How to trade in Mutual Funds

How to trade in Mutual Funds
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Mutual funds units in India can be bought and sold in a number of ways. However, it is important to remember that you should carry out thorough research before both buying and selling mutual fund units and not make transactions on a whim or due to poor performance of the fund or market in the short run.

Investing in Mutual Funds

If you wish to purchase mutual fund units, you can simply do so by contacting the fund house or AMC. Alternatively, you can contact your broker and ask him to make the required mutual fund investments in the funds in which you wish to invest. Investing in funds through a broker can be useful to you if you are investor who wishes to invest in a number of mutual funds and don’t wish to be bothered with carrying out a large number of fund related formalities and documentation.

You also have the option to invest in mutual funds online. Under the online option you simply have to visit the website of the fund house with whom you wish to invest, select the fund and the number of units to purchase. You can only buy funds online, once the required registration (KYC) and documentation is complete.

Redeeming Funds

To redeem your funds you can call your distributor or broker, provide the scheme name, and number of units or amount you wish to sell in the fund. If you have purchased mutual funds online, select the number of units you wish to redeem and confirm your order online itself. The proceeds will subsequently be transferred to your registered bank account.

Mutual fund investments are subject to market risks, read all scheme related documents carefully.

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