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A beginner’s guide to investing in mutual funds

Financial experts (and Google) list "mutual funds” as the best investment option. But you'd like to know more? Here’s a one-stop read to get all your questions about mutual funds answered!

If you asked someone, including Google, for the best investing option, you would have gotten a bunch of answers - stocks, PPF, FD, real estate, gold, bitcoin, and so on. But we say Mutual Funds Sahi Hai! Here’s why.

What are mutual funds?

The simplest definition is the one on Wikipedia - A mutual fund is a kind of investment that uses money from investors to invest in stocks, bonds or other types of investment. These investment decisions are made by a professional fund manager (or "portfolio manager").

Pro read:

Different types of Mutual Funds

Why do people consider investing in mutual funds?

There are numerous reasons why people invest in mutual funds to secure their future and dreams. Some of them are listed below:

Funds for all financial goals:

Your financial goals and needs could be long-term or short-term, it could be for tax-saving or creating an emergency corpus. There are different kinds of funds for all these! 

Diversification:

In mutual funds, your money is invested in diverse industries. Hence, if one industry performs poorly, you still have the others to make up for it to achieve the best returns.

Growth potential:

Even a small amount invested in equity today can make you wealthy in the long term that too with a fair degree of predictability. For example, Rs.5000/month could make you a crorepati. This kind of potential for growth is not seen in any other investment option.

Easy to start:

You don’t need a large sum to start investing. You can also choose to make a monthly systematic investment, or a one-time investment to make your payments.

Pro read:

7 reasons why Mutual funds are the best way to start investing 

More Mutual funds than Stock!

How does my Mutual fund money actually grow?

How do I start investing in mutual funds? What all do I need?

There are two ways through which you can invest in mutual funds. The first is directly with the mutual fund company (AMC - Asset Management Company). If you know exactly what funds you want to invest in, can keep yourself updated about the industry and your funds, and have a process to review it at regular intervals, you could pursue this route.

The second and easier way is through Scripbox. This makes your investment journey simple, easy and hassle-free. Here’s how

  • We can help you invest towards any financial goal
  • Our funds are algorithmically selected, so there’s no chance of bias
  • We review the funds every year so you remain invested in the best funds
  • We have automated the investing best practices
  • We serve as a single point of contact with all the fund houses (AMC)
  • We also guide you through a tax-optimised withdrawal, so you don’t lose money to taxes or exit loads

Whichever option you choose, you need to do your KYC. At Scripbox, this is a 100% paperless process. The only additional requirement is a declaration document.

Pro read: 

Why investing with Scripbox is better than going the direct route?

How to get better at investing?

Getting started with Mutual Funds? Here’s how we can help

Invest in mutual funds and achieve your financial goals with ease!

Check out, how to start investing in mutual funds in India

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