A small investment made in mutual funds can also become a huge amount a day. Here we discuss how to invest in a mutual fund-
You can buy mutual funds both offline and online. Before investing in a mutual fund, you should do thorough research and decide which asset management company you want to invest in. Also check the different types of mutual funds, their investment objective and past performance. Here you can read about the benefits of mutual funds. However, past performance can never guarantee that in future also a mutual fund scheme will perform as it has performed before.

You can use the service of a financial intermediary, i.e financial intermediary, to invest offline in mutual funds. These are called mutual fund distributors. You can also invest in mutual funds by going directly to the office of an asset management company or the office of the registrar and transfer agent. A bank, non-banking finance company or individual financial advisor can be a mutual fund distributor.

Online :
To invest online in mutual funds, you can invest online by visiting the site of mutual fund asset management company. By going here, you will have to create your account and create a user ID and password. You have to choose the fund of your choice and tell how much to invest. You can read the types of mutual funds for your information. You can also get help by calling an asset management company. We gave them names and web addresses of mutual fund asset management companies in our previous posts.

If you have a Demat account with a broker, then you can also buy mutual funds from a broker. Mutual funds purchased in this way will come directly into your Demat account.

Buy via SIP
Whether you buy mutual funds offline or online, you can also order SIP purchase in your form. For this, you can also give details of your bank and ask for the automatic purchase. Investing in SIP has many advantages as a small and regular investment in SIP can be done very easily.

Formalities for buying mutual funds:
To buy a mutual fund, you will have to fill the KYC form and provide proof of identity card copy, PAN number and residence address along with passport size photo. before investing in a mutual fund you must have proper knowledge which will help you make smarter, more profitable trades too.

Author's Bio: 

I Manisha, Market researcher highlighting the topic of "How to Invest inMutual Fund" Also, we provide best stock tips and Free Nifty Tips