How to invest in mutual fund

Mutual funds is usually described as a company which receives funds from different investors so that it can use this fund to invest in other investments .e.g. bonds which have a hire chance of earning more profit. When one is starting to invest in mutual funds, a unit holder has to make a decision concerning which portfolio he/she wants to invest in. in other words he/she should decide on the right asset allocation. Assets allocation refers to a way in which an investor determines how to invest with a proper mix of asset classes. They should closely consider money market or debt and the particular security being used. Their a popular rule which claims when determining asset allocation, the investor should keep a certain percentage of his portfolio in debt instrument.

Picking the right fund to invest in is the second important consideration. The recommended way of selecting is to choose and investment based on their consistency in return and investment philosophy. An investor should also keenly consider the following, the set goals, the period for investment, the level of risk the investor is willing to engage in.

With a clear option in mind, an invest can log on to the appropriate website fill the application form and send the money through a cheque or transfer thorough the bank. By this simple strategy, you would have invested in mutual funds. It is worthy to note that investing alone cannot serve the required purpose it is very important that an investor keep track of how his/her investment is performing. For those investors who don’t have sufficient experience, they can hire a professional advisor who will be offering advice concerning the performance of the investment.

An investor can invest in mutual funds through either online or through an offline platform. The following is how they should invest in different platforms

Investing Online

You should visit the website and register for online transaction service. During this phase , you will have to provide necessary information e.g. Folio number , mobile registered with the folio number , and email id. The F-pin will then be generated and sent to your email and on the mobile registered with the folio. You will then use this F-pin to create a user ID and your password. Lastly you will login using your password and user ID and start investing.

Investing offline

When investing offline, you will first contact an agent of the mutual fund or a distributor. This person will issue you with an application form. You will fill this form by providing the necessary information which includes: address, name, mobile number among others. After you have filled the forms in the right manner, you will have to attach copies of relevant documents and also the cheque before submitting them to the distributor or through agent of mutual funds. The distributor or agent will then send the relevant document to the mutual fund company. The concern mutual fund company will then allocate you a folio number for the particular investment and issue you an account statement.