In India how to invest in mutual funds
Before investing in mutual funds, an investor should decide his or her mutual fund goals

The time frame is an important factor to consider before you investing in mutual funds.
Plenty of options are there in India when it comes to choosing the right investment venue like shares, bonds, and bank deposits. However, many people choose mutual funds because of their well-regulated structure and potential for high returns. A great advantage of picking up a mutual fund to build wealth is that it offers different types of schemes with varying investment objectives. Mutual funds can be a good way to begin your investment journey. But do you know how to invest in mutual funds? We help you to learn the right way to invest in mutual funds.
Decide your mutual fund investment goals
Before investing in mutual funds, an investor should decide his or her mutual fund goals. If you know why you want to invest in mutual funds, you can choose the right scheme based on your objectives. Some people choose this option to grow their money while some others prefer it to increase their investments. A fund manager can easily choose the best scheme for you if you list out your financial goals to achieve them. So, decide your investment objectives before you choose the mutual fund scheme.
Decide the time frame of investment
The time frame is an important factor to consider before you investing in mutual funds. An investor can earn better returns if he or she keeps money in the market for a longer time. Always try to invest your money in mutual funds for minimum of five years. The period is an important factor to consider for deciding the returns on your investment.
Check the transaction fees
Many people are hesitant to invest in mutual funds considering their investment fees total or expenses ratio. If you hire the service of an investment advisor to manage your investment, you need to pay a fee for their services. The skilled financial advisor manages your money to increase your returns. So, they charged a SEBI approved charges, say 1.5% plus GST of the invested assets as their fee.
Consider the past performance of the fund
Investors need to check the past performance of the fund they would like to invest in. They need to check how much return has the fund they would be investing in has generated in five or ten years of time. You can also consider checking the highest amount of return generated and the fund’s performance during the time of recession to get a complete picture of the fund.
Know your schemes
One of the most attractive features of mutual funds is that it offers a plethora of schemes. A novice investor may find difficulty to choose the right scheme among them to fulfill their financial goals. If you have an idea about different mutual fund schemes, it helps you to choose the right plan based on your goals, risk profile and investment horizon.
Know the fund manager
Check the performance of your fund manager also before you invest in a particular mutual fund scheme. He knows how to implement the investment strategy of your fund and manage your portfolio. The performance of your fund mainly depends on the selection of your fund manager. An efficient fund manager can manage the risks for your portfolio and maximizes the returns.
The service of a mutual fund advisor
Consider hiring the services of a seasoned advisor if you have plans to invest in mutual funds, especially if you are a new investor. As qualified professionals, advisors can easily understand the objectives and nuances of funds and help you to choose the right scheme. Advisors offer to sell recommendations if the fund does not perform well by tracking its performance.
Mutual funds are the most preferred investment choice in India these days, but not many know how to invest in it. Invest in the mutual fund scheme may come with risks, but it can give you better returns in the long term. Remember to check the performance of your fund from time to time and act accordingly to earn high returns.
That’s why Comparte Investment team asks do you have “Nivesh Ki Aadat”.
With this one can say “Mutual Fund Sahi hai”, so let me do Nivesh
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