How to Invest in Mutual Funds in India?

how to invest in mutual funds in India

Today in this post I am going to share how to invest in Mutual Funds in India? I will be sharing whole process and types of mutual funds, how you can invest your money in mutual funds online with ease so that you expect returns on your investment.

What are Mutual Funds?

Mutual Funds are the best way of investment where you can get maximum returns on your invested money. Mutual funds offers you the most comprehensive and easy ways to create diversify Portfolio for your Investments. Different mutual funds offers different types of benefits and options to handle risk appetite on your Investments.

With Mutual Funds investor can invest in multiple stocks at the same time as Mutual Fund company distributes your money among different stocks so that your risk becomes negligible and out of 100 there are 95% chance of losing your money in mutual funds. Financial experts says that Mutual Funds are the best way of investing and growing your money if you are planning for long term investment.

It is advised to read the the document of the mutual fund before investing because profit and loss are yours.

Types of Mutual Funds?

1. Equity or growth schemes

Equity Mutual Funds are the most risky funds in mutual funds however your money also grows fast and bring you good returns in equity. There are some funds those can bring more than 50% return in six months or one year time frame. There are so many index and tax saving funds those funds can help you reduce your taxes and risk.

2. Money market funds or liquid funds

Money market or liquid funds are are created for those who has low risk appetite person can invest in in liquid funds for short period of time and expect reasonable returns from these funds doors who are saving their money in saving accounts can use this fund as an alternative to get good returns in short term.

3. Fixed income or debt Mutual Funds

Fixed income or debt Mutual Funds are majorly made to invest money in debt and expect a fix income with this fund, people can invest their money in government securities, bonds, debentures these funds are low risk and low return funds, people who have very low risk appetite can invest in these funds and can generate good income, please note that these funds are subject to credit risk.

4. Balanced mutual funds

Balanced Mutual Funds are one of the best funds to invest your money as mutual fund companies divide your investments between equity and debt, they change your allocation on regular basis based on market risk, this is one of the most suitable way of investment with moderate return and low risk, this fund is is is liked by financial experts.

5. Hybrid/ monthly income plans

Hybrid/monthly income plan funds are made for people who are retired or they want regular income on monthly basis these people invest in this plan. The quantity of equity assets are less as compared to balanced fund people who want study income on regular basis can invest. This fund is also called marginal equity funds.

6. Gilt funds

In these funds, funds are invested in government securities, investors preferred these funds because of no credit risk however these funds are highly subject to interest rate risk.

How to buy Mutual Funds?

Guys if you want to invest in mutual funds you just need one app which is Groww App you just need to download grow app using this link and complete the signup process and open Demat account in 5 minutes by uploading your bank details, completing your KYC, and verifying your phone number and email address.

Once your account will be approved then you can direct invest your money in mutual funds or stocks using grow app. I am using grow app for more than 5 years now and this app is really very easy to use and invest, buy or sell any mutual fund or stocks. Using this app you can easily invest in mutual funds online.

You can invest in mutual funds with 2 ways either you can start monthly SIP(Systematic Investment Plan) or you can invest lumsum amount whenever you want to invest. SIP is good for people having fixed monthly income & those who are doing business can invest using lumsum feature.

Note that Mutual funds are subject to market risks so read all the documents before investing and invest your money on your own risk however their is very less chance of loosing money in Mutual funds.



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