Create a portfolio
To start a mutual fund investment, you need to open an account with fund houses and complete your KYC. The next step is to create a mutual fund portfolio which many investors find tough. First, shortlist a few schemes with credible long-term performance record. While short-listing a fund, you should analyse its short and long-term returns to understand its performance history. Next, pick the ones that are in line with your risk profile and investment objectives.
Now decide how much you want to invest in it. The best way to invest in mutual funds is through systematic investment plans (SIPs). SIP allows you to purchase units of your selected mutual fund as per your budget at fixed intervals (typically, once a month). You can link SIP with your bank account for automatic debits.
Once you purchase the funds, don’t forget to monitor and review the performance of your portfolio at regular intervals. You can make changes in your portfolio whenever you think it’s necessary. It is recommended that you should review your investments and re-balance it at least once in a year.