Most of the mutual fund houses, brokerage firms, banks are having facility of making online investments in Mutual Fund schemes in India.
Benefits of online investments:
· No need to visit the office of the broker or distributor.
· No need to filling Application Forms manually.
· Once the account (Folio No.) is created making additional investment is very easy and time saving.
· By applying for E-PIN from the company, easy to manage funds.
· Redemption or Switch between one scheme to another is just click away.
· Account Statement 24/7
· Investor can track the investment 24/7.
· If you wish to make maximum profit, you should invest regularly and if you can manage to invest on every occasion of decline in SENSEX you are about to make maximum profit. To do this best option of making investment is Online Investment.
Disadvantages of Online Investment:
No personalize advice; investor has to take his decision at his own.
Very few offers personalize Portfolio tracker with facility to add all Mutual Fund investment, including made earlier through different distributor in same portfolio.
To overcome the above disadvantages it is better to invest through a broker who provides value added services like flexible portfolio tracker with facility of including all investment record in at one place. It is also better to invest through a broker who provides advisory services, some of them are providing it free of cost and some of them are charging for these services. It will totally depend on you to choose paid or free service. If you are customize with the mutual fund investing it is wise to choose free advisory service. Many sites provides data of top performing mutual fund schemes, rating criteria is different and hence one cannot relay on this data while taking investment decision.
The points should be taken into consideration while investing in Mutual Fund scheme.
Time horizon: It is most important factor. If you are long term investor there is chance of getting better returns. In this case you can exit at any time when you have made sizable profit.
Risk taking aptitude: It is also most important factor, if you are afraid for losses in short term you should avoid investing in equity schemes. In such case you should go for hybrid schemes or pure debt schemes. Investing in pure debt scheme is more profitable than investing in Banks & Post.
Diversification: It is better to invest in diversified schemes for new investors. For customized investor, who is capable of tracking his investment and market conditions, sectoral schemes is best option, in sectoral schemes timely exist is important.
Diversification by schemes: It is always better to invest in different schemes of top mutual fund houses that to put all money in one diversified scheme.
Past performance: It is the most essential criteria and hence one should view the historical performance of the scheme. Considering returns for the period of 1 Year, 3 Year, 5 Year and since inception will help you to take your decision. The scheme which outperform in all types of returns category is safer choice for investment.
Invest regularly and if you invest at the time of every fall in Market you are going to make huge profit over the period of time, it is my own experience. My strategy to invest at every fall in SENSEX by 2%. In last many years I have adopted this policy successfully.
Sadanand Thakur is expert in Mutual Fund and exclusively giving advice for mutual fund investments. To know more about mutual funds in English and if you wish to have the same in Marathi the option is also available here. At present online investment in Reliance Mutual Fund schemes are available on this site with instructions for new users. Using online investment facility for regular investment is more profitable for investor. Invest online regularly at the time fall in BSE SENSEX by more than 2%.
