Forget FD! Get 4 times more profit by investing money sitting at home, your money will double instantly

New Delhi. after 4 months of decline The bullish trend continues in the stock market. Sensex has increased by 10 percent from the low level. Seeing these returns, common investors also start getting attracted towards the stock market, but their nervousness increases due to the market risk. In such a situation, investing money in Best Mutual Funds can be a good option for investors. Experts say that the money in mutual funds is also invested in the market, but in this, an expert does this work for you, which reduces the market risk.

First of all you have to decide what is the objective of your investment.how much can you invest and for how long can you stay in it. If you want to invest for a year or two, then there will be separate mutual funds for that. If you want to invest for 5, 7, 10 years or even more, then there will be other mutual funds for that.

It is clear that choosing the right mutual fund depends on what is your investment period. For example, if you are investing for a short term, you can choose a debt fund or a liquid fund. However, if you are investing for the long term, then equity mutual funds will be right for you.

Getting more returns from FD- According to the data given on Moneycontrol, investors in small cap equity mutual funds have got more than 10 percent returns in the last one month. At the same time, if we look at the return on FD, it is only 5 percent.

What do we do now- In such Systematic Investment Plan (SIP) allows you to make regular investments in mutual fund schemes. Experts call this the most effective way of investing in mutual funds. To start investing in SIP, certain conditions need to be fulfilled. These are explained below. SIP should be started according to the type of scheme, its performance, portfolio and your goals. KYC has to be completed before starting SIP. It should always be kept updated. Investors can start SIP through both offline and online modes.

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Along with SIP instructions, investors can also make lump sum investment. -If any change is made in the SIP instruction, the SIP has to be started again. This may require repeating the entire process. Content on this page courtesy of Center for Investment Education and Learning (CIEL). Contribution of Girija Gadre, Aarti Bhargava and Labdhi Mehta.

You can start SIP sitting at home Method to start offline: For this the investor needs to fill a form. This can be obtained from the fund house. There is an option to download it from the fund house website also. In this, an auto debit NACH mandate also has to be filled.

Apart from this, a copy of the canceled check needs to be attached with the KYC documents. These KYC documents include proof of address and identity. These documents can be submitted at the Investor Service Center or branch office of AMC.

Online Method: SIP can also be started through online method. These options are available for this. SIP can be started using the i-SIP facility from the fund house website by entering your personal details, SIP and bank details. On filling the details, a URN will be generated.

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After this the investor will need to log in to his bank account. Then they can add the mutual fund as ‘biller’. URN will be required to enable SIP instruction.

Distributor Portal – Mutual fund distributors like corporate distributors or banks provide portals for online transactions of mutual funds. SIP can be started easily through these portals. If the bank mandate for auto debit is already registered on the portal, it can also be used for SIP.

Mutual Fund Transaction Portal- There are many types of transaction portals for mutual funds. These include portals provided by the registrar of the fund house or the MFU (Mutual Fund Utility) platform. SIP can also be started using these platforms.

It is important to know about NAV-Let us assume that you invest Rs 10,000 in a mutual fund scheme. Its NAV is Rs 200. In this situation you will get 50 units. How? Dividing 10,000 by 200 gives you 50. 10,000/200=50. You get these units by investing in the scheme. These units have the most importance in buying and selling.

Now suppose the NAV increases from Rs 200 to Rs 250 in a year and you decide to sell it. What will happen then? Now you will get Rs 12,500. This amount will be obtained by multiplying 50 units by Rs 250. 50*250=12500. But one thing has to be paid attention to here. Suppose exit load is charged at the rate of one percent, then you will get only Rs 12,375. Its formula is: 50 units * Rs 247.50 NAV – Exit load.

Thus, NAV is the value of the assets of the mutual fund scheme, which is arrived at by deducting the liabilities per unit. NAV represents the total value of all securities held along with cash. As you have seen, it is calculated on the basis of unit in which all liabilities are deducted.

Forget FD!  Get 4 times more profit by investing money sitting at home, your money will double instantly

If the prices of most of the securities in the scheme rise, the NAV will also rise. If it decreases then NAV will decrease. That is, the NAV increases and decreases with the prices of the securities of the scheme. Securities refer to both equity and debt instruments. This includes equity shares, bonds, debentures, commercial papers etc.

Overall, if the scheme makes good investments then its NAV will increase. That means the value of investment will increase. If the investment of the scheme decreases then its NAV will also be affected.

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Tags: business news in hindi, mutual fund investors, mutual funds, Returns of mutual fund SIPs

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