How to invest in mutual funds in 2024

Are you wondering about the best mutual fund 2024? If yes, then you are not alone! As we enter the month of January, it is time to reassess our financial plans and augment our portfolios to make the most of the many opportunities which 2024 will provide investors. And investing in mutual funds, be it in schemes such as index funds, equity funds, debt funds, passive debt funds or passive equity funds, is an excellent way to begin or recalibrate your investment journey. If you are new to the world of investing, or just wish to brush up on your basics, here is everything you need to know about how to invest in mutual fund, and how to invest in mutual funds online 2024. Read on to know all the details.

Investing in mutual funds 2024

While 2023 has been a very volatile year for the market, on a global scale, 2024 is expected to be more positive. With inflation finally coming under control, global and Indian central banks are expected to cut the unprecedentedly high interest rates, making way for the economies to grow in a robust manner. In this positive scenario, investing in mutual fund 2024 could be an excellent way to participate in the growth of the market, and you can do this through both the SIP (systematic investment plan) and lumpsum routes. Let us understand the concept of mutual funds better. Each mutual fund scheme is initiated by an Asset Management Company (AMC), which predefines its goals, investment types, allocation, and risk level for investors.

When you invest in a mutual fund, your money is aggregated by the AMC into various securities, including stocks, bonds, commodities, and sometimes real estate. The primary objective of any AMC is to maximise returns for investors while minimising risk and to this end, the fund managers at the AMC diligently oversee the fund, making necessary adjustments to ensure your investment is optimally aligned with the chosen securities. In terms of earnings, the securities within the fund, like stocks, may offer dividends, and bonds may yield interest. Upon declaration, these dividends or interests are distributed by the AMC to the fund's shareholders. Shareholders have the option to either withdraw these earnings or reinvest them by purchasing additional units of the fund.

Why should you invest in mutual funds in 2024?

Now, why should you park your hard-earned money in mutual funds? There are many reasons which make this investment vehicle an excellent choice for investors, beginning with the fact that you can access expert fund management at a small fee. Active mutual funds are managed by experienced and skilled fund managers, who take all possible efforts to help you earn optimal returns, making mutual funds a great option for individuals who are not keen on direct investing. Secondly, mutual funds enable you to diversify your portfolio and thereby, minimise the underlying risk. If you choose schemes such as hybrid mutual funds, or multi-asset funds, which combine multiple asset classes in one scheme, you can ensure optimal diversification through a single investment.

Further, since your fund managers consistently monitor and track the market, they will be able to take asset allocation decisions in line with the movement of the market, thereby ensuring better management of your corpus. Mutual funds are also very liquid and accessible, and you can purchase and sell units at will, as long as the schemes do not have a lock-in period or exit load. You can check these details in the scheme information document, before purchasing units in the scheme of your choice.

Steps to start investments in mutual funds 2024

To answer the question of how to buy mutual funds, you can follow a very simple process. The first option is online investment – here, you can start by choosing your desired mutual fund scheme and visiting the respective AMC's website to create an account. Follow the instructions provided on the site to fill in your details and complete your e-KYC (Know Your Customer) process by submitting Aadhar and PAN card details. After verification, you will receive confirmation, post which you can start investing. Alternatively, you can use stock-broking platforms and apps to invest in mutual fund 2024. For instance, if you have a demat account with a platform based then you need to simply log in to the website or app, find the mutual fund scheme, and place your order. Finally, for those of you who prefer offline methods, visiting the nearest branch of the scheme's AMC, Registrar & Transfer Agents (RTAs), or Investor Service Centres (ISCs) is an option. Here, you will need to provide a filled application form, necessary documents, and a cheque or bank draft for payment.

Now that you have all the details regarding mutual fund 2024 and the steps to invest in schemes in the New Year, let this be the push you need to start investing and securing your future. Remember, mutual funds, when invested in for the long term, have the potential to multiply your money manifold and therefore, the sooner you start, the better it is!

An investor education initiative by Edelweiss Mutual Fund

All Mutual Fund Investors have to go through a one-time KYC process. Investors should deal only with Registered Mutual Fund (RMF). For more info on KYC, RMF and procedure to lodge/redress any complaints, visit - https://www.edelweissmf.com/kyc-norms  

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS. READ ALL SCHEME-RELATED DOCUMENTS CAREFULLY