Financial Education, Financial Inclusion, financial literacy,

1. How To
Invest in Mutual Fund?

2. The process
Decide Your Investment Objectives
Shortlist Funds
Analyze & Compare Shortlisted Funds
Don’t Pick Just One
Change Tracks Whenever Necessary

3. Decide Your Investment Objectives
Before you set out to invest money, it is
important to take a step back and understand
exactly why you are saving up. Your age and
stage of life will also play an important role in
deciding your investment objectives. Decide
what you want your money to do for you and
then proceed.

4. Shortlist Funds That Match Your Objectives
The team that manages a mutual fund picks the
assets into which investors’ money will be put
based on clearly defined investment
objectives. There are many kinds of mutual
funds based on these investment objectives –
rapid growth, retirement benefits, regular
returns and so on.

5. The four fundamental objectives that guide
most funds are:
• Growth
• Fixed Income
• Balance of growth and income
• Quick Turnover of Funds

6. Analyze & Compare Shortlisted Funds
Look for the prospectus or quarterly reports of
the shortlisted funds and analyze their
performance. Also compare their performance
against that of other funds with similar
objectives and benchmark indices. Go for
established funds with a proven track record.

7. Investing in a mutual fund is not like putting
money in a bank account.
There are certain fees that are attached to the
investment you make that will be deducted by
the Asset Management Company (AMC).
These fees can sometimes add up to be quite
significant and eat away into whatever returns
you might make on your investments.
These fees include entry load, exit load, annual
expenses, management fees and so on.

8. Don’t Pick Just One
Once you are done with your analysis, don’t
jump onto the best fund as per your reckoning
and park all your money with just one fund.
Spread your risks by splitting your investment
and putting in smaller sums in two or three
different funds that figured on the top of your
list after all the filtering and analysis.

9. Change Tracks Whenever Necessary
Unlike fixed income instruments like bank FDs,
mutual fund investments are subjected to the
same market forces that affect equities,
derivatives, and other forms of securities.
However, the level of scrutiny need not be as
close as you would have for individual stock
purchases for the simple reason that a mutual
fund is a professionally managed investment.

10. Qualified stock market analysts and fund managers
who track every small move in the markets
manage your funds as a full-time job.
Having said that, you can’t simply wash your hands
off your mutual fund investments once you buy
them either. With fund performances moving in
tandem with the stock market’s movements, it
becomes imperative that you keep an eye on
what is happening to your investment on at least
a quarterly basis.

11. A financially aware and empowered India.