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Feb 2023
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A mutual fund is a type of investment product where the funds of many investors are pooled into an investment product. The fund then focuses on the use of those assets on investing in a group of assets to reach the funds investment goals. There are many different types of mutual funds available. For some investors, this vast universe of available products may seem overwhelming.
Once the KYC requirements are completed, you can consider any of the following popular methods to invest:
- A financial advisor (FA) is a certified, professional expert who can help you to identify your financial goals, build a proper financial blueprint based on your goals, and recommend the correct investment options to match them. Make sure that you understand how the advisor is paid, and that you are comfortable with his or her recommendations. You may need to pay the advisor a retainer/advisory fee.
- Mutual fund distributors/ brokers/ agents strong financial entities that you will already have a relationship with and who may recommend certain investment products to you. Once again, make sure that you understand how they are paid for your investment and that you have fully researched your own financial and investment needs. They can take your investment monies directly either via bank transfer or across the counter. Once you have opened an account with them, most of them offer investments in multiple asset classes (for instance, through a broker, you can invest in mutual funds, equity and debt) and have value-added services such as financial planning, risk profiling, etc. You may not need to pay the distributor or agent any additional fee as they earn directly through commissions given by the mutual fund companies.
- Direct investments: You can also buy directly from the mutual fund house without the need to pass through any intermediary or “middleman”. Please note, you will generally not receive any advice and will have to do research on your own. You can buy physically by visiting the asset management company’s office or filling in application forms and mailing them with supported documents, or you could simply choose to buy online. Most popular mutual fund companies today have websites where you could make any transactions.
Key Takeaways
- You can invest in mutual funds through a professional intermediary or directly.
- Make sure you understand how the intermediary earns through your investment.
- Some intermediaries offer value added services, understand them and seek what you feel is necessary.
- In general, new investors can start by seeking advice from an independent financial advisor.
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PGIM India Asset Management Private Limited
(CIN - U74900MH2008FTC187029)
Toll Free Number: 1800 266 7446
Email: care@pgimindia.co.in
This is an Investor Education and Awareness Initiative by PGIM India Mutual Fund.
All the Mutual Fund investors have to go through a one-time KYC (Know Your Customers) process. Investor should deal only with the Registered Mutual Funds (RMF). For more info on KYC, RMF and procedure to lodge/redress any complaints, visit https://www.pgimindia.com/mutual-funds/ieid.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY. Read more
All the Mutual Fund investors have to go through a one-time KYC (Know Your Customers) process. Investor should deal only with the Registered Mutual Funds (RMF). For more info on KYC, RMF and procedure to lodge/redress any complaints, visit https://www.pgimindia.com/mutual-funds/ieid.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY. Read more
The information contained herein is provided by PGIM India Asset Management Private Limited (the AMC)
on the basis of publicly available information, internally developed data and other third-party
sources believed to be reliable. However, the AMC cannot guarantee the accuracy of such information,
assure its completeness, or warrant such information will not be changed. The information contained
herein is current as of the date of issuance* (or such earlier date as referenced herein) and is
subject to change without notice. The AMC has no obligation to update any or all of such
information; nor does the AMC make any express or implied warranties or representations
as to its completeness or accuracy. There can be no assurance that any forecast made
herein will be actually realized. These materials do not take into account individual
investor's objectives, needs or circumstances or the suitability of any securities,
financial instruments or investment strategies described herein for particular investor. Hence,
each investor is advised to consult his or her own professional investment / tax advisor / consultant for advice in this regard.
The information contained herein is provided on the basis of and subject to the explanations, caveats and warnings set out elsewhere herein.
The views of the Fund Manager should not be construed as an advice and investors must make their own investment decisions regarding investment/ disinvestment in securities market and/or suitability of
the fund based on their specific investment objectives and financial positions and using such independent advisors as they believe necessary.
