the Google , listeing to all the gurus on tv shows , watching you tubers and beleiving in what ever mentioned will not always help . For any investment the main purpose is generating good returns and not just saving Costs ...


How to start investing in the mutual funds ?



To start investing in mutual funds you need below documents . - ( Individual Investors )

Documents for - Firm / Trust / Non individual investors will be different . The documents here are given as example , There can be changes in it based on the Norms applicable


1 - Pan card / ID Proof ( it can be exempted up to certain amount investment , You can give the other acceptable proof in place of it ) if you are not having it then its better to get your PAN as it will help you to avoid any kind of restrictions which may be applicable in case of no pan .

2 - Adhar card / Address Proof - Any acceptable proof like - Valid driving license / Passport / Bank pass book copy / Electricity Bill / Election card etc can be given for same .

3 - Passport size colour Photo - On the CKYC form

4 - Bank Proof - Valid Bank passbook or statement / Bank cheque copy with name printed of the investor ( Only Saving ac or Individual propertior name acs are allowed )

5 - Valid Email / mobile number / Mother's name / Maiden Name / Filled & Signed CKYC form and self attested Xerox Copies

6 - In person verification by the registrar or Mutual fund distributor / RIA as applicable


This is where you can paste photo and sign - First page


Second page ,


For individual You can Download the KYC form Here -


Kyc can be Done Online and same is provided by various Mutual fund Company Or Visit below link to complete your Mutual fund Kyc and Account opening . Its Free !

What are the option to invest in Mutual Fund ?


You can invest One time Lumpsum or Regular ( Monthly / Quaterly / Half yearly / Yearly etc ) as per your choice . The regular investment is known as Sip i.e. Systematic investment plan . For lumpsum or One time investment you need Approx 5000 . Some Mutual fund company may offer lumpsum in less amounts . In case of monthly SIP you can invest from Rs 100 per month to any amount you wish to . Many Fund schemes offer choice of selecting your monthly preffered date . ex. 5/ 10 / 15 / 20 / 25 or any date And so on . You can know the same in advance and choose the most suitable date for you .


For Quaterly / half yearly / Yearly SIP modes the amount can be different based on company . Monthly SIP mode is most popular in India .


Please remember that SIP & Mutual fund are connected . SIP is one of the mode to invest in mutual funds .


Is investment in the name of Minor allowed ?


Yes , You can invest in the name of Minor in most of the schemes along with dedicated plan related to Childrens . The Guardian documents are required to be given And bank Account in the name of minor is need for most schemes . In some cases Guardian bank account are accepted with certain conditions . you have the choice to invest in Lock in or non lock in schemes as per your choice


Is there any Lockin for investments in mutual funds ?


It depends on the scheme you select , But most of the scheme do not have any kind of lock in , Plans like FMP / Equity linked saving schemes (Elss ) /child plans / retirement plans type of funds have specific lock in. ELSS - this is the lowest lock in scheme with income tax benefit under 80c . For any other funds you can redeem or sell your investment any time and get your money back


Is the return's in the mutual funds fixed or assured ?


No in almost all types of funds , As mutual fund invest in the different types of Assets like Equity, debt , Gold , real estate etc the NAV (Net asset value - it is the rate of the scheme for the declared day to buy or sell the units of the scheme ) of the scheme will change as per the performance of these investments . So in any type of mutual fund schemes return's will not be known in advance like Fixed deposits or Bonds .


Should we invest in Mutual funds for short term or Long term ?


The answer to this will depend on the Goal for which you are making investments . If your Goal is such that you must need funds to fulfil it in less time then you will have to select funds with short term view , if your goal is far and have 10-15 yrs to achieve then you can look for schemes with long term view . This is important as you know the period of investment you can select More better schemes to give you the best possible performance



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