I am planning to start investing in mutual funds for the first time and have selected HDFC Prudence. Where do I start? How do I apply for this fund? For mutual fund investments, is the choice of broker important?
For a new investor, we suggest investments in a balanced fund. These are funds that have 35 per cent equity exposure which brings in stability to their performance and also insulates the returns from market volatility. HDFC Prudence is a highly rated balanced fund with a proven performance history and track record.
You should invest in a systematic and regular manner in this fund by initiating a systematic investment plan (SIP). This facility is available to you at the time of making the investment. There are several ways in which you can apply for this fund scheme; you can opt to invest through a broker or directly with the asset management company. You can also use third-party websites to make mutual fund investments and even invest directly through the stock exchange if you have a demat account. All these options comes with their own conveniences and do not impact your investments as there is no charge levied on investments barring the demat account fee that you have to pay towards holding a demat account. For mutual fund investments the choice of the broker has little relevance barring the service they offer.