First of all, you have to decide what is the purpose of your investmentHow much you can invest and how long you can remain in it. If you have to invest for a year or two, then there will be a separate mutual funds for it. If you have to invest for 5, 7, 10 years or even more, then there will be other mutual funds for it.
It is clear that the choice of the right mutual funds depends on what your investment period is. For example, if you are investing for a short period, you can choose debt funds or liquid funds. On the other hand, if you are investing for a long period, then equity mutual funds will be right for you.
Return is getting more than FD- According to the data given on Moneycontrol, investors in smallcap equity mutual funds have received more than 10 percent returns in the last one month. At the same time, if you see returns on FD, it is only 5 percent.
What do we do now- In such Systematic Investment Plan (SIP) gives you the convenience of making regular investments in mutual fund schemes. Experts call it the most effective way of investing in mutual funds. To start investing in SIP, certain conditions need to be met. They are mentioned below. SIP should be started according to the type of scheme, its performance, portfolio and its goals. KYC has to be completed before starting SIP. It should always be updated. Investors can start SIP in both offline or online methods.
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Investors can also make lump sum investment along with SIP instructions. -SIP has to start again after making any changes in SIP Instruction. For this, the whole process may be required to be done again. The content of this page is courtesy of the Center for Investment Education and Learning (CIEL). Contribution of Girija Gadre, Aarti Bhargava and Labdhi Mehta.
You can start sitting at home-SIP The way to start offline, for this, the investor needs to fill a form. It can be obtained from the fund house. There is also an option to download it from the website of Fund House. In this, an auto debit NACH Mandate also has to be filled.
Apart from this, there is a need to apply a copy of the canceled check with KYC documents. These KYC documents include evidence of address and identity. These documents can be deposited in the Investor Service Center or Branch Office of AMC.
Online way SIP can also be started in online way. These options are available for this. SIP can be started by using I-SIP facility from the website of Fund House by entering the details of its personal details, SIPs and banks. A URN will be generated when the details are filled.
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After this, the investor will need to log in to his bank account. Then they can add mutual funds as a ‘biller’. URN will be needed to enable SIP instructions.
Distributor portal- For online transactions of mutual funds, a mutual funds such as corporate disorder or banks provide a mutual fund distributor portal. SIP can be easily started through these portals. If the bank mandate for auto debit on the portal is already registered, then it can also be used for SIP.
There are many types of transaction portals for mutual fund transaction portal- mutual funds. These include Fund House registrar or portal provided by MFU (Mutual Fund Utility) Platform. SIP can also be started by using these platforms.
It is important to know about NAV-Let’s assume that you invest 10 thousand rupees in a scheme of mutual funds. Its NAV is Rs 200. In this situation you will get 50 units. How? You get 50 by dividing 10,000 from 200. 10,000/200 = 50. You get this unit by investing in the scheme. These units have the highest importance in purchasing and selling.
Now suppose that in a year the NAV increases from Rs 200 to Rs 250 and you decide to sell it. What will happen then? Now you will get 12,500 rupees. This amount will be made by multiplying 50 units by Rs 250. 50*250 = 12500. But one thing has to be focused here. Suppose the exit load at the rate of one percent, then you will now get only 12,375 rupees. Its formula This is: 50 units * Rs 247.50 NAV – Exit Load.
In this way, NAV is the value of the asset of the mutual fund scheme, which is reduced by reducing the liability per unit. NAV reflects the total price of all securities kept with cash. As you saw that its calculation is based on the unit in which all the liabilities are reduced.
If the prices of most securities of the scheme increase, then NAV will also increase. If it decreases, the NAV will decrease. That is, NAV increases with the prices of securities of the scheme. Securities mean both equity and date means. This includes equity shares, bonds, debentures, commercial paper etc.
Overall, if the scheme invests well then it will increase the NAV. That is, the price of investment will increase. If the investment of the scheme decreases, then its NAV will also be affected.
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