Investors are getting smarter and prefer to invest in mutual fund schemes to earn more profit on their investment.
In India, there are many companies. Some of them are top performers:
- Franklin Templeton Fund
- Motilal Oswal Multicap
- SBI Bluechip
- ICICI Prudential Bluechip
- L&T India Value
- L&T Tax Advantage
- ICICI Prudential Equity & Debt Fund
- SBI Magnum MultiCap Fund
- DSP Equity Opportunities Fund
There are many ways to apply for schemes. Most of the companies have recently introduced online application method. They have directly tied up with most of the major brokerage houses like ICICI to apply online for the schemes.
If you have an online share trading account, you can apply online for mutual funds. For these investments, they have a separate section. Go to the page and transfer funds from your bank account to the investment section of the online trading account.
You can then select the schemes in which you want to invest and choose the amount for which you want to invest. After deciding these details, you can apply online for mutual funds. For the current date, an online account will process your application and the units will be allocated to the prevailing NAV.
The fund will also be credited to your online account and you can redeem the scheme at any time on the trading website. You can also invest via mutual fund broking firms, mobile apps, etc.
You should do some primary homework -why you are investing, identify your financial goal, how much time you need, how much risk you must take, etc.
However, you should do some necessary homework before arriving here. First, ask yourself why you are investing in mutual funds. It will help you identify your financial priorities.
First of all, you should find out how much time you need to achieve those goals. Second, you need to figure out how much risk you must take to achieve those goals.
Select your mutual fund schemes according to your financial goals
Debt mutual funds: As soon as these basic facts are revealed, you will choose your mutual fund schemes. As a rule, debt mutual funds should be preferred to achieve short-term financial goals of less than three years.
You can also choose debt mutual fund schemes that match your investment horizon. For example, to park money for a few months, you should select an ultra-short-term plan.
Equity mutual fund schemes: To achieve your long-term financial goals, you should consider investing in equity mutual fund schemes. The long term goal should be at least seven years away.
Equity is perfect for pursuing long-term goals because it has the potential to deliver higher returns over the long term than other asset classes.
Hybrid equity funds scheme: You can consider investing in conservative hybrid equity funds for the medium-term goals of three years. You might consider investing in an aggressive hybrid scheme for a five-year purpose.
Note: Always choose a plan with a consistent record of performance. Keep an eye on your investment, as well. You should review their performance at least once a year in relation to their category and benchmark.