Investment In Mutual Fund
You can start your investment journey with amount as low as 500! Let us aid you with your investment decisions and find the right mutual funds for you!
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INTRODUCTION
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Life insurance is a financial tool that can assist people in achieving a number of financial objectives. Life insurance is most commonly used to pay for dependent family members in the event of a premature death. Life insurance can also be used to pay specific goals, such as future college expenditures for a child or grandchild. Life insurance can be used to pay federal and state death taxes, as well as estate settlement costs, as part of an estate plan. Life insurance can be used to make the ultimate present by transferring wealth across generations and leaving charity bequests. It is critical to understand the methods for assessing how much insurance is required in a specific case, as well as the many types of policies and riders available, in order to appropriately utilise this powerful weapon to help an individual achieve his or her financial goals.
ADVANTAGES
There are many reasons why investors choose to invest in mutual funds with such frequency. Let's break down the details of a few.
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Advanced Portfolio Management
When you buy a mutual fund, you pay a management fee as part of your expense ratio, which is used to hire a professional portfolio manager who buys and sells stocks, bonds, etc.1 This is a relatively small price to pay for getting professional help in the management of an investment portfolio.
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Dividend Reinvestment
As dividends and other interest income sources are declared for the fund, it can be used to purchase additional shares in the mutual fund, therefore helping your investment grow.
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Risk Reduction (Safety)
Reduced portfolio risk is achieved through the use of diversification, as most mutual funds will invest in anywhere from 50 to 200 different securities—depending on the focus. Numerous stock index mutual funds own 1,000 or more individual stock positions.
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Convenience and Fair Pricing
Mutual funds are easy to buy and easy to understand. They typically have low minimum investments and they are traded only once per day at the closing net asset value (NAV). This eliminates price fluctuation throughout the day and various arbitrage opportunities that day traders practice.
List Of Documents Required For Mutual Fund
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KYC Compliance: Your PAN has to be verified by under the Know Your Customer (KYC) norms of the Government of India to be able to invest in mutual funds. You can check your KYC compliance or register yourself for KYC through the website of CDSL Ventures Limited (CVL). If you are already KYC-compliant, you need to submit the KYC acknowledgement letter or copy of the KYC-compliance page. If you are not KYC-compliant, keep the following documents handy:
KYC individual form
Passport-sized photograph -
Proof of identity: Any of the following documents are acceptable as proof of identity –
PAN with photograph
Aadhaar
Passport
Voter’s ID card
Driving licence
Identity card/document with applicant’s photo, issued by any of the following: Central/State Government and its Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities, Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc. to their Members; and Credit cards/Debit cards issued by Banks. -
Proof of address: Any of the following documents can be submitted as proof of identity –
Aadhaar
Driving licence
Passport
Voter’s ID card
Ration card
Registered lease/sale agreement of residence
Flat maintenance bill
Insurance copy
Utility bills such as landline telephone bill, electricity bill or gas bill, less than 3 months old
Bank account statement/passbook, less than 3 months old
Self-declaration by High Court and Supreme Court judges, giving the new address in respect of their own account
Proof of address issued by Bank Managers of Scheduled Commercial Banks/Multinational Foreign Banks/Gazetted Officer/Notary Public/Elected Representatives to the Legislative Assembly or Parliament/a document issued by any Government or Statutory Authority
Identity card/document with address, issued by any of the following: Central/State Government and its Departments. Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities and Professional Bodies such ICAI, ICWAI, ICSI, Bar Council etc. to their Members
For Foreign Institutional Investors (FII)/sub account, Power of Attorney given by FII/sub-account to the Custodians, duly notarised and/or apostiled or consularised
Proof of address in the name of the spouse is also acceptable. -
Cheque for SIP or lump sum amount, as per your choice. If the cheque doesn’t have your name on it, then bank statement for the ongoing month also has to be submitted. Blank cheques are not mandatory any more. Cheques are also not required if you are starting the mutual fund account online
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Third party declaration for minors: If the investor is a minor, parents are allowed to invest on behalf of them. For this, you need to fill out a third party declaration form. For non-individuals – that is, companies, trusts, partnership firms, Hindu United Families (HUF), etc. – the following documents are required, apart from or instead of the ones listed above:
Certificate of registration/incorporation
Memorandum and Article of Association
Address proofs
Resolution of the Board of Directors to open an account for investment in Mutual Funds Schemes
List and signature/s of authorised person/s
Deed of declaration of HUF
Bank Statement
Trust deeds (for Trusts)
Power of Attorney (for Trust)
Certificate of registration with SEBI (for FIIs)
Self-certification on letterhead (for banks, institutional investors, regulatory bodies, army organisations and government bodies