Over the past couple of years, investment in mutual funds has witnessed a steady rise. This has been led by a number of factors, including financial inclusion, better access to banking channels, and the SIP route.
There is also more awareness around the benefits of investing in mutual funds. Mutual funds have the potential to deliver inflation-beating returns. Hence, it is a great way to convert your savings into wealth and meet your financial goals effectively.
From equity, debt, and hybrid to active and passive – a wide variety of mutual funds are today available in the market. You can invest in mutual funds online in a simple and hassle-free manner.
To compare the performance of mutual fund schemes and get the right guidance from experienced professionals, you can invest in mutual funds with Prabhudas Lilladher. Click here to get started.
For details on what are mutual funds and the key benefits of investing in mutual funds, you can check our previous article here.
For a deep dive into Systematic Investment Plan and to understand how it works, click here
In this article, we will cover how you can invest in mutual funds online by:
- Evaluating the performance of mutual funds
- Finding the right scheme for your portfolio
- Following a simple process to get started
Evaluating the performance of mutual funds:
Mutual funds are a great way to get started on your wealth creation journey. But different mutual funds have different investment objectives. This determines the asset allocation, risk, and performance.
So, it is important to evaluate its performance and ensure that it is aligned with your long-term financial goals.
Compare data:
You can start by comparing the performance of the fund to the performance of its benchmark. A good mutual fund should outperform the benchmark in the long-term. You should also compare the performance of similar funds in the same category from other asset management companies. It is important to check whether the fund’s returns are consistent over a longer period of time.
Read the Factsheet:
Every mutual fund scheme has to publish a monthly factsheet. It is easily accessible on the respective AMC’s website. You can study the factsheet to get an overview of the fund, its investment objective, risk, NAV, and portfolio details. Remember that a good mutual fund doesn’t deviate from its investment objective – in terms of allocation and risk.
Track Record:
Besides the performance of the fund, it is equally important to assess the experience and long-term track record of the fund manager.
With the help of these factors, you can get a good idea about the performance of mutual funds.
To get access to a research-backed list of Top Performing Mutual Funds, across categories, you can get in touch with PL’s qualified professionals. To invest in mutual funds with PL, click here
Finding the right scheme for your portfolio:
Besides evaluating the performance of mutual funds, it is also important to assess whether it is the right fit for your portfolio.
For this, you should first identify your investment objective and financial goals. Education, marriage, purchase a house, car, or create a retirement corpus – these are a few examples of short term and long term goals that you may have.
Along with this, you should also identify your investment horizon and your risk appetite. And lastly, analyse what your portfolio requires – in terms of asset allocation or diversification.
On all these fronts, you can seek guidance from the qualified experts at PL. At PL, you can select from different categories of mutual funds such as high return, tax saving, top companies, and much more. Click here to invest in mutual funds with PL.
Following a simple process to get started:
You can invest in mutual funds via a systematic investment plan (SIP) or through a one-time lump sum method. The primary difference between the two is that in a lump sum route, you have to invest the whole amount in one go and in a SIP, you can invest a fixed amount, periodically, in a particular mutual fund scheme. You can make use of SIP calculators to determine the amount and periodicity of investment in a mutual fund scheme.
Regular SIP, Top-up SIP, Flexible SIP, and Perpetual SIP are some of the key types of SIPs that you can opt for. Read our blog on SIPs, to know more.
As you know, there are several categories of mutual fund schemes available today. Choosing the right mutual fund scheme requires a sufficient understanding of the product and the risk and rewards that come with the particular product. So, you should seek advice from an experienced professional before you invest in mutual funds.
To get access to a wide range of mutual funds and the right guidance, you can invest in mutual funds online with Prabhudas Lilladher.
Just follow these steps:
- Open an account with PL. It is a completely free and paperless process
- Next, select Mutual Funds as a segment preference
- Fill the risk profiler-cum-asset allocation questionnaire
- Select a fund that aligns with your financial goal, risk appetite and investment horizon
- Start investing
As a PL client, you can also download the PL DigiMF app, a one-stop solution for all your Mutual Fund investment needs. It enables you to track your investments, access insight-rich reports and performance analysis, and also make online transactions for your mutual fund investments.
For any assistance and guidance, you can also visit the nearest PL office or contact us through:
Direct: +91 22 6632 2351 // Mobile: +91 9820710007 // Email: plmf@plindia.com . Also, to get a better understanding of mutual funds and its types, and to start investing in mutual funds with PL, click here