Investing in mutual funds can give you access to a diversified portfolio of stocks at a reasonable cost. Also, you receive professional management by investing in a fund. Most people invest in mutual funds to increase their likelihood of attaining specific financial goals or planning for retirement. Some funds like Gold ETFs require you to have a demat account. In fact, you can buy and sell mutual funds through your demat account as well. In fact, many brokers give you amazing insights simplifying your investment choices. Thus, you may want to consider brokers like Kotak Securities and other depository participants who offer Demat account services to invest in mutual funds.
Mutual funds are the perfect investment vehicles for every investor, be it a busy or a novice investor. Given the vast number of mutual funds available in the market, how to purchase mutual funds online can get confusing. Here are some easy tips on how to buy mutual funds online.
Buying mutual funds
- Assess your goals and risk appetite.
You may want to identify your financial goals and risk tolerance before selecting a mutual fund of your choice. Before acquiring shares in any fund, it is a good idea to assess your risk tolerance and time horizon.
- Understand the kind and type of mutual funds
Largely dependent on your financial goals and time rising, you may want to know how the mutual fund can work for you. If you are comfortable with volatility and the like to be in it for the long ball, opt for a long-term investment in mutual funds that can not only give you a higher reward but can also carry a higher risk. On the other hand, if you are looking for additional income to fund your current lifestyle, you may want to look at debt funds that typically invest in corporate debt and government holdings.
- Seek professional help
If you are not well versed in mutual funds or if you are pressed for time, you may want to decide whether you would like to manage your investments or hire an advisor. For simple investment needs, you could buy mutual funds on your own. For investors with limited knowledge about investing or lack of time to do the paperwork, Kotak Securities is an excellent option to buy mutual funds.
Selling mutual funds
It is essential to know when and how to sell a mutual fund. Here are some steps that can help you understand how to sell mutual funds online. These are:
- Contact your financial advisor of the mutual fund company
- Learn about the levied fees or charges on exiting
- Understand the number of shares or units you wish to sell
- Offer instructions on how the money needs to be remitted or transferred to your account.
An essential aspect of knowing how to sell mutual funds is to understand when you should get out of a fund. If you perceive that a particular mutual fund is underachieving or is poorly benchmarked for a prolonged period, you may want to reconsider investing in it. Investors invest in mutual funds with an objective and hold it responsible to that purpose in the portfolio. A good reason to sell is if it does not deliver on that purpose.
There are numerous mutual funds in India, but knowing which one to invest in can go a long way in achieving your goals. Now that you know how to sell and buy mutual funds, you might want to learn when to sell and buy mutual funds. To help you research and analyse the right funds, depository participants, banks and brokers such as Kotak Securities can be your ally in buying and selling mutual funds online. Take advantage of expert and professional guidance and achieve your financial goals with ease.