How to invest in mutual funds online? Lumpsum vs SIP ?

 Before investing into mutual fund some points you should know :-


  • You first understand your risk taking capacity,how much risk you can take according to your risk profile. What is your age or do you have children or you are on your 20's.
  •    Compare funds based on their performance and asset allocation. And where they invest their money.
  •    You must see your funds reputation in the market like who is the fund manager and his experience in the industry.
  •    Diversify your investment in different asset class to ensure best result from your portfolio.

Mutual funds can be divided into 4 major categories:-

  1. Bluechip funds:- These funds invest your money to large companies like reliance industries,HDFC, ITC etc. There is little risk in bluechip funds as they invest your money big giant companies. You can expect 12% return from them. If you don't want to take any risk so it can be best for your portfolio. Investment horizon must be 5 years or above.
  2. Multicap funds:- These funds can be best for your portfolio as they invest in giant companies as well as they have some exposure in small companies also. It depends on situation. Generally these funds can give to 14-15% return. Investment horizon must be 6-7 years
  3. Midcap funds:- If you take some moderate risk then you must go for midcaps as they invest your money in mid cap companies your fund manager analyse those companies who have potential to be a giant company so risk is quite higher but you can easily get 15% return. Investment horizon must be 7 years or above.
  4. Small cap funds:- These funds can give you 18 to 20% annual return but risk is higher. You investment horizon must be 7 years or above. If you can take risk and want higher return then you can definitely go for small cap. But before investing into small caps you must know that they are very volatile. So you must know your risk taking capacity.


 Now the main question is how to invest in mutual funds online?


You can easily invest in mutual funds through online or offline. If you follow offline procedure then you must visit your nearest mutual funds office. Or if invest through online then it is very simple. There are so money apps available in the market. Just fill up your KYC and link with your bank account. And it is safe because it is regulated  by SEBI. 
So lumpsum invest or SIP which is best for you?
 If you are a beginner then SIP (systematic investment plan) will be best for you. As it deducts money every month from your account automatically and invest in mutual funds. Or if you are salaried employee then SIP can be best for you. If you have enough money and have some knowledge then you can invest lumpsum money to the mutual funds as it known as one time investment. For more updates click this link http://mudrainvest.com











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