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mutual fund investment
If you have been working for a few years in India, chances are quite high that you have heard of investing in mutual funds many times. In that past, most of these kinds of investments were driven through agents. It’s a lot different now as you would get to know every bit of information about these investments online and that surely makes your decision easier. If you have been thinking about making an investment, here are a few simple methods:
1. Invest via an AMC: You can invest into a mutual fund by approaching the mutual fund companies directly. Each of the companies provide online facilities to invest from the second investment onwards and thus are able to complete your transaction easily. Sounds good? Well almost. In this process, you have to fill the first form at the office of the AMC, so apart from the first investment; the rest can be done on the internet. The tough end of this deal is if you want to participate in 3-4 different funds, that means you have go to each of the offices and have the first form filled and submitted. So, this investment makes sense only when you are going to invest a big amount of money and over a long period of time too. Plus, you do not really need a demat account for this.
2. Use your Demat account: The most common and recommended methods would be to use your demat account. You can look through all the different mutual funds and easily make your investments. All it would take is a few clicks on your mouse, to choose to invest in the fund of your choice. The only catch would be the charges you have to pay the demat medium you use. The biggest advantage though is that you can have access to all your transactions and details from one place alone. How easy is that?
3. Use the fund directly: Certain funds allow you to purchase mutual funds online, that means not having to go through a broker or source at all. You would have all the possible information you need about the mutual fund along with the performance of the fund over the years. It is a very easy solution no doubt and is a sure option on the long term. You would have lesser commissions to pay and thus is a great idea if you are planning to invest on the long term.
Giving your customer the chance to transact
seamlessly should be one of the top most priorities of every company. The customer
should have total control on how he is buying and should always have every
access to transact through it seamlessly. This is absolutely critical when you
are buying mutual funds too – you need to have complete clarity and be able to
know how you can transact with it at all times.
One of the simplest advantages with IDFC
mutual funds is just that. Here are the many ways you can transact once you
have made an investment.
1. Online transactions: With the internet
boom, one of the biggest advantages that have come by has been the way we
behave online. We want all our information on the internet and that is exactly
what you get with IDFC mutual fund investment once you verify PAN number,
mobile, bank account number and email address.
2. Mobile: We are all addicted to our
mobile phones and it gives us perfect reason to be able to transact through a
mobile friendly website. Track and view your statements within a matter of a
few taps on your phone. You can also get all information you need via SMS too, it
is that simple. These transactions are done with a pre-registration to ensure
security at all times.
3. Phone: The good old phone is a great way
to have your transactions verified too. Individual investors can track their
investments too this way.
The key to having complete control on your
investment is by ensuring you are aware of all the transactional insights and
that is possible when you use a reliable mutual fund like IDFC. Investing your
money into mutual funds is the best investment to make in every stage of your
career.
There are different types of mutual funds that exist in the market today and each of them have different priorities or growth plans and two of the different kinds of funds are debt funds and hybrid funds.
A debt fund is a mutual find that is invested mostly in the safer market like fixed income securities. Examples of these may be bonds and treasury bills, monthly income plans, short term plans, liquid funds and even fixed maturity plans. These are varied across short term, medium term and even long term investment plans and can be scalable across your requirements. These are in most cases planned by individuals who do not want to invest in risky or volatile market. This is a slow but steady return as compared to an investment in the stock market for example.
Hybrid fund
It is a mutual fund investment that is determined by the portfolio that is created with a mixture of stocks. In most cases, this also includes different kinds of bonds too that can varied in a fixed proportion or floating structure. There are mainly domestic or international hybrid categories. These funds respond to market conditions and are passively managed with a fixed life cycle to get into a more aggressive structure.
The biggest difference in both of these equity funds is the location of investment in both cases. A hybrid fund is more balanced as you are investing in both stocks as well as bonds where as in a debt fund, you are restricting your investments to only a fixed income security. It is widely different when it comes to goals and outcomes even though you can see that it is for a different target category when it comes to buyers of both. Based on your requirement, you should settle on either one.
