Mutual funds are actually a way of investment in the share market. The mutual funds take out money from the investors and offer to buy and sell the shares using the capital to invest in securities of different companies.
Mutual fund investor needs to be very careful while investing in the funds. Below given are the basic procedures to invest in the Mutual Funds:
• Firstly before investing the mutual fund investor should get in touch with the Asset Management Company or AMC. If the fund houses are online the investor should track the website first. There are number of AMCs like ABN AMRO mutual fund, Birla Sun Life mutual fund, LIC mutual fund etc.
• Some mutual funds companies allow the mutual fund investor to invest online. Before investing the investor should check if he/she has a bank account with the respective bank the company has partnered with. For example ICICI prudential mutual funds allow the investors to buy online funds if the investor has a bank account with Centurion Bank, ICICI bank, HDFC bank, IDBI bank and UTI bank.
• Before buying the online funds the mutual fund investor should get in touch with the respective fund house. If the customer wants to meet someone the user can fill up the form and submit it online. The company will send the representative to meet the customer.
• The mutual fund user should have an online trading account. If the investor does not have any he/she should look for the one which allows both trading and selling funds online. Some companies do not have such facilities; they keep the customer’s details and send the agent later on.
• Some of the most important players are 5 Paisa, Geojit Securities, HDFC securities, India Bulls etc.