A Beginner’s Guide to Investing in Mutual Funds: Tips and Tricks for a Successful Investment Journey

Mutual funds operate by combining money from many different investors. The fund house raises money from investors and makes investments in a variety of financial products, such as stocks, bonds, etc. The securities are chosen based on the investment goal of the fund. The fund will invest predominantly in equities, for instance, if the investment objective is capital appreciation. The fund will, however, invest in money markets or bonds if the goal is to create income. Professional fund managers oversee mutual fund schemes with the goal of ensuring that investment goals are achieved.

Tips and Tricks for a Successful Investment Journey: 

These five simple steps for investing in mutual funds can be used by anyone who is unsure of how to get started.-

  • Step 1: Understand your risk tolerance and capacity. 
  • Step 2: Do a perfect asset allocation, which combines a variety of debt and equity securities.
  • Step 3: To compare mutual funds, find the funds that invest in each asset type and research their historical performance or investing goals.
  • Step 4: Decide the mutual fund plan you will invest in. The application can then be launched either online or offline.
  • Step 5: To achieve better outcomes and bigger profits, diversify your investments and conduct routine follow-ups are crucial.

How to Invest in Mutual Funds? A Beginner’s Guide to Investing in Mutual Funds:

  • Online mode:  

  • Via AMC: The first method via online mode is to create an account on an official website (such as the AMC website). Each asset management company has a website where you can invest in a variety of mutual funds from each category. You must fill out all the required information according to the directions on the fund house’s official website before submitting it. Your KYC will be checked, and after successful verification, you can begin investing. 
  • Through an App: Asset Management Companies make it simple and quick for investors to invest in mutual funds using mobile applications. A platform for investing in mutual funds is offered by third-party mutual fund aggregators as well as the AMCs’ own mobile applications. The app gives the user the ability to buy or sell units, examine account statements, engage in mutual fund schemes, and access other important information about their portfolio. Additionally, investors have access to a variety of funds offered by numerous investment firms.
  • Offline mode:

  • By the fund house: By going to the fund house’s local branch office, you can invest in mutual fund plans. You need to have a copy of the following documents:
  • Passport-size photo; 
  • Identity and Address Proofs; 
  • A Cancelled cheque

You will receive an application form from the fund house, which you must complete and submit with the required supporting documentation.

  • Through broker: You will be assisted throughout the entire investment process by a mutual fund broker or distributor. He will give you all the details you require to make your investment, such as the characteristics of various plans and the paperwork required. He will also provide advice regarding the best investment opportunities. He will charge you a fee for this, and it will be subtracted from the overall investment sum.

 The ICICI Prudential Mutual Fund House owns the open-ended multi-asset allocation hybrid ICICI Prudential Asset Allocator Fund. In December 2003, the ICICI Prudential Asset Allocator Fund was established. The main goal of the Scheme is to produce capital appreciation, mostly through a portfolio of equities, debt, and gold schemes accessed through the various investing strategies of underlying schemes. This program is appropriate for investors seeking exposure to fund-of-funds programs investing in equity-oriented programs, debt-oriented programs, and gold ETFs/programs.

Finance-related industries make up the majority of the equity part of the ICICI Prudential Asset Allocator Fund. Compared to other funds in the category, it has less exposure to the financial industry. The ICICI Prudential Asset Allocator Fund’s AUM, or assets under management, as of April 20, 2023, is 18,393.50Cr. As of April 19, 2023, the ICICI Prudential Asset Allocator Fund’s NAV is 92.39. As of April 19, 2023, the ICICI Prudential Asset Allocator Fund’s Current Net Asset Value is Rs 85.62. The minimum SIP investment is Rs. 1000. ICICI Prudential Asset Allocator Fund’s expense ratio as of April 20, 2023, is 0.27%. 

It has generated returns of 11.74% on average every year since its start. The consistency of returns produced by the ICICI Prudential Asset Allocator Fund scheme is comparable to that of the majority of funds in its class. ICICI Prudential Asset Allocator Fund has a strong capacity to limit its losses in a market while dropping.