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Mutual Fund Basics

Those who are new to fund investing need to look at these initial steps

I need some clarity on the process of investing in mutual funds. Also, what is the limit of investments and the duration thereof?

There are two ways of investing in mutual funds (MFs). One is that you go to a fund house, choose a fund on offer and invest in it. An easier way is to contact a financial advisor, tell him your needs and how much time you want to invest for and the returns you would ideally want and the risk that you would be willing to take.

He would advise you, after considering these points, the best course of action and help you invest thereafter.

You can invest as much as you want, but you need a minimum of Rs 500. Also, you can invest for as long as you want. When you invest in a MF, it is not like a fixed deposit or a defined term fund. In the current times, open-end funds are dominating and they are always available and can be sold off as well. You can bring out your money within three days of notice and you can invest for up to 10, 20 or even 25 years if you want.

Also See:

Best Equity Funds: 1-Year

Best Tax Saving Funds: 1-Year

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