How to invest in mutual funds?
What are Mutual Funds:
To know what mutual funds are, one must first know about the stock market. The stock market is where companies' shares are sold and bought. Shares of various companies are available in the stock market. Each company's share has a price. Anyone who wants to invest in that company has to buy shares of that company. As most experienced traders usually do their trading on a daily basis This is also known as intraday trading. However, the main purpose of investors in the stock market is to buy shares of different types of companies at a lower price and sell them at a higher price.
However, investing in the stock market carries a lot of risks. so many people are afraid to invest in the stock market. Mutual funds are another option for those who think that investing in the stock market is a risky business as well as for those who want to increase their wealth in the long run.
Mutual funds are managed by reputable companies. Companies like SBI also run a variety of mutual funds, some of which are the SBI Small Cap Fund and the SBI Long Term Equity Fund. Mutual funds invest the money we invest, in a variety of companies through expert supervision.
What is SIP:
We can invest in mutual funds in two ways, one is {LUMPSUM} which means investing in a large amount at once, those who cannot invest at once as well as those who want to deposit a small amount of money every month choose the SIP option. SIP is a systematic investment plan that allows you to invest a small amount each month and get a good amount in the long run. Mutual funds have a lower risk compared to the stock market.
Although not as risky as in the stock market, it can be a bit risky but investing in mutual funds over a long period of time can save you a lot of money.
What to do to invest in mutual funds:
Most people go to mutual fund houses and invest, but mutual fund houses are only available in big cities. Many are missing out on such good opportunities because they are not available in small cities and towns. But now with the rise of technology one can invest in mutual funds without having to go to mutual fund houses. This is how you can invest in mutual funds using your mobile phone through the GROWW app
1. You must first install the GROWW APP. Click on this (Download Groww) link to download the Groww App.
2. Register by giving your mail id and mobile number.
3. Enter the information about you in the next steps.
4. Then click on DONE. Your account will be activated within a day or two after doing so. Then you can invest in the desired mutual funds.
Note:
Mutual funds have different types of plans, out of them the most important are direct plan and indirect plan. A direct plan means that there will be no agents between you and the mutual fund company and you will not have to pay any commission to anyone. If you want to invest directly in mutual funds without any such agents, you can select and invest in a direct plan through the GROWW app.
An indirect plan is to invest in mutual funds through an agent so some of the amounts you pay each month goes to some agent in the form of commission.
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