Here is everything you should know on how to open a Mutual Fund Account, Login, Wealth Investment & Rewards.
If you’re looking to open a Mutual Funds Account, then you’re in the right place. We will take you through a step by step process of what a Mutual Funds Account is, and how to open one. Don’t worry, it is quite easy to accomplish.
Buying a Mutual Fund simply means you’re pooling your money along with other investors. It works by you buying units or shares of the funds. It grows as more people invest, and the fund issues new units or shares.
OPENING A MUTUAL FUNDS ACCOUNT
To open a Mutual Funds Account, you need to identify and select the right Mutual Fund Scheme for you. You achieve this by assessing your risk capacity, investment horizon and also knowing your risk tolerance.
It is quite easy to invest in the fund of your choice by visiting the nearest Mutual Funds branch office to you. Or even, through a registered Mutual Funds distributor.
To open an account, you’ll need to complete the KYC (Know Your Customer) process. It involves you providing certain basic documentation. This includes an identification card, proof of address, photographs, and some additional documents required by the office or distributor. This is mainly for people doing it for the first time.
You will also be required to fill an investment application form. You may also be required to issue a cheque from your bank depending on where you decide to open the account.
If you decide to apply online instead;
You will be required to follow the instructions provided on the website, make a payment online and submit it. Some fund organisations make the KYC process easier for their customers by offering video options, after which you can generate your username and password using your email address before you can start investing in Mutual Funds of your choosing.
Note that you can start investing once the registration process is complete.
Also, make sure that your mutual fund investment depends upon your financial goals and needs, as well as your investment horizon and risk appetite.
How To LogIn To Mutual Fund
Logging into a Mutual Fund account is quite easy, that’s if you are an already registered member. If not, you would be directed to register.
If you are registered, some websites would require you to either login with your PAN No. or using your email address. Typing in your PAN No. will generate an OTP which you’ll be required to key in to gain access to the account. Using your email address would only require you to type in your password and then click Login to gain access.
If you’ve forgotten your password, all you’ll need is your email address to generate a code to create a new one.
Making A Mutual Funds Wealth Investment
Note that Mutual Funds help you invest in a diverse group of assets through one purchase. It is also traded through a brokerage account. It is a popular way to invest for longtime goals like retirement.
After starting a Mutual Funds or Brokerage account, follow these steps to invest;
1. Research the mutual fund you want to buy. You can find information on the research section of your account. Take a look at the expense ratio (recurring fees), and any load fees (buying or selling fees). You can also seek second opinions by trustworthy agencies.
2. After your research, if you’re sure of your investment, note the name and ticker symbol for the mutual fund. Enter the ticker symbol in the trading tool. Most funds have a minimum investment amount. However, exchange trader funds (ETFs) have no minimum. ETFs best suit new investors.
3. Since Mutual Funds Trades are not instant, you have to wait for the trade to execute. They happen once per day after the market closed. Trades are based on asset value recalculated daily. You’ll see it in your investment account once the trade goes through. The value of the trade will update daily.
4. Since mutual funds are really for longer term investments you might not want to check on your portfolio daily. They require a minimum Investment period to sell without fees.
What you should count on is result of your Investment in the far future (after years of investing). Remember to always invest with caution as the value of mutual funds can go down.
Mutual Funds Rewards
The primary reward of a mutual fund is its potential to give back returns on investment. You are able to generate income from your mutual funds investments. You can earn interest and dividend payments depending on the type of Mutual Funds you own.
Selling shares within your mutual fund can also earn you a return on investment.
Also, diversifying your assets decreases the chance of losing money which is a good reward.
Other rewards include management of your assets by a Fund Manager (investment adviser).