Fund selection is the most difficult and important part of mutual fund investment. Investment procedure is also vital. If you have start investing, then you will have a clear idea about the procedure. So to start investing, you should have knowledge about both procedure and selection. Tips for both selection and procedure are listed below here.
Mutual Fund Investment Tips:
Selection:
- Return percentage, manager profile, dividends and Net Asset Value are the important details to be collected. The information can be collected in many ways.
- Brokers can give information. Still, cross checking is mandatory. Past and present fund holders can give creative ideas to tackle difficult situation. These ideas may help you to take crucial decisions in time.
- Online companies and websites contain return percentage, dividends and Net Asset Value. Past return percentage of the scheme for 6 months, 1 year, 3 year and 5 years should be checked compulsorily. Net asset value is the rate at which the units are being traded. This value of the unit is also vital.
- Fund manager takes decision at time of market crisis. So, he is an important person. He is responsible for the profit and loss of the plan. So, his profile must be checked to know about his decision making skills.
Procedure:
- You can apply through broker. Some companies have facilities of online application form.
- In broker case, application form should be filled and cheque must be passed. You will receive statement after the units are allotted.
- In online application form, the form can be filled in online. The money can also be transferred in online.
