Increasing awareness and the lacklustre performance of traditional investment options has been driving consistent growth of the mutual fund industry in India. Mutual funds have become the primary investment option for many Indian households. Increased transparency, convenience and improved returns have endeared mutual funds to the common man.
Before investing, it is important to understand how mutual funds function. Mutual funds are financial instruments that pool in money from a set of investors with similar return expectations and risk tolerance. The accumulated corpus is invested in various assets such as stocks, bonds and fixed-return instruments by professional fund managers. Each investor is allotted units of the fund in proportion to their investments and has to share the profits and losses in the same proportion. The fund house charges a fee from investors, known as the expense ratio, to manage the portfolio.
One can either invest in a mutual fund directly or through an agent. The mode of investment is an important factor to consider before investing. There are a few other factors to consider before parting with a single penny. Let us take a look before understanding the mode of investment and how to invest in mutual funds online.
Online investment in mutual funds is a simple and hassle-free process through Finserv MARKETS. After registering on the portal, you have to follow just four easy steps.
You will have to be ready with documents that establish your identity and address proof. For identity proof, you can use one of the following documents: PAN card, Aadhar Card, Passport, Driving License or Voter ID.
For address proof the following documents can be provided: Aadhar Card, Passport, Driving License, Voter ID, Electricity bill, Gas bill, Telephone bill and property ownership papers such as house purchase agreement, society registration documents, bank loan agreement or Ration card.