What is the process of investment in mutual funds?
A mutual fund is an investment vehicle that collects money from multiple investors to invest in a variety of financial securities such as stocks, bonds and others. These are a popular choice among investors and offer benefits such as professional management, affordability, liquidity and diversification. It provides diversity or access to a broader range of investments than an individual investor could afford alone.
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| Scheme Name | 1-Year Return | Invest Now | Fund Category | Expense Ratio |
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| Axis Nifty 50 Index Fund | +32.80% | Invest Now | Equity: Large Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest Now | Equity: Large Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest Now | Equity: Large Cap | 0.25% |
| Axis Nifty 500 Index Fund | — | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
Process of investment in mutual funds:
Investors can invest in mutual fund schemes using online platforms or fund institutions’ websites. You can also access mutual fund transactions through mobile apps provided by AMCs or RTAs.
Individuals can invest in a mutual fund through an AMFI-registered distributor. This distributor could be an individual, a bank, a brokerage firm, etc.
An investor can also visit the local mutual fund branch office, designated Investor Service Centres (ISCs), or Registrar & Transfer Agents (RTAs) with a completed application form, relevant documents and a cheque or bank draft.
Factors to consider before selecting a mutual fund category:
The investors should determine their financial objective and investment horizon. What is your goal for investment? Whether you are planning to indulge in a dream vacation or aiming to purchase a property, recognising your goal offers the compass for selecting the most suitable mutual fund.
Assessing the timeframe for your investment tenure is also important. Understanding and assessing your risk tolerance is also critical. It is also important to consider the liquidity of the mutual fund, which offers the ease and speed with which you can buy or sell units of a mutual fund.
Another factor to consider is to understand the investment strategy to learn about the approach and philosophy adopted by the fund manager. Choose direct plans of the mutual fund that allow you to invest directly without any intermediary. Additionally, check the expense ratio of the mutual fund, which is charged as an annual fee for managing your money.
Read all the necessary documents that will tell you everything about the fund, including its investment objective, risk profile, and fees. Last, make sure the fund you choose complements your current investments and helps you meet your financial objectives.