How to Open a Mutual Fund Account?

A mutual fund (MF) is a good investment avenue to earn high returns on a low lock-in period. Looking to park funds in an MF scheme, but not sure how to kick start your investment journey? Fret not!

Nowadays, you can invest in MF schemes and enjoy superior wealth creation in just a few clicks. Read on to find out more.

Start the onboarding process

Register with a trusted investment platform by sharing your Know Your Customer (KYC) details. With Tata Capital’s Moneyfy app, you can provide your KYC information online. All you need to do is upload photocopies of documents like your residence proof, PAN card, age proof, and fulfil other paperwork requirements requested by your investor firm.

Additional Read: Understanding Mutual Fund Terminologies

Compare different fund schemes

After completing the KYC verification digitally, choose from a pool of MF investment schemes, including small-cap, large-cap, multi-cap, mid-cap, liquid funds, low duration funds, credit risk funds, debt funds, etc. Compare fund schemes across the following attributes-

#1 Basic comparison

• Subcategory
• Category
• Investment Horizon
• Quality
• Fund risk grade
• Ratings
• Past returns
• Investment information

#2 Detailed comparison

• Withdrawals
• Asset Allocation
• Scheme portfolio
• Scheme details
• Top sector holdings

Besides that, invest in top-rated mutual funds, India’s largest companies, gold funds, tax-saver MF schemes, etc. Choose the right investment option for yourself, depending on your financial goals.

With Tata Capital’s Moneyfy account, you can use a mutual fund scanner to screen the schemes yourself. If you know which scheme you are interested in, you can directly pick your investment type with the MF Scanner.

Invest via lump sum or SIPs

Now select a hassle-free mode of investing in your MF scheme. You can also set up an auto-pay feature that automatically debits the prescribed amount from your account. Make automatic payments through NACH mandates, eNACH, etc.

MF schemes help you build a diversified portfolio with monthly investments as low as Rs. 500 through a Systematic Investment Plan (SIP) of your choice. You can also invest with a lump sum amount.

However, with SIPs, you can lower the overall cost of your investment while earning returns through the power of compounding. Besides, you can use a SIP calculator to calculate returns on your investment.

Start a SIP

Starting a systematic investment plan is easy. If you use Tata Capital's Moneyfy app, once you log on using your MPIN, complete your KYC, choose a fund, you can select an amount and day of the month.

Here, the chosen amount is invested in your MF scheme. The date of the month refers to the day every month the SIP amount would get deducted from your account.

While you can't increase or decrease the amount in an ongoing SIP, you can stop your current SIP to start a new one. Moreover, you can start multiple systematic investment plans in the same mutual fund scheme.

Additional Read: Importance of Mutual Funds

Over to you

So you see, investing in an MF scheme is easy! With Tata Capital’s Moneyfy app, select schemes aligning with your financial goals, risk appetite, and investment objectives from the comfort of your home.