Investing in Mutual Funds

 

1. Where can you purchase mutual funds - banks, brokerage houses, third party distributors
2. Fill out form - you will need your PAN number for that
3. Get receipt/acknowledgment as proof that you have invested in the fund
4. Fund House will send you regular statements on your status and NAV of your units
5. You can choose to invest through a SIP scheme - Systematic Investment Plan. Allows you to invest small amounts of money at regular intervals. Helps you avoid market timing and you can enter the market with a small amount of capital rather than a lump sum. You can also set up an electronic transfer directly from your bank through the ECS transfer facility, so you don't have to write a cheque every month
6. How can you educate yourself about MF's - read personal finance magazines like Outlook Money or Money Today or the personal finance sections of business newspapers; may newspapers like Hindu or Business Standard also carry weekly reports on the mutual funds