InvestorQ : What is the procedure of starting trading in Mutual funds?
Aastha Awasthi made post

What is the procedure of starting trading in Mutual funds?

Anushri Vasa answered.
2 years ago
Here’s a detailed guide on how to buy mutual funds:

The first thing that you need for investing in or buying mutual funds is a D-mat account. D-mat account opening services are offered by almost all the banks and other stock brokers.

Once you have a d-mat account, it all becomes easy. However, you should decide on a few things before you buy mutual funds:

Your risk-appetite, as this will help you to choose from a suitable mix of debt and equity and decide among the available funds.

Your investment horizon, this means for how long you want to stay invested in the mutual funds, because some funds might not perform well in the short-run and you are looking to invest for short-term, then you should avoid such fund.

Your investment installments and base investment, this means that how much money you are willing to put in the investment and then you should decide the right fund.

Visit the mutual funds' section of your d-mat account. Login and then click on Place order, you can also choose to call your broker.

Select the fund or AMC in which you want to invest.
Select the desired scheme under your preferred AMC.
Specify the amount and interval of your investment.
In case you have opted for a Dividend scheme, you can choose from the Payout or Reinvestment options.
Now, when it comes to selling your investment in a mutual fund, do proper research and make sure that you are selling at the right time. Also, check if any exit load is applicable in case you are selling your mutual fund before a specified time.