How to Invest in Mutual Funds?

A lot of people believe that stock market-related instruments are risky. This stops them from investing in equity mutual funds as well. However, nothing can be further away from the truth. In fact, there are diverse, a plethora of options an investor can choose from to lower risk and earn a decent ROI.

Some of the options to lower risk include SIP, STP, Debt funds, balanced funds etc. All these modes of investments can lower risk and generate a better return than products like Fixed deposits and PPF. Investors can also look up at our video “different types of mutual funds” to get a better understanding

Low awareness of mutual funds and how to invest in mutual funds has led to lower penetration of mutual funds in India. As a result, Mutual Fund penetration in India is under 2% where as in US it is 55%. Here we explain 5 simple steps to invest in Mutual funds;

Steps to Invest in Mutual Funds

1. Go to to check if you are KYC complaint

2. If you are not KYC compliant then go ahead and complete your KYC formalities. For this, you will need a


b)PAN Card Copy

c)Address Proof Copy

You may connect with MutualFundWala to help you with the same.

3. Select 2-3 funds to invest in. You may choose a lump sum or sip, however, keep in mind that sip will lower the risk and generate better ROI over a long term.

4. Download the forms, fill it sign it, attach cheque’s with it and deposit in it the relevant AMC or call trusted mutual fund advisor i.e. MutualFundWala.

These investments can be made either online or offline. However, keep in mind that you always need a financial advisor for hand-holding, explain to you why a certain fund needs to be changed and help you understand market conditions more so in turbulent times. That’s exactly the role of an expert mutual fund advisor

Investing in Mutual funds is not the end of the road. You need to constantly monitor your returns and weed out the nonperforming funds and reinvest in the performing ones. Your investments should meet your financial objectives and your hard earned money should be put to good use. Or else all the exercise of investing in mutual funds will be counter productive.