Introduction

Indivest aims to empower financial freedom within India. The wealth creation journey needs one to learn the basic blocks of finance. Most traditional investors in India generally prefer invest in real estate, gold mutual funds, stocks, and fixed deposits. There are various alternatives to these traditional options, but today lets focus on understanding the most popular option these days which is Mutual funds in less than 3 minutes

What are Mutual funds?

Professional managers pool money from investors in a vehicle called a mutual fund, ranging between from as low as Rs. 500 and higher amountsto as high as lakhs or crores. This pooled money is carefully utilized to invest in a variety of investment options, like stocks, bonds, and securities.

These funds are managed by sound financial individuals known as fund managers. It is the easiest, most accessible, liquid investment option with a straightforward exit. One doesn’t need to go through the stress of deciding which stock or instrument to buy but leave it to the wisdom or highly experienced and knowledgeable fund managers! The same person who manages your Rs. 500 investment, also manages maybe a Rs. 50,00,000/- investment for an HNI in the same fund!

Types:

1. Based on Redemption:

   There are open-ended funds that can be redeemed at any time, and closed-ended funds that can be redeemed on maturity.

2. Based on asset classes, basis your risk appetite:

   • Equity mutual funds (for those who want higher returns, but are fine accepting higher risk): The fund managers invest at least 60 to 65% of the investment in the assets of listed companies on the stock exchange.
   • Debt mutual funds: The idea is to avoid volatility and invest in fixed-income instruments, for example, corporate bonds, government securities, etc.
   • Hybrid mutual funds: Here the investment is divided in both of the above, depending upon the objective and hence aim to achieve balanced returns.

Modes of Mutual Fund Investment:

1. Lumpsum

   Investment a fixed amount in a single go. Good option when markets are down to buy more units at lower prices.

2. SIP

   Investment of small amounts in a disciplined manner over long period of time. Good option to achieve normalised returns over a long period of time, capturing various economic cycles.

What are the documents required to invest in mutual funds?

1. PAN Card (Mandatory)
2. Voter ID Card
3. Driving License
4. Passport
5. Aadhaar Card

How can you start? Empower your mutual fund journey with Indivest, with no direct fees, user-friendliness, and a diverse fund selection. Begin now to start building wealth!