• HDFC
• 08 Aug 2018
• MF Product

HDFC, Tester

Mutual Funds are extremely instrumental in laying a solid foundation for a financially prosperous and sound future. Essentially, Mutual Funds can be understood as a pool of money accumulated by a large number of people (or investors) like you and managed by a professional fund manager, with the objective of fulfilling a common financial objective.

 

Mutual Funds investment is one of the best investment options for the common man or small investors as it offers them an opportunity to invest in a diversified and professionally managed basket of securities.

 

Mutual Funds invest such accumulated money in various financial instruments such as equities, bonds, money market instruments and other securities. Each investor owns units, which represent a portion of the holdings of the fund. You receive the gains/income generated on the fund, commensurate to their units or holding in the fund. Expenses such as management costs, administrative costs, etc. are deducted to arrive at the net figures.

 

How to Invest in Mutual Funds?

Mutual funds investments is a very easy, convenient and hassle-free process. In order to start investing in Mutual Funds, an investor needs the following:

 

1. PAN Card
2. Bank Account
3. KYC (Know Your Client)

 

KYC or Know your Client is a standardised and easy process to consolidate investor information across various market intermediaries’ platforms such as Mutual Funds, Stock Brokers, Depository Participants and the like. The process is extremely user-friendly, uninformed and can be completed in a matter of minutes.

 

If you have not completed your KYC formalities, the following documents have to be submitted to complete the same:

 

1. A recent passport sized photograph
2. Proof of identity that includes a copy of your PAN card or UID (Aadhaar) or passport or voter’s ID or driving licence
3. Proof of address such as your passport, driving license, ration card, registered lease/sale agreement of residence, the latest bank A/C statement, passbook, the latest telephone bill (only landline), the latest electricity bill or the latest gas bill, which is not older than three months.
   
   

 

After you have completed all the KYC formalities, all you have to do is choose the mutual fund that you want to invest in, and once done; you can instruct your bank to transfer a specific amount every month towards the Mutual Funds investment. You can either opt for the SIP route or the Lumpsum route, i.e. investing a huge sum of money at one go as compared to small, regular amounts.

 

Mutual Funds investment is an easy process to begin with, along with being equally rewarding in the long run.