You can invest in the equity market via mutual funds. Mutual funds are the best way to ride the equity wave in the market because you don’t have to track stocks daily.
A mutual fund is the best way any individual, with limited market knowledge, can invest in the equity market. A mutual fund is launched by an asset management company (AMC) that collects money from investors and invests it in select stocks on their behalf. For the services provided, the AMC charges investors a small fee called expense ratio. Mutual funds are also called investment funds or managed funds and are currently the most sought-after investment option.
You can open a mutual fund investment via the fund house directly or any broker in the country.
Via fund house- Visit the nearest branch of the fund house you want to invest with and provide the following documents:
- Address proof
- Identity proof
- Cancelled cheque
- Passport sized photograph
These documents will need to be filled accurately along with the mutual fund application form.
Via a broker- A broker can ask you to fill the application forms either online or offline. Most people prefer investing through a broker due to the broker’s experience in the world of investing. However, this is slowly changing to websites that offer the same service as a broker without requiring you to visit any office.
You can invest in mutual funds via websites such as:
- Groww
- Scripbox
Similarly, brokers’ websites too allow you to invest online. A few of these websites are:
- Sharekhan.com
- IIFL.com
- Edelweiss.in